Citation : 2023 Latest Caselaw 12100 Bom
Judgement Date : 5 December, 2023
2023:BHC-AS:36078
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IN THE HIGH COURT OF JUDICATURE AT BOMBAY
CIVIL APPELLATE JURISDICTION
WRIT PETITION NO. 10994 of 2019
M/s. Wrangle Investment Limited,
SHARADA a company registered under Indian Companies
RANGNATH
WAHULE Act having its office at 2nd Floor, "CLIFFLET",
Digitally signed by
SHARADA
Sir Pochkhanwalla Road, Worli,
RANGNATH WAHULE
Date: 2023.12.05 Mumbai - 400 025. ...Petitioner
14:21:22 +0530
Versus
1. M/s. Mahendra Builders,
a partnership firm, registered under the
Indian Partnership Act and having their
address at "CLIFFLET", Sir Pochkhanwalla
Road, Worli, Mumbai - 400 025.
2. Mahendra V. Shah (Since deceased)
Indian Inhabitant, carrying on business
in the name and style of M/s. Mahendra
Builders, as sole proprietor having
Address at "CLIFFLET",
Sir Pochkhanwalla Road, Worli,
Mumbai - 400 025.
3. M/s. Bhram Deo Holding & Trading Ltd.
A company registered under Indian
Companies Act having its office at
2nd Floor, "CLIFFET",
Sir Pochkhanwalla Road, Worli,
Mumbai - 400 025 ...Respondents
____________________________________
Mr. G.S. Godbole, Senior Advocate i/by Ms. Eventa A.
Gonsalves a/w Mr. Reyden L. Gonsalves for the Petitioner.
Mr. Aspi Chinoy, Senior Advocate a/w Mr. Rohaan Cama, Mr.
Rohan Dakshini, Ms. Shweta Jaydev, Azraa Millwala i/by
M/s. Rashmikant and Partners for Respondent No.1.
____________________________________
1/31
Sharda Wahule
Sunny Thote
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CORAM : RAJESH S. PATIL, J.
RESERVED ON : 7 OCTOBER, 2023
PRONOUNCED ON : 5 DECEMBER, 2023
JUDGMENT :
1. This Writ Petition filed under Article 227 of the
Constitution of India, challenges Judgment and Order dated
26th September, 2019 passed by the Court of Small Causes in
Interim Notice No. 760 of 2002, thereby permitting the
Plaintiff (Respondent No. 1 herein) to carry out the
amendment to the plaint i.e. T.E. & R. Suit No.68/73 of
2001, which in pending in the Court Small Causes at
Bombay.
FACTS :-
2. One Mr. Mahendra V. Shah filed a T.E. & R. Suit No.
68/73 of 2001, in his capacity as proprietor of M/s.
Mahendra Builders, against the present Petitioner and
Respondent No. 3, on the ground of sub-letting under
Section 41 of the Presidency Small Causes Court Act, for
eviction of the Petitioner from the premises situated on the
Second Floor of the building known as "CLIFFLET", Worli,
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Mumbai, admeasuring around 4000 sq.ft. carpet area, being
commercial premises (for short 'the suit premises').
3. In the same year of filing the Suit, on 19 th
September, 2001, Mr. Mahendra Shah died. After the death
of Mahendra Shah, on 16th February 2001, his wife Pratibha
and his daughter Shirin filed an Interim Notice No.259 of
2002 in the pending suit, to bring them on record in place of
a deceased Mahendra Shah. So also, they preferred an
Interim Notice No.626 of 2002, seeking an order of
injunction against the Petitioner and Respondent No.3.
4. On 25 October 2002, Pratibha and Shirin filed an
Interim Notice No.760 of 2002, praying therein;
(i) for withdrawal of Interim Notice No.259 of
2002 and;
(ii) also to allow them to Amend the plaint, so
as to correct the misdescription of the plaint by deleting
name of Mr. Mahendra Shah from the proceedings and the
description of original plaintiff as sole proprietor of
Mahendra Builders be substituted as Mahendra Builders
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Partnership Firm instead.
5. While these Interim Applications were argued on
different dates and were pending for disposal, the eviction
suit itself got dismissed for default on 12 June 2003, when
neither the plaintiff nor the defendants were present in the
Court. As soon as Pratibha and Shirin realized that the suit
itself was dismissed, while the arguments on interim notices
were made on different dates, they preferred an Application
being Miscellaneous Notice No.151 of 2004 for Restoration
of Suit and Interim Applications.
6. As Interim Notice No.760 of 2002, the plaintiff has
prayed for withdrawal of Interim Notice No.259 of 2002. By
an Order passed in Interim Notice No.760 of 2002, dated 26
March 2004, the Interim Notice No.259 of 2002 was
withdrawn. While the Interim Notice No.760 of 2002 was
adjourned for hearing on remaining prayers (Amendment).
7. Miscellaneous Notice No.151 of 2004, was
thereafter heard and was made absolute by Order dated 29
March, 2006, thereby the Suit was restored back to file
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along with Interim Notice therein. The Petitioner/defendant
being aggrieved by the Order dated 29 th March, 2006 filed a
Revision Application before the Division Bench of Small
Causes Court challenging the Restoration of Suit. The said
Revision Application was heard by the Division Bench of
Small Causes Court and by its Order dated 7 December,
2006 the said Revision Application was dismissed. Against
the said Order passed by the Division Court, the defendant
being dissatisfied, filed a Writ Petition in this Court. The said
Writ Petition was dismissed by this Court and SLP filed by
the defendant before the Supreme Court was also dismissed.
8. Interim Notice No.760 of 2002 was thereafter
taken up for hearing on remaining prayers by the Court of
Small Causes. In the meanwhile, the Defendant No.1
(Wrangle) filed Suit, to declare them as a tenant of the suit
premises against Mahendra Builders, a Partnership Firm and
its partners Pratibha and Shirin.
9. The Single Judge of the Small Causes Court, heard
Interim Notice No.760 of 2002 on remaining prayers and by
his Order dated 26 September, 2019 allowed the said
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Interim Notice thereby permitting the Respondent No.1 to
carry out the Amendment as sought in the said Interim
Notice.
10. Being aggrieved by the Order dated 26 September,
2019, passed by Single Judge of Small Causes Court, in
Interim Notice No.760 of 2002, Petitioner who is the
Original Defendant No.1 has filed the present Writ Petition.
11. Mr. G.S.Godbole, learned Senior Advocate made
submissions on behalf of the Petitioner.
11.1. Mr. Godbole submitted that after the death of
Original Plaintiff/Mahendra Shah, an application to bring
on record the legal heirs could have been made within 90
days as per the provisions of Article 120 of the Limitation
Act. He further submitted that within a further period of 60
days, an application for condonation of delay could have
been preferred under Article 121 of Limitation Act. He
submitted that in the present proceedings within the
extended period of two months under Article 121, an
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Application in the form of Interim Notice No.259 of 2002
was preferred by the legal heirs of the deceased Mahendra
Shah. Mr. Godbole further submitted that after the statutory
period of 90 days the suit was abated and as within a
further period of two months, an application for restoration
of suit and setting aside of abatement was made and the
same could have been heard on merits and could have been
allowed.
11.2. Mr. Godbole further submitted that the legal heirs
of Mahendra Shah did not think it proper to argue the
Interim Notice No.259 of 2002 for setting aside the
abatement and they withdrew the said interim notice, which
according to Mr. Godbole has proved to be fatal to them as
interim notice to set aside of abatement is withdrawn. The
suit is not on the file of the Court and no further application
for amendment could have been entertained by the Court.
11.3. Mr. Godbole further submitted that under Section
42(c) of the Indian Partnership Act, once the partnership is
at Will and out of the two partners, if one partner dies, the
firm automatically results in dissolution. A subsequent
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application by so called partners thereafter, to add them as a
new partners is not sustainable in law. Even though, it may
be stated in the records of the Registrar of Firms (for short
"ROF") that they become partners from a previous date i.e.
in the present proceedings on the date of the death of the
partner is of no consequence because the firm is not in
existence when one of the two partners has died.
11.4. Mr. Godbole submitted that misdescription could
have been corrected by the Original Plaintiff i.e. Mahendra
Shah, when he was alive which could have been totally
different case and in all probables the said Application could
have been allowed.
11.5. Mr. Godbole further submitted that this is a total
different case where a sole plaintiff files a Suit; and after a
period of 90 days from the death of the sole plaintiff, there
is an automatic abatement and the suit is no more on
records of the Court. And even though the legal heirs or the
partners of the firm believe that the suit should be restored,
the abatement of the suit must first be set aside and only
thereafter it is possible to change the misdescription of the
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suit from a Proprietor Firm to a Partnership Firm.
11.6. Mr. Godbole referred to following judgments on
Article 120 of the Limitation Act to buttress his submissions.
i. Anokhe Lal V/s. Radhamohan Bansal And Others1
ii. Commissioner of Income Tax, Madhya Pradesh and
Nagpur and Bhandara V/s. Seth Govindram Sugar
Mills.2
iii.Commissoner of Income Tax V/s. Sherally
Meherally and Sons.3
iv. Mithailal Dalsangar Singh And Others V/s. Annabai
Devram Kini And Others.4
v. Gururm Singh (D) Thr. Lrs. And Others V/s.
Gurbachan Kaur (D) by Lrs. And Others5.
vi. Deepak Varma V/s. Daya Nand6.
11.7. Mr. Godbole concluded his arguments by
1 (1996) 6 Supreme Court Cases 730 2 AIR1966SC24 3 1997 SCC OnLine Bom 744 4 (2003) 10 SCC 691 5 AIR 2017 SC 2419 6 2019 SCC OnLine Del 8951
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submitting that this Writ Petition deserves to be allowed, in
view of the legal proposition laid down by the Supreme
Court.
12. On the other hand Mr. Aspi Chinoy, learned Senior
Advocate made his submission on behalf of the Respondent
Nos.1 and 2.
12.1. Mr. Chinoy submitted that in this proceedings, the
eviction suit was filed by the Original Plaintiff in the year
2001, and even after 22 years, the trial has not started. He
further submitted that the Petitioner, who is the Defendant
in the eviction suit before the Small Causes Court, has made
all endeavours to see that the suit does not see the light of
the day. He submitted that even an interim notice for
restoration of the suit which was dismissed in default, took
seven years for restoration.
12.2. Mr. Chinoy submitted that the eviction suit filed in
the year 2001, was on the ground of change of user, and
bona fide requirement and the Petitioner is not entitled to
protection under section 3(1)(b) of the Maharashtra Rent
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Control Act as the Petitioner and Respondent No.3
companies both have a share Capital of One Crore or above.
12.3. Mr. Chinoy submitted that document of ownership
of the suit building is of partnership firm by name
"Mahendra Builders" therefore, the suit could only be filed
by the partnership firm Mahendra Builders. Hence, the suit
filed by Mahendra Shah as proprietor of Mahendra Builders
was certainly a misdescribed suit and it was necessary to
bring on record the "Real" Plaintiff.
12.4. Mr. Chinoy submitted that once the Petitioner
themselves had filed R.A.D. Suit in the year 2018, for
declaring them as a tenant and once they themselves had
arrayed the partnership firm along with the present partners
"Pratibha" and "Shirin", as party defendant, it does not lie in
the mouth of the Petitioner now to say that the partnership
firm can't be brought on record in the present pending suit.
12.5. Mr. Chinoy further submitted that the Amendment
once carried out, it relates back to the date of filing of the
suit. Mr. Chinoy referred to Sections 59, 60, 61, 62 and 68
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of the Indian Partnership Act. Mr. Chinoy submitted that
once the "Registrar of Firms" certifies that the new partners
are being inducted in the firm, the said entry goes back to
an earlier date when Mahendra Shah, died.
12.6. Mr. Chinoy further submitted that the Revisonal
Court has correctly recorded its finding while dealing with
the Order passed in Miscellaneous Notice No.151 of 2004,
thereby restoring the suit.
12.7. Mr. Chinoy further submitted that once "Pratibha
and Shirin" realized, the mistake committed by the deceased
Mahendra Shah while filing the suit, the only option for
them was to amend the Plaint by disclosing to the Court that
they are the partners of the Firm "Mahendra Builders" and
the ownership of the building is with "Mahendra Builders".
12.8. Mr. Chinoy further submitted that the
Petitioner/Defendant was well aware as to who is the owner
of the suit building, as the letter dated 5 October 1983, by
which the tenancy was created, was signed by Mr. Mahendra
Shah in the capacity of Partner of M/s. Mahendra Builders.
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He further submitted that therefore, the Petitioner has no
case and they could not take a defence that the suit filed in
the name of Mahendra Builder as proprietor cannot be now
amended.
12.9. Mr. Chinoy further submitted that it is therefore
not left to the Defendant to argue that the firm is not in
existence after the death of Mr. Mahendra Shah.
12.10. Mr. Chinoy further submitted that there can't be
any abatement where the suit itself was misdescribed. Mr.
Chinoy submitted that the test in such a case would be "who
is the Real Plaintiff".
12.11. Mr. Chinoy submitted that provisions of Order 13
Rule 4 are applicable to the present proceedings. Mr. Chinoy
referred to the following three judgments in support of his
submissions:
1. Kurapati Venkata Mallayya and Another Vs. Thondepu Ramaswami and Another 7
2. Jaijai Ram Manoharlal Vs. National Building Material Supply 8
7 AIR 1964 SC 818 8 "1969 " (1) SCC 169
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3. Suraj Bhan Abnil Kumar & Anr Vs. Molu Ram Kapoor Chand of Delhi High Court 9
12.12. Mr. Chinoy submitted that the Judgment and
Order allowing the Amendment, passed by the Small Causes
Court has been correctly passed and no reasons has been
put-forward by the Petitioner to entertain the present Writ
Petition. Therefore, the Writ Petition should be dismissed.
ANALYSIS & CONCLUSION :
13. I have heard the counsel for both the sides, and I
have gone through the documents on record.
14. In the present proceedings the suit for eviction was
filed in the year 2001. The title of the plaint of the said
eviction suit is reproduced herein below:
IN THE COURT OF SMALL CAUSES COURT AT MUMBAI
T.E.& R. SUIT NO. 68/73 OF 2001
MAHENDRA V. SHAH,
Indian Inhabitant, Carrying on business in the
Name and style of M/S. Mahendra Builders
as sole Proprietor
having address at "CLIFFLET",
Sir Pochkhanwalla Road, Worli,
Mumbai - 400 025. ..Plaintiff
9 (1999) SCC OnLine Del 589
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VERSUS
1. M/S BHRAM DEO HOLDING & TRADING LTD
A Company registered under Indian Companies Act)
having its office at on the 2nd floor, "CLIFFLET" )
Sir Pochkhanwalla Road, Worli, Mumbai - 400 025 )
2. M/S WRANGLE INVESTMENT LIMITED )
A Company registered under Indian Companies Act )
having its office at on the 2nd floor, " "CLIFFLET", )
Sir Pochkhanwalla Road, Worli, Mumbai - 400 025 ) ..Defendant
[Emphasis Supplied]
16. Thus undisputably the eviction suit was filed by
a proprietorship firm of M/s "Mahendra Builders" through
Mahendra Shah as a proprietor. After filing of the suit in the
year 2001 itself, Mr. Mahendra Shah died. It is submitted
before me that Mr. Mahendra Shah had many such business
concern by which he was operating. Few of them were (1)
Mahendra Builders, a duly registered Partnership firm. (2)
Mahendra containers Pvt. Ltd, etc.
17. In the present proceedings, the only question to be
answered is whether a Party to whom a right to sue arises,
can they at a subsequent stage be allowed to be added as
Plaintiffs on the ground of misdescription. There is no
dispute that such a misdecription can be allowed. However,
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the issue which is raised by the Petitioner (Original
Defendant) is that once a suit is filed by a person as a
proprietor; after the death of the said person, after the
statutory period to bring on record the legal heirs has
elapsed and the suit been automatically abated, Whether
without setting aside the abatement, there can be
amendment to the plaint on the ground of misdescription of
the plaintiff ?
18. In my opinion the question would also arise
whether any prejudice is caused to the Defendant by the
courts allowing the amendment of misdescription of Plaint.
It will be pertinent to note here that the Petitioner during
the pendency of application for amendment before the
Small Causes Court, on their own went ahead and filed a
suit being R.A.D. Suit, against the partnership firm and its
partners seeking a declaration that they are 'Tenant' of the
suit premises. A copy of Plaint along with exhibits was
tendered in Court on 4 October,2023. The title of the Plaint
is re-produced hereinbelow:-
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IN THE COURT OF SMALL CAUSES COURT AT MUMBAI
R.A.D. SUIT NO. 648 OF 2018
STAMP NO. 1455 OF 2018
M/s. WRANGLE INVESTMENT PVT. LTD.
A Company registered under Companies Act
1956, and having its registered office at
flat no. 301, A Wing, Prakash Kunj, B. P. Road
Opp. Shrinath Apartments Bhayander (East),
Thane 401 105 and also having address at
Clifflet, 2nd floor, Sir Pochkhanwala Road,
Worli, Mumbai 400030. .. Plaintiffs
Versus
1. SMT. PRATIBHA MAHENDRA SHAH,
Age 81 years, Occ: Business,
Having address at Clifflet,
Sir Pochkhanwala Road, Worli,
Mumbai 400030.
2. SMT. SHIRIN MAHENDRA SHAH,
Age 38 years, Occ: Business,
Having address at Clifflet,
Sir Pochkhanwala Road, Worli,
Mumbai 400030.
M/S. MAHENDRA BUILDERS
A Partnership firm, having its office at Clifflet,
Sir Pochkhanwala Road, Worli,
Mumbai 400030. .. Defendants.
[Emphasis Supplied]
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19. Paragraph nos 1,2, and 8 of the Plaint are reproduce
herein below :-
1. One Mr. Mahendra Vithaldas Shah was during his life time the partner of MIs. Mahendra Builders, the third Defendant, the owner and landlord of the building known as Clifflet situated at Sir Pochkhanwala Road, Worli, Mumbai 400030,and situated on land bearing C.S. No. 783-A, Worli Division and hereinafter referred to as "the said Property"
2. The said Mahendra Vithaldas Shah, partner of the third Defendant, passed away on 19.9.2001, leaving behind his widow, the Defendant No.1 and his daughter the Defendant No.2. The Plaintiffs are informed that the Defendants No. 1 and 2 are the partners of the 3rd Defendant. The Plaintiffs have gathered the fact that the Defendants No. 1 and 2 are the partners of M/s. Mahendra Builders, the Defendant No.3, from the correspondence prior to the suit, in respect of the said property and the correspondence addressed by the Defendant No.3. The Plaintiffs have impleaded the Defendants Nos. 1 and 2 abovenamed, as heirs of the deceased landlord Shri Mahendra Shah and also as partners of the Partnership Firm, in the name and style of M/s. Mahendra Builders i.e. the Defendant No.3.
8. As stated herein the said M/s. Mahendra Builders by its then Partner, Shri Mahendra Shah, signed and executed letter dated 5.10.1983, granting to the said Brahmadev Holding & Trading Pvt. Ltd. the permission and entitlement to transfer the tenancy in respect of suit premises.
[Emphasis supplied]
20. In the said declaratory suit, the present
Respondent No. 1 (partnership firm) and its two partners
i.e., Pratibha and Shirin are arrayed as Defendants. So also,
in the said R.A.D. suit, Letter dated 5 October 1983, is
enclosed as Exhibit 'A'. For ease of reference the said letter
dated 5 October 1983, is scanned and reproduced herein
below :
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[Emphasis Supplied]
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21. From the letter dated 5 October 1983 and the
contents of Plaint and cause Title, it can be concluded that
Mr. Mahendra Shah as partner of M/s. Mahendra Builders,
created tenancy of the suit premises in favour of Respondent
No.3 herein. The contents of the said letter dt. 5 October
1983 may not be of much important at this stage for this
court to consider even though some argument was made on
the content of the letter before me.
22. The fact that R.A.D. Suit filed is by the Petitioner
themselves, seeking a declaration of tenancy against the
Partnership Firm M/S. Mahendra Builders in the year 2018,
which shows that, the Petitioners were aware who is the
landlord/owner of suit premises.
23. As far as present eviction proceedings are
concerned, it is the case of the plaintiff in the Plaint that the
suit premises is admeasuring 2000 sq.ft. in a building called
as Clifflet, situated at Worli, Mumbai, and the defendant are
paying rent of Rs. 425/- per month. The eviction suit has
been filed on the ground of subletting, bonafide
requirement and no protection under the Rent Act to the
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defendant company, as its paid up capital is more than One
Crore.
24. Pratibha and Shirin are not only the partners of
the firm Mahendra Builders, but are also the legal heirs of
deceased Mahendra Shah. Therefore, it is nobody's case that
there are two different entities who have approached the
Court to add them as Plaintiffs. The only issue would be in
what capacity they would be termed as plaintiff whether it
will be they, as partners of M/S. Mahendra Builders or they
as legal heirs of deceased Mr. Mahendra Shah? This
becomes a question to be answered because the suit was
filed by Mr. Mahendra Shah mis-describing him as
proprietor of M/s. Mahendra Builders.
25. The partners of Mahendra Builders, Pratibha and
Shirin have brought on record a copy of conveyance of the
suit building 'Clifflet' of the year 1978, in favour of M/s.
Mahendra Builders. Therefore, there is no doubt that the
ownership of the building was with the firm called as M/s.
Mahendra Builders.
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26. This coupled with the fact that the Original
Tenancy letter dated 5 October, 1983 was addressed by M/s.
Mahendra Builders through its partner Mahendra Shah. It is
a fact known to the Petitioner/ Original Defendant/Tenant
from the date of creation of tenancy. After Maharashtra Rent
Act,1999 came into operation, there is no protection to a
company whose share capital is more than One Crore. It is
the case of the Plaintiff in eviction suit that
Petitioner/Defendant would fall under this category.
27. As far as the issue about death of partner of a
partnership firm having two partners is concerned, the
Partnership Deed in the present proceeding has not been
produced. The Application filed before the Registrar of
Firms, states that the Pratibha and Shirin were brought in as
partners from 19 September 2002. On the same date, it is
shown that Mahendra Shah has been deleted as a partner
pursuant to his death.
28. Section 63 of the Indian Partnership Act makes it
clear that such a dissolution can be considered. Therefore, a
situation does not arise that on death of Mahendra Shah the
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partnership firm cease to exist. So also it will be pertinent to
note, this entire facts were to the knowledge of the
Petitioner/Defendant. However, they have been taking a
stand in the Small Causes Court about abatement of
eviction suit and even then they went ahead and filed a suit
for declaration of tenancy before the Small Causes Court,
Bombay from the partnership firm and its partners in the
year 2018. Therefore, it would not lie in the mouth of such a
Petitioner/Tenant to raise such an issue.
29. According to the Petitioner, if the suit was abated then
there could not have been any further dismissal of the suit
and further restoration of the suit. The eviction suit in the
present proceedings has been filed admittedly in the year
2001; and from 2001 till 2023 it has been pending for Trial.
30. The Provisions of C.P. C., Order 1, Rule 10, reads as
under :
Order 1, Rule 10. Suit in the name of wrong Plaintiff -
(1) Where a suit has been instituted in the name of the wrong person as plaintiff or where it is doubtful whether it has been instituted in the name of the right plaintiff, the Court may at any stage of the suit, if satisfied that the suit has been instituted through a bonafide mistake, and that it is necessary for the
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determination of the real matter in dispute so to do, order any other person to be substituted or added as plaintiff upon such terms as the Court thinks just.
(2) Court may strike out or add parties.--The Court may at any stage of the proceedings, either upon or without the application of either party, and on such terms as may appear to the Court to be just, order that the name of any party improperly joined, whether as plaintiff or defendant, be struck out, and that the name of any person who ought to have been joined, whether as plaintiff or defendant, or whose presence before the Court may be necessary in order to enable the Court effectually and completely to adjudicate upon and settle all the questions involved in the suit, be added.
(3) ......................
(4)....................
(5).....................
Therefore, the court has enough power of satisfied that the
suit has been instituted in the name of wrong person as
Plaintiff, through a bonafide mistake, order any other
person to be substituted as Plaintiff.
31. Mr. Godbole referred to the Supreme Court judgment
of Anokhelal (supra) to support his argument. In the said
judgment the suit for eviction was filed by landlord against
tenant (Partnership Firm). On the death of one partner, his
son filed an application under Order 1 Rule 10(2), which
was rejected. Thereafter, second application was filed under
the provisions of Order 30, Rule 4 of CPC for getting himself
impleded. The said second application was allowed, when
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infact the suit was already decreed and even the Appeal
filed Challenging the decree was disposed of confirming the
decree. Hence, in this background, the Supreme Court set
aside the order of impleadment.
32. The Second judgment refereed was of Seth Govindra
Sugar Mills (supra) decided by the Supreme Court. The facts
in the said judgment were that one of the two partners died
on 9 December, 1945. The another partner continued
business in the name of the firm. For the assessment year
1950-51, the said firm applied for registration on the basis
of agreement of Partnership Firm dated 28 September, 1943.
The income tax authorities refused registration on the
ground that after the death of one partner, the Partnership
Firm is dissolved and thereafter another partner, and the
minors could be treated only as an association of persons.
The Supreme Court answered the two questions referred to
as : (i) For the assessment year 1950-51 the status of
assesses was that of a firm within the meaning of Section
16(1) (b) of Income Tax Act. (ii)The tribunal misdirected
itself in law in reaching the conclusion that the parties could
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not be regarded as partners.
33. Therefore the facts in both the judgments are quite
different then the facts in the present proceedings,
therefore, according to me the ratio laid down by Supreme
Court in both the judgments could not be applicable to the
present proceedings.
34. Another judgment referred by Mr. Godbole is of
Sherally Meharralyy (supra) which was decided by the
Division Bench of this Court. The facts in this judgment
were that on 27 June, 1977, partner died, and on 5
September, 1977 the sole surviving partner entered into a
fresh deed of Partnership with the widow. Therefore,
according to Assessee two different firms existed during
these two periods. However, the Income Tax Officer did not
accept this contention of assessee as he was of the opinion
that the firm did not stand dissolved on death of one of the
two partners and the old Partnership continued to exist.
According to him it was a case of mere change of
constitution of firm as contemplated by Section 187 of
Income Tax Act.
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35.1. Even the fact in Sherally Meharralyy (supra) were
quite different than that in the present proceedings
therefore, the ratio laid down in the facts of Sherallya
Meharralyy (supra) cannot be made applicable to the
present proceedings where the facts are quite different.
36.1. In Mithailal Dalsangar (supra) the Supreme Court held
that the abatement of suit occurs automatically by operation
of law, on failure to move an application for bringing the
LR's on record within the prescribed period of limitation.
36.2. In Gurnam Singh (supra) the Supreme Court held that
before the Second Appeal could be taken up for hearing, the
Appellant and two Respondents had expired, therefore
judgment in Second Appeal passed by the High Court
against deceased defendant is without jurisdiction and
hence nullity.
36.3. In Dipak Varma (supra) Single Judge of Delhi High
Court held that after a statutory period as contemplated in
Article 120 and 121 of the Limitation Act is over there is an
automatic abatement.
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36.4. I am bound by the ratio laid down in the above
judgments by the Supreme Court. But in the present
proceedings, the suit itself was filed by a wrong person
therefore, there was a misdescription.
37.1. The judgment referred by the Respondent /
landlord of Kurapati V Mallayya (supra), in which the
Supreme Court held that where there is a case of
misdescription of parties, it is open to the Court to allow the
Amendment to the plaint at any time and the question of
limitation would not arise in such a case.
37.2. Similarly in the case of Jai Jai Ram Manohar Lal
(supra) the Supreme Court held that a party cannot be
refused a relief because of some mistake and negligence.
The Court always gives relief to Amend pleadings to a party
unless it is satisfied that the party applying has acted
malafide. Further, it was held that since the name in which
the action was instituted was merely a misdescription of the
Original Plaintiff, no question of limitation arises; the plaint
must be deemed on Amendment to have been instituted in
the name of real plaintiff, on the date of which it was
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originally instituted.
37.3. In the judgment of Surajbhan Anil Kumar
(supra) Delhi High Court held that it is established by the
record that on the date of the filing of the suit, the plaintiff
was a proprietorship firm and not a Partnership Firm.
Therefore, it is cannot be said that the suit was instituted by
an Unregistered Partnership Firm. At best it is a case of mis-
description of a party, mainly the plaintiff and if in order to
describe a plaintiff properly, an Application is filed in the
Court seeking for Amendment of the plaint such an
Application is required to be allowed.
37.4. I am of the opinion that the ratio laid down by
the above three judgments is squarely applicable to the facts
of the present proceedings.
38. For the reasons recorded above the view taken by
the Single Judge of Small Causes Court of allowing the
Interim Notice No.760 of 2004, thereby permitting the
Plaintiff to carry out amendment in view of the ratio laid
down by Supreme Court and on the ground that the
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Conveyance is in favour of the Partnership firm, according to
me is a correct view. In my opinion there remains no doubt
that the proposed amendment is essential for the purpose of
determining the real question in controversy between the
parties.
39. Therefore, this Writ Petition is dismissed. No
cost.
40. The hearing of T.E.&R. Suit No. 68/73 of 2001, is
expedited. The Judge of the Court of Small Causes Bombay,
to make an endeavour to hear and to dispose of Suit within
a period of 12 months from today. All the parties to the suit
will co-operate and will not seek unnecessary adjournments.
41. All parties to act on authenticated copy of this
Order.
(RAJESH S. PATIL, J.)
42. At this stage, advocate for the Petitioner seeks stay
to the operation of this order. Request made is rejected.
(RAJESH S. PATIL, J.)
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