Filing of a suit against Partnership Firm & Its Partners: Decree passed against a Firm is binding on all persons who were partners

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Filing of a suit against Partnership Firm & Its Partners:  Decree passed against a Firm is binding on all persons who were partners 

 

“A decree passed against a Firm is binding on all persons who were partners on the day when the cause of action accrued. That being the position, at best, the consequence of a new person coming in would only mean that he would not be entitled to the fruits of the decree if any obtained by the persons who were partners at the time of the accrual of the cause of action,”

“A firm is a compendious collective name for the individual members who constitute the firm. The Code, however, does not treat the firm as a juristic person. It only confers a privilege on the individuals constituting the firm to sue or be sued in the name of the firm.”

Hon’ble High Court of Kerala stated in its judgement dated 16.06.2022 in the matter of M/S C.S Company & Ors v. Kerala State Electricity Board & An

 

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