Service of summon
Uday Kumar
(Querist) 25 November 2014
This query is : Resolved
Dear Sir,
In a Civil Suit Defendant no 1 is company , Defendant no 2 is Partner
Summon was issued to both and Defendant no 2 appeared but summon to Defendant no 1 not served and Process is coming as No such Company Exist.
My Question is why Summon to the D2 cannot be presumed to be served to the Company/D1 as well.
Any Law Judgment on this Point.
With Regards
Uday Kumar
M V Gupta
(Expert) 26 November 2014
Under law company is regarded as juridical and independent person distinct from the share holders. Therefore has to be served summons separately. You sated that D2 is a partner.Partners do not exist in a company.D2 must be a Director in the Company. Check the facts.
Kuummaar AS
(Expert) 26 November 2014
Gupta Ji is right. Company is a separate legal person distinct from its members. Moreover, a Company does not have partners.
What do you mean by
"...and Process is coming as No such Company Exist."
Uday Kumar
(Querist) 27 November 2014
Hello Sirs
Thanks for your valuable suggestion, I re clarify hereunder
1. Company means Partnership Firm
2. Company/Partnership Firm Closed and partner appeared before court
3. No Service to the Partnership Firm / company is be returned with remark as No Such Company Exist, Hence we are unable to effect proper service to the Partnership Firm / Company
4. I have one option of Publication but that is too costly in a suit U/O 37
Please advise your expert view sirs
With Regards
Uday Kumar
M V Gupta
(Expert) 27 November 2014
1. Company does not mean Partnership Firm. Should I understand that u are using the word "company" as interchangeable with Partnership Firm? If so it is not correct.
2. If partnership is closed, there is no need to implede it as party defendant in the suit. The suit should be filed only on the partners with suitable pleading that they were partners in the firm which is now dissolved.
3. As the Firm has been dissolved, it would have closed its offices/place of business. Hence the return of the summons unserved.
4. Amend the plaint deleting the name of the Firm as one of the defendants, as it no longer exists.
Uday Kumar
(Querist) 01 December 2014
Dear Mr. MV Gupta
Thanks and information provided by you is helpful. However, My question is how Civil Liability caste on the partner for the work conducted in their firm, Defendant/Partner has already taken a plea that Work done in the Firm. I understand they are taking bald plea but if we would have any just judgment stating that Form has been closed hence civil liability cast on the Partner who was responsible for acts and Deeds
Please assist sir
With Regards
Uday Kumar
M V Gupta
(Expert) 02 December 2014
You are raising a new issue. Under partnership Act, Partners are personally liable to repay all the debts of the Firm even if it has been dissolved. Their liability is unlimited and the creditors can proceed against their personal property to realize their dues.
