Can another activity of registration of a Proprietary Firm be initiated, when activity of dissolution of a Partnership Firm is pending?

This judgement addresses whether a Chartered Accountant can register their sole proprietorship while the dissolution of their previous partnership firm is still in progress. The petitioner sought to have the dissolution of the firm 'R Menon and Associates' recorded and their name removed from its records. The court considered the circumstances surrounding the partnership's formation, its 'at will' duration, and the reasons for its dissolution.

IN THE HIGH COURT OF KERALA AT ERNAKULAM

PRESENT

THE HONOURABLE MR.JUSTICE N.NAGARESH

MONDAY, THE 26TH DAY OF APRIL 2021/6TH VAISAKHA, 1943

WP(C).No.5833 OF 2020(D)

PETITIONER:

JOSHI JOHN, AGED 54 YEARS, 
S/O. MR. JOHN J ALAPATT, NEPTUNE 4E,
TRINITY WORLD, CHITTETHUKARA,
ERNAKULAM, PIN - 682 037.
BY ADV. SRI.V.M.KRISHNAKUMAR

RESPONDENTS:

1 THE INSTITUTE OF CHARTERED ACCOUNTANTS OF 
INDIA, REPRESENTED BY ITS SECRETARY,
ICAI BHAWAN, INDRAPRASTHAMARG,
POST BOX NO.7100, NEW DELHI - 110 002.

2 ANITHA C. SHENOY, W/O. B.KISHORE BHAKTA, 
1/3814, “AMRITHA”, EAST HILL ROAD,
KOZHIKKODE

3 GIRIJA P.K., KRESTON MENON CHARTERED 
ACCOUNTANTS, P O BOX.55535, LEVEL 15,
LAKE CENTRAL AT THE BAY, MARASI DRIVE, 
BUSINESS BAY, DUBAI, UNITED ARAB EMIRATES.

R1 BY ADV. SRI.M.GOPIKRISHNAN NAMBIAR
R1 BY ADV. SRI.K.JOHN MATHAI
R1 BY ADV. SRI.JOSON MANAVALAN
R1 BY ADV. SRI.KURYAN THOMAS
R1 BY ADV. SRI.PAULOSE C. ABRAHAM
R1 BY ADV. SMT.ANN MARIA FRANCIS
R2-R3 BY ADV. SRI.B.S.SURAJ KRISHNA
R2-R3 BY ADV. SHRI.FEBIN RAJ T.S.

THIS WRIT PETITION (CIVIL) HAVING BEEN FINALLY
HEARD ON 26-04-2021, THE COURT ON THE SAME DAY DELIVERED
THE FOLLOWING:

N. NAGARESH, J.
 
W.P.(C) No.5833 of 2020

Dated this the 26th day of April, 2021

J U D G M E N T

The petitioner, who is a Chartered Accountant registered with the 1st respondent-Institute of Chartered Accountants of India, is aggrieved by the refusal of the 1st respondent to register his sole proprietorship on its website. The petitioner sought to command the respondent to record the dissolution of the firm 'R Menon and Associates' as shown in Exhibit P5(a) in view of Section 43 of the Partnership Act as well as Exhibit P4 and to delete the petitioner's name from the records pertaining to the said firm in all capacities whatsoever with effect from 21 November 2019. Certain other incidental reliefs were also sought.

2. The petitioner states that respondents 2 and 3 and the petitioner were Partners of a Firm “R. Menon & Associates”, having office at Ernakulam. The partnership was constituted as per Ext.P1 Partnership Agreement dated 30.06.2015. The duration of the partnership was ‘at will’ as per Clause 9 of Ext.P1. The 1st respondent issued Ext.P2 Registration Certificate dated 15.02.2018 to the partnership. The 2nd respondent, at the same time, was practising as Sole Practitioner also. 

3. According to the petitioner, he was the Working Partner and respondents 2 and 3 were residing at Kozhikode and Dubai and were not taking active role in running the partnership. The husband of the 3rd respondent, as landlord, issued notice to the petitioner to vacate the partnership office premises. A Rent Control Petition was also filed. The Firm surrendered the premises to the said landlord, as both the other Partners gave consent to vacate the premises. 

To know more in details find the attachment file