Laxman Singh And Another vs State Of U.P. And Others
2011 Latest Caselaw 5964 ALL

HIGH COURT OF JUDICATURE AT ALLAHABAD
 
 

?Court No. - 32
 

 
Case :- WRIT TAX No. - 1624 of 2011
 

 
Petitioner :- Laxman Singh And Another
 
Respondent :- State Of U.P. And Others
 
Petitioner Counsel :- B.B.P. Srivastav
 
Respondent Counsel :- C.S.C.,S.K. Pandey
 

 
Hon'ble Sunil Ambwani,J.

Hon'ble Manoj Misra,J.

Learned Standing Counsel represents respondent nos. 1 to 4. Shri S.K. Pandey appears for respondent nos. 5 and 6.

By this writ petition the petitioners, who had started the business in partnership with respondent nos. 5 and 6, are aggrieved by the order dated 23.9.2011 passed by the Deputy Commissioner, Commercial Tax, Khand-I, Padrauna, Kushinagar, by which he has cancelled the registration of the firm on the information given by partners that the business was closed since 10.9.2011 and  they have no closing stock.

Ordinarily the petitioners have right to represent, or to file an appeal against the order of cancellation of the registration. However, after hearing learned counsel for the petitioners and respondent nos. 5 and 6, we find that the dispute relates to dissolution of the partnership firm. Whereas the petitioners state that the firm has not been dissolved, and is still continuing in business, with the same assets; the respondent nos. 5 and 6 would submit that there was a mutual compromise on which the respondent nos. 5 and 6 agreed to pay Rs. 6.49 lacs to the petitioners out of which Rs. 4 lacs was paid. In order to run the business and to pay the remaining amount, an application for cancellation of the registration was given with mutual consent with a further condition that new business will be run by respondent no. 5 and 6 along with assets of the old firm.

We find that apart from the legal issues, the real dispute is between the partners. We also find that there are elements of settlement in the matter, if the petitioners and respondents no. 5 and 6 get an opportunity of mediation and conciliation.

We thus refer the matter to the 'Allahabad High Court Mediation & Conciliation Centre'. Both the parties namely the petitioner nos. 1 and 2 and respondent nos. 5 and 6 will report to the mediation centre on 7.12.2011. The mediation centre will nominate mediators, who will make an attempt to resolve the issues.

List this matter in Court on 23.1.2012 with the report of the mediation centre.

In the meantime the parties will maintain status quo both with regard to the registration as well as sale of the assets of the old firms including the stocks on the spot. If the matter is resolved before 23.1.2012 it will be open either of the parties to make an application to pass orders in the matter.

Order Date :- 21.11.2011

RKP