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Report No. 54

Chapter 30

Suits by or against Firms

Introductory

30.1. Order 30 deals with suits by or against firms.

The main provision authorises suing of partners in the name of the firm. Disclosure of partners' name is provided for, as also service. Appearance of partners is dealt with. There is no appearance except by partners. Appearance under protest is allowed. A suit against a person as carrying on business in a name other than his own is governed by similar provisions.

Order 30, rule 2

30.2. An amendment has been made to Order 30, rule 2(3) by the High Court of Orissa under which the names of the partners disclosed in the manner stated in Order 30, rule 2(1) "shall appear in the decree". The question whether this amendment should be adopted for facilitating the execution of the decree against individual partners was considered in the earlier Report,1 but it was felt that there was no need for any such provision.

1. 27th Report, note on Order 30, rule 2.

30.3. We are, however, of the view that the Orissa amendment is a useful one, and the particulars proposed to be added may come in handy at the stage of execution.

Recommendation

30.4. Accordingly, we recommend that the proviso to Order 30, rule 2 should be revised as follows:-

"Provided that all proceedings shall nevertheless continue in the name of the firm, but the name of the partners disclosed in the manner stated in sub-rule (1) shall be entered in the decree."

1. 27th Report, note on Order 30, rule 2.







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