Hindu undivided family in partnership deed did not become a partner; renewal could not be refused for missing signatures.

A Hindu undivided family is not a juristic person capable of entering into partnership as such, so the decisive question is whether the deed in substance made only the karta the contracting party. On a true construction of the deed and surrounding circumstances, Lala Suraj Bhan acted in his personal contractual capacity, though described as manager and karta, and no mutual rights and liabilities were created between the family unit and the other partners. The family therefore did not become a partner, the renewal application could not be rejected for lack of signatures of all family members, and cancellation of the firm's registration was not justified.

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Issues: Whether the partnership deed made the Hindu undivided family a partner so that renewal of registration of the firm required signatures of all its members, and whether cancellation of the firm's registration was justified.

Analysis: A Hindu undivided family is not a juristic person capable of entering into a partnership as such. The true effect of the deed had to be gathered from its recitals and the surrounding circumstances. Read as a whole, the deed showed that Lala Suraj Bhan alone was the contracting party, described as manager and karta of the family, and that no intention was expressed to create mutual rights and liabilities of partnership between the family as a unit and the other parties. The clauses relied upon by the revenue did not alter that conclusion, and the later severance of the family status did not affect the validity or continuance of the partnership.

Conclusion: The renewal application could not be rejected for want of signatures of all members of the Hindu undivided family, and the cancellation of registration was not justified; the answer to the referred question was in the negative.

Ratio Decidendi: Where the deed, on a true construction, shows that a karta entered into partnership in his personal contractual capacity though described as representing a Hindu undivided family, the family does not become a partner and renewal of firm registration cannot be refused merely because the other family members did not sign the application.

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