Partnership debt and locus standi: winding-up petition by one partner alone was not maintainable

A winding-up petition based on a debt owed to a partnership firm was required to be filed in the firm's name or by all partners jointly. A single partner, even if described as managing partner, could not maintain the proceeding in his own name because the debt belonged to the firm as a partnership asset, not to him individually. The filing was also criticised for loose drafting and inadequate particulars, though that was not treated as independently decisive.

---

---

Issues: Whether a winding-up petition for a debt due to a partnership concern is maintainable when it is presented only in the name of one partner, and whether the petition could be sustained on the materials placed before the Court.

Analysis: The claim arose from an alleged security deposit made by a partnership firm, and the company's liability, if any, was to the firm as a partnership asset and not to an individual partner. Under the applicable procedural framework for firms, a proceeding on such a claim had to be instituted either in the name of the firm or by all the partners acting jointly. A single partner, even if described as the managing partner, could not sue or petition in his own name for recovery of a firm debt. The petition was also found to be loosely framed, with inadequate particulars and no annexed supporting correspondence at the time of filing, though the Court treated this as not independently decisive.

Conclusion: The petition was not maintainable at the instance of one partner alone and failed for want of proper locus standi.

Final Conclusion: The winding-up application was dismissed, and the connected applications for stay of arbitration proceedings and transfer of the title suit were also rejected as consequential reliefs were unavailable after dismissal of the main petition.

Ratio Decidendi: Where the debt claimed belongs to a partnership firm, a winding-up petition based on that debt must be presented by the firm or by all the partners jointly, and not by one partner in his individual name.

---