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CPC Orders on Suits Involving Firms

CPC

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0% found this document useful (0 votes)
6 views9 pages

CPC Orders on Suits Involving Firms

CPC

Uploaded by

inspectionbaba
Copyright
© All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd

Page 1 of 9

NAME : PRASHANT SUBEDAR SINGH


CLASS : T.Y.B.L.S
ROLL NO : 48
SEMESTER : 9TH

SUBJECT : CPC
Page 2 of 9

INDEX
Sr No Topics Pg. No
1 ORDER 3-7
XXX
2 ORDER 8
XXXI
Page 3 of 9

Introduction

Suits by or Against Firms and Persons Carrying on Business in Names Other


Than Their Own. A suit may be instituted by or against any 2 or more persons
claiming to be partners in a partnership firm in the name of the firm provided
such persons, were partners in the firm on the date when the cause of action
occurred.

ORDER XXX – Suits by or against Firms and Persons


carrying on Business in Names other than their own

Rule 1: Suing of partners in name of firm—

(1) Any two or more persons claiming or being liable as partners and carrying
on business in India may sue or be sued in the name of the firm (if any) of
which such persons were partners at the time of the accruing of the cause of
action, and any party to a suit may in such case apply to the Court for a
statement of the names and addresses of the person who were, at the time of
the accruing of the cause of action, partners in such firm, to be furnished and
verified in such manner as the Court may direct.

(2) Where persons sue or are sued as partners in the name of their firm under
sub-rule (1), it shall, in the case of any pleading or other document required by
or under this Code to be signed, verified or certified by the plaintiff or the
Page 4 of 9

defendant, suffice if such pleading or other document is signed, verified or


certified by any one of such persons.

Rule 2: Disclosure of partners’ names—

(1) Where a suit is instituted by partners in the name of their firm, the plaintiff
or their pleader shall, on demand in writing by or on behalf of any defendant,
forthwith declare in writing the names and places of residence of all the
persons constituting the firm on whose behalf the suit is instituted.

(2) Where the plaintiff or their pleader fails to comply with any demand made
under sub-rule (1), all proceedings in the suit may, upon an application for that
purpose, be stayed upon such terms as the Court may direct.

(3) Where the names of the partners are declared in the manner referred to in
sub-rule (1), the suit shall proceed in the same manner, and the same
consequences in all respects shall follow, as if they had been named as
plaintiffs in the plaint:

Provided that all proceedings shall nevertheless continue in the name of the
firm, but the name of the partners disclosed in the manner specified in sub-rule
(1) shall be entered in the decree.

Rule 3: Service—
Page 5 of 9

Where persons are sued as partners in the name of their firm, the summons
shall be served either—

(a) upon any one or more of the partners, or

(b) at the principal place at which the partnership business is carried on


within India upon any person having, at the time of service, the control or
management of the partnership business there,

as the Court may direct; and such service shall be deemed good service upon
the firm so sued, whether all or any of the partners are within or without India:

Provided that, in the case of a partnership which has been dissolved to the
knowledge of the plaintiff before the institution of the suit, the summons shall
be served upon every person within India whom it is sought to make liable.

Rule 4: Right of suit on death of partner—

(1) Notwithstanding anything contained in Section 45 of the Indian Contract


Act, 1872 (9 of 1872), where two or more persons may sue or be sued in the
name of a firm under the foregoing provisions and any of such persons dies,
whether before the institution or during the pendency of any suit, it shall not be
necessary to join the legal representative of the deceased as a party to the suit.

(2) Nothing in sub-rule (1) shall limit or otherwise affect any right which the
legal representative of the deceased may have—

(a) to apply to be made a party to the suit, or

(b) to enforce any claim against the survivor or survivors.


Page 6 of 9

Rule 5: Notice in what capacity served—

Where a summons is issued to a firm and is served in the manner provided by


Rule 3, every person upon whom it is served shall be informed by notice in
writing given at the time of such service, whether he is served as a partner or
as a person having the control or management of the partnership business, or
in both characters, and, in default of such notice, the person served shall be
deemed to be served as a partner.

Rule 6: Appearance of partners—

Where persons are sued as partners in the name of their firm, they shall appear
individually in their own names, but all subsequent proceedings shall,
nevertheless, continue in the name of the firm.

Rule 7: No appearance except by partners—

Where a summons is served in the manner provided by Rule 3 upon a person


having the control or management of the partnership business, no appearance
by him shall be necessary unless he is a partner of the firm sued.
Page 7 of 9

Rule 8: Appearance under protest—

(1) Any person served with summons as a partner under Rule 3 may enter an
appearance under protest, denying that he was a partner at any material time.

(2) On such appearance being made, either the plaintiff or the person entering
the appearance may, at any time before the date fixed for hearing and final
disposal of the suit, apply to the Court for determining whether that person
was a partner of the firm and liable as such.

(3) If, on such application, the Court holds that he was a partner at the material
time, that shall not preclude the person from filing a defence denying the
liability of the firm in respect of the claim against the defendant.

(4) If the Court, however, holds that such person was not a partner of the firm
and was not liable as such, that shall not preclude the plaintiff from otherwise
serving a summons on the firm and proceeding with the suit; but in that event,
the plaintiff shall be precluded from alleging the liability of that person as a
partner of the firm in execution of any decree that may be passed against the
firm.

Rule 9: Suits between co-partners—

This Order shall apply to suits between a firm and one or more of the partners
therein and to suits between firms having one or more partners in common; but
no execution shall be issued in such suits except by leave of the Court, and, on
an application for leave to issue such execution, all such accounts and inquiries
may be directed to be taken and made and directions given as may be just.
Page 8 of 9

Rule 10: Suit against person carrying on business in name other than his
own—

Any person carrying on business in a name or style other than his own name,
or Hindu undivided family carrying on business under any name, may be sued
in such name or style as if it were a firm name, and, insofar as the nature of
such case permits, all rules under this Order shall apply accordingly.

ORDER XXXI – Suit by or against Trustees, Executors


and Administrators

Rule 1: Representation of beneficiaries in suits concerning property


vested in trustees, etc.—

In all suits concerning property vested in a trustee, executor or administrator,


where the contention is between the persons beneficially interested in such
property and a third person, the trustee, executor or administrator shall
represent the persons so interested, and it shall not ordinarily be necessary to
make them parties to the suit. But the Court may, if it thinks fit, order them or
any of them to be made parties.

Rule 2: Joinder of trustees, executors and administrators—

Where there are several trustees, executors or administrators, they shall all be
made parties to a suit against one or more of them:

Provided that the executors who have not proved their testator’s will, and
trustees, executors and administrators outside India, need not be made parties.

Rule 3: Husband of married executrix not to join—


Page 9 of 9

Unless the Court directs otherwise, the husband of a married trustee,


administratix or executrix shall not as such be a party to a suit by or against
her.

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