An HUF can not enter into partnership but the manager or Kurta acting on behalf of HUF can enter into a valid partnership

Last updated: 16 January 2012

Court :
HIGH COURT OF DELHI

Brief :
The respondent filed the suit for recovery of `5,89,434/- towards agent commission against the appellants claiming himself to be an agency of defendant No.3 (in the suit) an Italian Company, in India. Appellants floated a global tender for purchase of two hydraulic Crankshaft Grinding Machines on 24.09.1986. Respondent gave an offer dated 22.09.1986 for two machines. Earlier the respondent had supplied four similar machines to the appellants vide their order dated 05.02.1985. Later on the appellants sought some clarifications and amendment in terms if four machines were purchased instead of two. Respondent vide letter dated 14.08/1987 did the needful and informed the appellants that the price of machine would be the same and be multiplied by four in place of two and discount of 5% on agency commission of 15% would be valid if (i) entire order is placed on the respondent and (ii) 100% agency commission released on presentation of shipping documents. Vide letter dated 09.11.1987, defendant No.3 in the suit, informed the appellants that respondent would not accept any amount less than already offered by them as their work involved lot of expenditure.

Citation :
COAL INDIA LTD. & ANR. ….Appellants.Through: Mr.Anip Sachthey with Mr.Mohit Paul & Ms.Shagun Matta, Advocates versus CONTINENTAL & EASTERN AGENCIES …..Respondents Through: Mr.A.B.Dial,Sr.Adv. with Ms.Ananya Datta, Advocate