Rock and Co., a partnership firm filed a suit against Suresh to recover Rs.30,000. The suit was dismissed by the court on the ground that it was not maintainable since the partnership firm was not registered as required by the provisions of the Indian Partnership Act, 1932. Thereafter, the firm was registered and a subsequent suit was filed on the same cause of action. Whether the subsequent suit is maintainable?
The filing of subsequent suit by the firm after its registration is maintainable and it is not barred by ‘res judicata’ (Sec. 11 C.P.C)
Sec. 11 C.P.C. explains the principle of Res judicata. A Court should not try any suit or issue in which the matter directly and substantially in issue has been directly and substantially in issue in a former suit between the same/any of the parties and such issue has been heard and finally decided by such Court.
In the above problem, the dismissal of the suit by the Court on the ground that the firm was not registered is not a matter directly and substantially in issue and hence subsequent suit on the same cause of action is maintainable.