- (1.) Heard Sri R. N. Singh, Senior Advocate, assisted by Sri A. K. Goel for petitioner, and Sri Ravi Kant for respondent No. 2, Standing Counsel represents respondent No. 1.
(2.) Petitioner has challenged orders dated 8-8-2002 passed by Assistant Registrar, Firms Societies and Chits, Allahabad rejecting petitioner's representation; and the registration of respondent No. 2 firm dated 12-10-2001 on the basis of declaration in Form-VII dated 3-10-2001 and has prayed for a direction to Assistant Registrar Firms Societies and Chits, Allahabad not to give effect to the impugned registration dated 12-10-2001.
(3.) The facts giving rise to this case are that M/s. Kesarwani Zarda Bhandar, Village and Post/Sahson, Allahabad-respondent No. 2 was reconstituted by partnership deed executed on 4-4-1998 between 16 partners, in accordance with the provisions of the Indian Partnership Act, 1932 (hereinafter referred to as the 'Act'). Clauses 5, 22, 24, 25 and 26 of the Partnership deed relevant for the purpose of this case are quoted as below : "5. That the duration of the partnership shall be at will and subject to the provisions of Indian Partnership Act, 1932. 22. That the parties to this deed may add and increase number of the partners and may also reduce the number of partners and may also modify/amend the existing terms and conditions and also modify their sharing ratio and may also add any other terms and conditions as they may consider necessary from time to time. 24. That none of the partners shall transfer his/her interest or share in the firm to any outsider but they may do so inter se between the partners and this firm. 25. That the retiring or outgoing partners shall be paid only the credit balance in his capital account if any in the terms within 6 months of his/her retirement or from the date he/she ceases to be a partner of the firm. 26. That in no event the partnership shall be dissolved but the same shall continue with the remaining partners or with any modification in the number of partners, but in no case any outsider will be inducted with the partners in the firm.";