The High Court of Jharkhand directed the Registrar of Firms to register the firm of the petitioner after it was rejected due to its suffix and held that there was no reference that Company or Co. suffix cannot be used in a firm name under section 58 of the Partnership Act and what can be used is Ltd., or Pvt. Ltd. which specifically pertains to the name of a Company, but no such caveat is with respect to a firm name.
Brief Facts:
The petitioner, M/s K A S G and Co., a partnership firm filed the present petition against the order of rejection for the application of registration of the firm with the Registrar of Firms in terms of the Partnership Act.
Contentions of the Applicant:
The learned counsel appearing on behalf of the petitioner contended that the ground for not registering the firms has been set out under Section 58 of the Partnership Act which does not apply in the present case and the plea of rejection is that the company is used in the name of the firm as last suffix in the name of M/s K A S G and Co. and the registration cannot be denied on this ground.
Contentions of the Respondent:
The learned counsel appearing on behalf of the state contended that a specific reason had been assigned for refusal to the registration that a firm under the name of the company cannot be registered under the Indian Partnership Act and the application was for registration of a company named K A S G & Co. and thus on account of misinformation, registration was refused. It was further contended that the name of the Firm should not be in such a form so as to misrepresent the public at large and that suffix to the name creates an impression that it was not a firm but a Company and therefore has been refused as such an entity can be registered by Company Registrar.
Observations of the Court:
The court after stating the conditions observed that there was no reference that Company or Co. suffix cannot be used in a firm name and what can be used is Ltd., or Pvt. Ltd. which specifically pertains to the name of a Company, but no such caveat is with respect to a firm name and there is no other provision on the basis of which registration can be denied only for the reason that the firm name ended with a suffix Co. Company.
The decision of the Court:
The court allowed the petition and concluded that the refusal on the concerned ground was unsustainable and directed the Registrar of Firms to register the firm of the petitioners if other conditions for same are satisfied.
Case Title: M/s K A S G and Co. vs. State of Jharkhand and anr.
Coram: Hon’ble Mr. Justice Guatma Kumar Choudhary
Case No.: W. P. (C) No. 6642 of 2022
Advocate for the Applicant: Mr. Nitin Kr. Pasari
Advocate for the Respondent: Mr. Shrey Mishra
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