Joining issue on this question learned
senior counsel, Shri Rao, for the
appellant invited our attention to a
decision of this Court in the case of
Badri Prasad and Others v. Seth
Nagarmal (1959) Supp (1) SCR 769:
On the contrary the appellant joined issues
on merits by seeking permission to cross-examine the
plaintiff on merits of the case on grounds as pleaded
7
CA No. 7554/2021 (@ SLP(C)No. 3432/ 2017)
under Section 21(1)(a) of the Act. When the decree
was passed against the appellant, even while
challenging the said decree in appeal no such ground
was taken in the memo of appeal, nor was it argued
before the first appellate court. Under these
circumstances, the High Court rightly held that the
contention, regarding the suit being premature as
filed before expiry of six months from the date of
the notice, must be treated to have been waived by
the appellant. Joining issue on this question learned
Senior Counsel, Shri Rao, for the appellant, invited
our attention to a decision of this Court in the case
of Badri Prasad v. Nagarmal [AIR 1959 SC 559 : 1959
Supp (1) SCR 769] . In that case a suit filed by an
unregistered company was found to be hit by the
provisions of Section 4 sub-section (2) of the Rewa
State Companies Act, 1935. The said contention was
permitted to be taken for the first time during
averments in appeal before this Court. It was held
that as this contention went to the root of the
maintainability of the suit it could be agitated as a
pure question of law. We fail to appreciate how that
decision can be of any avail to the appellant in the
present case.
On the contrary the appellant joined issues
on merits by seeking permission to cross-examine the
plaintiff on merits of the case on grounds as pleaded
7
CA No. 7554/2021 (@ SLP(C)No. 3432/ 2017)
under Section 21(1)(a) of the Act. When the decree
was passed against the appellant, even while
challenging the said decree in appeal no such ground
was taken in the memo of appeal, nor was it argued
before the first appellate court. Under these
circumstances, the High Court rightly held that the
contention, regarding the suit being premature as
filed before expiry of six months from the date of
the notice, must be treated to have been waived by
the appellant. Joining issue on this question learned
Senior Counsel, Shri Rao, for the appellant, invited
our attention to a decision of this Court in the case
of Badri Prasad v. Nagarmal [AIR 1959 SC 559 : 1959
Supp (1) SCR 769] . In that case a suit filed by an
unregistered company was found to be hit by the
provisions of Section 4 sub-section (2) of the Rewa
State Companies Act, 1935. The said contention was
permitted to be taken for the first time during
averments in appeal before this Court. It was held
that as this contention went to the root of the
maintainability of the suit it could be agitated as a
pure question of law. We fail to appreciate how that
decision can be of any avail to the appellant in the
present case.
In the above case when cloth control came into force in Reewa State the cloth dealers of Budhar, a town in that State, formed themselves into an association to collect the quota of cloth to be alloted to them and sell it on profit wholsale, and retail. The association at Budhar consisted of 25 members, who made contributions to the initial capital of the association, which was Rs. 1,00,000/-. No formal article of association was written, nor was it registered. The association functioned through a President and a pioneer worker; they kept accounts and distributed the profits. In the above circumstances it was held by their Lordships of the Supreme Court that the suit being for accounts of an illegal association, which was in existence at the relevant period for which accounts were asked, the plaintiff association was an illegal body.
Shri. Patel has also relied upon decision of Apex Court in case of Badri Prasad and Ors. v. Nagarmal and Ors. in support of his submission that the court can not assist the plaintiff and or complainant so as to facilitate his furthering any prohibited and or illegal claim. The Apex Court in the aforesaid case clearly held that where an association of more than 20 persons was formed in contravention of Section 11(2) of the Companies Act and a claim was made by some members of such illegal association against another member on the footing that the association should be treated as legal in order to give rise to a liability to render accounts in respect of transactions of the association, such a claim was clearly untenable, and it was held that where a plaintiff comes to the court on claiming breach of conditions of illegal partnership contract then the only course for the courts to pursue is to say that he is not entitled to any relief on the allegations made as the court can not adjudicate in respect of contracts which the law declares to be illegal.