Rights of suit on death of partner
Full Text
(1) Notwithstanding anything contained in section 45 of the Indian Contract Act, 1872, where two or more persons may sue or be sued in the name of a firm under the foregoing provisions and any of such persons dies, whether before the institution or during the pendency of any suit, it shall not be necessary to join the legal representative of the deceased as a party to the suit.
(2) Nothing in sub-rule (1) shall limit or otherwise affect any right which the legal representative of the deceased may have—
(a) to apply to be made a party to the suit, or
(b) to enforce any claim against the survivor or survivors.
Plain English Summary
Non-obstante clause overriding Section 45 of the Contract Act, establishing that the death of a partner prior to or during a firm suit does not abate the suit, dispensing with the necessity of impleading the deceased partner's legal representatives.
Key Legal Elements
- Non-Obstante Override: Overrides Section 45 Indian Contract Act (devolution of joint rights).
- Non-Abatement: Firm litigation continues uninterrupted by the death of any partner.
- Dispensation of LRs: No obligation on plaintiff or firm to bring legal heirs on record under Order XXII.
- Preservation of Heirs' Rights (Sub-rule 2): Heirs can voluntarily apply to join or sue surviving partners for accounting.
Practical Note
Defeating Abatement Objections in Partnership Suits: 1. Supreme Court Precedent: In Upper India Cable Co. v. Bal Kishan (1984) 3 SCC 462, the Supreme Court confirmed that where a suit is instituted against a firm, the death of one partner during pendency does not cause abatement of the suit or appeal under Order XXII; the suit continues validly against the surviving partners. 2. Execution Caution: If a decree is obtained against the firm without impleading the deceased partner's LRs, execution can be levied against the firm's assets and surviving partners' personal assets, but NOT against the separate personal estate of the deceased partner (Order XXI Rule 50).
हिंदी पाठ
(1) भारतीय संविदा अधिनियम, 1872 की धारा 45 में किसी बात के होते हुए भी, जहां पूर्वगामी उपबंधों के अधीन दो या अधिक व्यक्ति किसी फर्म के नाम से वाद ला सकते हैं या उन पर वाद लाया जा सकता है और ऐसे व्यक्तियों में से किसी की मृत्यु, चाहे वाद संस्थित करने से पूर्व या किसी वाद के लंबित रहने के दौरान हो जाती है, वहां मृतक के विधिक प्रतिनिधि (Legal Representative - LR) को वाद में पक्षकार के रूप में संयोजित करना आवश्यक नहीं होगा।
(2) उप-नियम (1) की कोई भी बात ऐसे किसी अधिकार को सीमित या अन्यथा प्रभावित नहीं करेगी जो मृतक के विधिक प्रतिनिधि को—
(क) वाद में पक्षकार बनाए जाने के लिए आवेदन करने का, अथवा
(ख) उत्तरजीवी या उत्तरजीवियों के विरुद्ध किसी दावे को प्रवर्तित कराने का हो।