Suit against person carrying on business in name other than his own
Full Text
Any person carrying on business in a name or style other than his own name, or a Hindu undivided family carrying on business under any name, may be sued in such name or style as if it were a firm name, and, in so far as the nature of such case permits, all rules under this Order shall apply accordingly.
Plain English Summary
Permits third parties to sue a sole proprietorship operating under a trade name or a Hindu Undivided Family (HUF) business in its business trade name, while strictly disallowing the proprietor or HUF from instituting a suit as plaintiff in that assumed trade name.
Key Legal Elements
- Defensive Application Only: Sole proprietor / HUF may be SUED in trade name ('may be sued').
- Plaintiff Prohibition: Sole proprietor CANNOT SUE as plaintiff in trade name; proprietor must sue in personal name.
- HUF Business Inclusion: Specifically includes joint Hindu family businesses operating under trade styles.
- Application of Order XXX Rules: Summons, service, and discovery rules apply mutatis mutandis.
Practical Note
The Classic Sole Proprietorship Trap — Supreme Court Jurisprudence: 1. Supreme Court Landmark — Ashok Transport Agency: In Ashok Transport Agency v. Awadhesh Kumar (1998) 5 SCC 567 and Rasiklal Manikchand Dhariwal v. M.S.S. Food Products (2012) 2 SCC 196, the Supreme Court settled that a sole proprietorship is not a legal entity. Under Rule 10, it can be sued in the trade name, but it CANNOT SUE in the trade name. 2. Incurable Defect if Sued in Trade Name: If a proprietor files a suit styled 'M/s National Traders v. Defendant', the suit is incompetent. It must strictly be titled: 'A.B., carrying on business under the name and style of M/s National Traders'. Opponents should immediately raise a preliminary objection to dismiss the suit if filed purely in the business name.
हिंदी पाठ
अपने स्वयं के नाम से भिन्न किसी नाम या शैली में कारबार चलाने वाला कोई भी व्यक्ति, अथवा किसी भी नाम के अधीन कारबार चलाने वाला कोई हिंदू अविभक्त कुटुंब (HUF), ऐसे नाम या शैली में ऐसे वादग्रस्त किया जा सकेगा मानो वह किसी फर्म का नाम हो, और जहां तक ऐसे मामले की प्रकृति अनुज्ञा दे, इस आदेश के अधीन सभी नियम तदनुसार लागू होंगे।