The Death Of One Of The Firm's Partners Does Not Preclude The Continuation Of Civil Proceedings Initiated By The Firm: Supreme Court

The death of one of the establishment's partners doesn't avert the durability of civil proceedings initiated by the establishment Supreme Court

The Supreme Court noted that the durability of the civil procedures that the establishment had started isn't prevented by the end of one of the partners.

Facts

Shiv Singh Galundia and his son Sumer Singh Galundia were business partners in Kamal Engineering Works. A civil complaint was launched by the company to secure fewer instructions, damages, and specific fulfillment of a contract. After the Trial Court dismissed the claim, they filed the First Appeal with the High Court. Shiv Singh Galundia, one of the partners, failed while the appeal was being heard. In the continuing appeal, his legal heirs at law sought relief as the departed partner's legal representatives under Order XXII, Rule 3 CPC. The Apex Court bench of judges Surya Kant and J K Maheshwari, citing Order XXX Rule 4 and Order XXII Rule 10 CPC, observed the following" still, the High Court dismissed the appeal observing that with the death of one of the two partners, the cooperation establishment stands dissolved automatically and, later, The right to sue doesn't pass to the other partner to gain the relief( s) sought by the cooperation established in the Suit.

Court observation

" It goes without saying that in cases where two individualities have filed an action under the name of a cooperation establishment and one of those individualities passes away while the case is pending, it isn't necessary to add the existent's legal representatives as parties to the proceeding, which will still be done by the law. In other words, the establishment's civil action can not be stopped simply because one of the partners passed away."

The court went on to add that in this case, the dead's legal representatives had formally asked for their impleadment in place of the departed, and there was no reason for the High Court to deny such a request since it was submitted on time and without any other legal walls.

In AVK Dealers v. Kerala State Civil inventories Corporation Limited,( 2013) 15 SCC 217, the court also handed an explanation of its decision.

Conclusion

"When a cooperation establishment consists of two partners, Paragraph 13 of the forenamed ruling can not be claimed to have held that the suit would stand abated in the case of the death of one of the partners. This Court has noted that the decree so given would not be executable indeed if the cooperation establishment prevails in the matter when one of the multiple partners dies in the suit brought in the name of the cooperation establishment" as compared to when one of the two partners of the cooperation company dies." It doesn't