Appearance under protest
Full Text
(1) Any person served with summons as a partner under rule 3 may enter an appearance under protest, denying that he was a partner at any material time.
(2) On such appearance being made, either the plaintiff or the person entering the appearance may, at any time before the date fixed for hearing and final disposal of the suit, apply to the Court for determining whether that person was a partner of the firm and liable as such.
(3) If, on such application, the Court holds that he was a partner at the material time, that shall not preclude the person from filing a defence denying the liability of the firm in respect of the claim against the defendant.
(4) If the Court, however, holds that such person was not a partner of the firm and was not liable as such that shall not preclude the plaintiff from otherwise serving a summons on the firm and proceeding with the suit; but in that event, the plaintiff shall be precluded from alleging the liability of that person as a partner of the firm in execution of any decree that may be passed against the firm.
Plain English Summary
Comprehensive procedure inserted by Act 104 of 1976 allowing a wrongly served person to appear under protest denying partnership, enabling summary trial of the preliminary issue of partnership, and barring personal execution against them under Order XXI Rule 50 if held not to be a partner.
Key Legal Elements
- Appearance Under Protest (Sub-rule 1): Denial of partnership status at the material time.
- Preliminary Adjudication (Sub-rule 2): Either party can apply to determine the disputed partnership issue.
- Merits Defense Preserved (Sub-rule 3): If held to be a partner, they retain the right to contest the firm's liability on the merits.
- Execution Immunity (Sub-rule 4): If held not to be a partner, the plaintiff is forever barred from executing any decree against that person's individual assets.
Practical Note
Protecting Falsely Implicated Alleged Partners: 1. Move Immediately Under Protest: If an erstwhile partner who retired years earlier, or a third party erroneously shown as partner, receives summons, do NOT file a regular written statement. File a Memo of Appearance Under Protest under Rule 8(1). 2. Apply for Preliminary Determination: Immediately file an application under Rule 8(2) for determination of the preliminary issue. Once the court rules that the client was not a partner, sub-rule (4) completely protects their personal bank accounts and properties from Order XXI Rule 50 execution.
हिंदी पाठ
(1) नियम 3 के अधीन भागीदार के रूप में समन पाने वाला कोई भी व्यक्ति इस बात से इनकार करते हुए कि वह किसी तात्विक समय पर भागीदार था, आपत्ति सहित उपसंजाति (Appearance under protest) दर्ज कर सकेगा।
(2) ऐसी उपसंजाति किए जाने पर, या तो वादी अथवा ऐसी उपसंजाति करने वाला व्यक्ति, वाद की सुनवाई और अंतिम निपटारे के लिए नियत तारीख से पूर्व किसी भी समय, यह अवधारित करने के लिए न्यायालय से आवेदन कर सकेगा कि क्या वह व्यक्ति फर्म का भागीदार था और उस रूप में दायी था।
(3) यदि ऐसे आवेदन पर न्यायालय यह अभिनिर्धारित करता है कि वह तात्विक समय पर भागीदार था, तो वह बात उस व्यक्ति को प्रतिवादी के विरुद्ध दावे के संबंध में फर्म के दायित्व से इनकार करने वाली प्रतिरक्षा (लिखित कथन) दाखिल करने से प्रवारित नहीं करेगी।
(4) किंतु यदि न्यायालय यह अभिनिर्धारित करता है कि ऐसा व्यक्ति फर्म का भागीदार नहीं था और उस रूप में दायी नहीं था, तो वह बात वादी को फर्म पर अन्यथा समन की तामील कराने और वाद में आगे बढ़ने से प्रवारित नहीं करेगी; किंतु उस दशा में वादी फर्म के विरुद्ध पारित की जाने वाली किसी डिक्री के निष्पादन में उस व्यक्ति के फर्म के भागीदार के रूप में दायित्व का अभिकथन करने से प्रवारित रहेगा।