Execution of decree against firm
Full Text
(1) Where a decree has been passed against a firm, execution may be granted—
(a) against any property of the partnership;
(b) against any person who has appeared in his own name under rule 6 or rule 7 of Order XXX or who has admitted on the pleadings that he is, or who has been adjudged to be, a partner;
(c) against any person who has been individually served as a partner with a summons and has failed to appear:
Provided that nothing in this sub-rule shall be deemed to limit or otherwise affect the provisions of section 30 of the Indian Partnership Act, 1932 (9 of 1932).
(2) Where the decree-holder claims to be entitled to cause the decree to be executed against any person other than such a person as is referred to in sub-rule (1), clauses (b) and (c), as being a partner in the firm, he may apply to the Court which passed the decree for leave, and where the liability is not disputed, such court may grant such leave, or, where such liability is disputed, may order that the liability of such person be tried and determined in any manner in which any issue in a suit may be tried and determined.
(3) Where the liability of any person has been tried and determined under sub-rule (2), the order made thereon shall have the same force and be subject to the same conditions as to appeal or otherwise as if it were a decree.
(4) Save as against any property of the partnership, a decree against a firm shall not lease, render liable or otherwise affect any partner therein unless he has been served with a summons to appear and answer.
(5) Nothing in this rule shall apply to a decree passed against a Hindu Undivided Family by virtue of the provisions of rule 10 of Order XXX.
Plain English Summary
Regulates execution of decrees passed against partnership firms: allows automatic execution against firm assets and acknowledged/served partners, requiring leave of court and trial of disputed liability for other alleged partners.
Key Legal Elements
- Execution Against Firm Assets: All partnership assets automatically liable.
- Personal Liability of Served Partners (Sub-rule 1(b) & (c)): Partners who appeared or were individually served.
- Leave of Court for Hidden/Sleeping Partners (Sub-rule 2): Prerequisite before pursuing unserved partners.
- Trial of Partner Liability: Disputed partnership status tried like a regular civil suit.
- Inapplicable to HUF Businesses (Sub-rule 5): Preserves Hindu law business distinctions under Order XXX Rule 10.
Practical Note
Enforcing Firm Decrees Against Partners Individually: 1. Landmark Ruling - Gambhir Mal Pandiya v. J.K. Jute Mills Co. Ltd. AIR 1963 SC 243 & Ashok Transport Agency v. Awadhesh Kumar (1998) 5 SCC 567: A decree against a firm can be executed against partnership property without leave. However, to execute against the personal property of a partner who was neither served with summons nor appeared, the decree-holder must apply for leave under Rule 50(2). 2. Strategic Step: In the leave petition, produce the Form A/Form C from the Registrar of Firms showing the person was a partner at the date of accrual of the cause of action.
हिंदी पाठ
(1) जहां किसी फर्म के विरुद्ध डिक्री पारित की गई है, वहां निष्पादन मंजूर किया जा सकेगा—
(क) भागीदारी की किसी भी संपत्ति के विरुद्ध;
(ख) ऐसे किसी व्यक्ति के विरुद्ध जो आदेश 30 के नियम 6 या नियम 7 के अधीन अपने नाम से उपसंजात हुआ है अथवा जिसने अभिवाक् में स्वीकार किया है या भागीदार निर्णित हुआ है;
(ग) ऐसे किसी व्यक्ति के विरुद्ध जिसे भागीदार के रूप में वैयक्तिक रूप से समन की तामील की गई थी और वह उपसंजात होने में असफल रहा।
(2) जहां डिक्रीदार पूर्वोक्त के अतिरिक्त किसी अन्य व्यक्ति को भागीदार बताकर उसके विरुद्ध निष्पादन चाहता है, वहां वह न्यायालय से इजाजत (Leave of Court) मांग सकेगा; विवाद होने पर उसके दायित्व का विचारण वाद के विवाद्यक के समान किया जाएगा।
(3) ऐसा आदेश डिक्री के समान होगा और अपीलीय होगा।
(4) फर्म की संपत्ति के सिवाय, किसी भी भागीदार को तब तक उत्तरदायी नहीं बनाया जाएगा जब तक कि उसे समन की तामील न हुई हो।
(5) यह नियम हिन्दू अविभक्त कुटुंब (HUF) पर लागू नहीं होगा।