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Madras High CourtWP(MD)/20651/2022allowed

Mohan v. The District Registrar (Administration)

2023-12-15Honourable Mr Justice G.R.Swaminathan5 pages

BEFORE THE MADURAI BENCH OF MADRAS HIGH COURT DATED : 15.12.2023

CORAM

THE HONOURABLE MR.JUSTICE G.R.SWAMINATHAN and W.M.P.(MD)Nos.14978 & 14979 of 2022 Mohan ... Petitioner Vs.

1.The District Registrar (Admin), Office of the District Registrar, District Court Complex, Trichy.

2.The Assistant Director, Directorate of Industrial Safety & Health, Trichy.

3.Vasumathi 4.Vijayalakshmi 5.Gowtham ... Respondents Prayer : Writ Petition filed under Article 226 of the Constitution of India, praying this Court to issue a Writ of Mandamus, to call for the entire records relating to the proceeding of the 1st respondent in Na.Ka.No.15502/A2/2021 dated 18.08.2022 and quash the same and consequently direct the 1st respondent to conduct enquiry and take a decision on merits uninfluenced by the prevailing litigations among the sharers / partners within a time frame that may be stipulated by this Court and pass such further or other orders as this Court.

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For Petitioner : Mr.S.Vinod Sathiya Lazar For Respondents : Mr.M.Prakash Additional Government Pleader for R1 & R2 : Mr.T.Vadivelan for R3 to R5

ORDER

Heard both sides.

2. The case on hand relates to renewal of registration of the firm known as M/s.Venkatachalapathy & Co. It is a rice mill started as a partnership firm way back in the year 1942. It was registered in the year 1944 (Registration No. 24/1944). Registration was periodically renewed. It is stated that till the year 2005, there was no dispute among the partners. There were 20 partners. All of them are the lineal descendants of the original partners. When the petitioner applied for renewal of the factory license, the second respondent informed the petitioner that he has received objection from R3 to R5. It is seen that R3 and 19 others have filed O.S.No.229 of 2022 before the District Judge, Trichirappalli for dissolution of the firm and for retention of the accounts. Citing this, the first respondent had declined to renew the registration. The firm is a on going concern. If the renewal of the registration is refused, activities will be come to a grinding halt. No purpose will be served. Section 12(c) of the 2/5

Indian Partnership Act, 1932 is as follows:- THE CONDUCT OF THE BUSINESS. Subject to contract between the partners - ......

(c) any difference arising as to ordinary matters connected with the business may be decided by a majority of the partners, and every partner shall have the right to express his opinion before the matter is decided, but no change may be made in the nature of the business without the consent of all the partners;

3. In this case, there are 20 partners. Out of them, three are on the one side and 17 are on the other side. I do not want to go into the merits of the matter. The rights of the parties can very well be adjudicated in the suit. When the matter was referred for mediation, the value of the firm was quantified at Rs.4,65,64,000/-. It can be tentatively inferred that each partner or his legal heirs will be entitled to not less than Rs.25,00,000/-. The petitioner in order to show his bonafides undertakes to deposit a sum of Rs.75,00,000/- to the credit of O.S.No.229 of 2022 on the file of the District Munsif Court, Trichirappalli. Upon the petitioner making such deposit, the first respondent will renew the registration of the firm. The renewal will date back to the date of filing of the renewal application. It is for the jurisdictional civil Court to pass an appropriate order for disbursement of the said amount. I make it clear that an equitable order has been passed only keeping in mind the interests of all the persons concerned. The direction to the first respondent to renew the 3/5

registration of the firm will not come in the way of the jurisdictional Civil Court from taking an appropriate decision.

4. The Writ Petition is allowed on these terms. No costs. Consequently, connected miscellaneous petitions are closed. 15.12.2023 Index : Yes / No Internet : Yes/ No rmi To 1.The District Registrar (Admin), Office of the District Registrar, District Court Complex, Trichy.

2.The Assistant Director, Directorate of Industrial Safety & Health, Trichy.

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G.R.SWAMINATHAN, J.

rmi 15.12.2023 5/5