Suits by or against firms, minors and persons of unsound mind, indigent persons, and interpleader suits
Civil Procedure Code and Limitation Act · Unit IV · Topic 21 of 27 · 9 min read
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1. Suits by or against firms (Order XXX)
- Firm name (rule 1). Two or more persons claiming or liable as partners and carrying on business in India may sue or be sued in the name of the firm of which they were partners when the cause of action accrued. Any party may ask for the names and addresses of the partners at that time.
- Disclosure and verification (rule 2). Where the firm sues, the plaintiffs must disclose the names of the partners on demand; the suit proceeds in the firm's name.
- Service (rule 3) may be on any partner or on the person in control of the business at the principal place of business.
- Death of a partner (rule 4). The suit does not abate, and the legal representative of the dead partner need not be joined.
- Appearance (rules 6 to 8). Partners appear individually but proceedings continue in the firm's name.
- Suits between partners (rule 9) and suits against a person carrying on business in a name other than his own, or a Hindu undivided family trading under a name, may be brought in that name as if it were a firm name (rule 10).
Under Order XXI rule 50, a decree against a firm may be executed against partnership property, against any partner who appeared or admitted, or was adjudged, a partner, and against others only with the leave of the court. Section 69 of the Indian Partnership Act, 1932 separately bars suits by an unregistered firm against third parties to enforce a contract.
2. Suits by or against minors (Order XXXII)
- Next friend (rule 1). Every suit by a minor is instituted in his name by an adult who is called his next friend. A plaint filed without a next friend may be taken off the file on the defendant's application, with costs against the pleader or person who presented it (rule 2).
- Guardian for the suit (rule 3). Where the defendant is a minor, the court must appoint a proper person as guardian for the suit (guardian ad litem), on the plaintiff's application, after notice to the minor and his guardian. A decree against a minor without a duly appointed guardian is not binding on him.
- Who may act (rule 4). Any person of sound mind who has attained majority, whose interest is not adverse to the minor's, and who is not the opposite party. The natural or certificated guardian is preferred.
- Representation (rule 5). Every application on behalf of the minor is made through the next friend or guardian.
- Money and compromise (rules 6 and 7). The next friend cannot receive money under the decree, or enter into a compromise, without the leave of the court. A compromise without leave is voidable against all parties except the minor.
- Adverse interest (rule 3A). A decree is not set aside merely because the next friend or guardian had an adverse interest; it is set aside only if prejudice to the minor is shown.
- Removal, retirement and death (rules 9 to 11). The court may remove a next friend who does not act in the minor's interest, and must appoint another if one dies or retires.
- On attaining majority (rules 12 and 13). The minor plaintiff elects whether to continue. If he continues, the title is amended to read “A.B., late a minor, by C.D., his next friend, but now having attained majority”. If he abandons, he may apply to dismiss the suit.
- Persons of unsound mind (rule 15). Rules 1 to 14 apply, so far as may be, to persons adjudged of unsound mind and to persons found by the court to be incapable of protecting their interests because of mental infirmity.
3. Problem: a minor lender
A, aged 16, lent ₹50,000 to Y. A wants to sue Y for recovery. Advise him (January 2026).
Issue. Whether a minor can sue, and how.
Law. Under Order XXXII rule 1, a suit by a minor must be instituted in his name by a next friend. Under the Indian Contract Act, 1872 an agreement by a minor is void (Mohori Bibee v. Dharmodas Ghose, Privy Council, 1903), but that rule protects the minor and cannot be turned against him: where the minor has fully performed his part, the courts have allowed him to recover what is due to him (for example, a minor mortgagee who had advanced the money, in Raghava Chariar v. Srinivasa, Madras High Court, Full Bench, 1916). Section 6 of the Limitation Act suspends the period till he attains majority.
Application. A cannot sign and present the plaint himself. His father, mother or another adult with no adverse interest must file the suit as next friend: “A, minor, by his next friend B”. If he files it himself, Y may have the plaint taken off the file under rule 2. On the merits, A has already advanced the money; Y's obligation to repay remains, and Y cannot plead A's minority to keep the money.
Conclusion. A may sue through a next friend now, or sue in his own name within three years after turning eighteen (Article 19 read with section 6, Limitation Act). Any compromise in the suit needs the court's leave under rule 7.
4. Suits by indigent persons (Order XXXIII)
Who is indigent (rule 1, Explanation I). A person is indigent (a) if he does not have sufficient means, other than property exempt from attachment and the subject-matter of the suit, to pay the court-fee prescribed for the plaint; or (b) where no fee is prescribed, if he is not entitled to property worth ₹1,000, excluding exempt property and the subject-matter. Property acquired after the application but before its decision is counted (Explanation II). In Union Bank of India v. Khader International Construction, 2001 INSC 266, (2001) 5 SCC 22, the Court held that “person” in Order XXXIII includes a juristic person, so a company may sue as an indigent person.
Procedure.
- Application (rule 2) with the particulars required in a plaint, a schedule of the applicant's movable and immovable property with values, signed and verified like a pleading.
- Presentation in person (rule 3), unless exempted, when an agent who can answer all material questions may present it.
- Inquiry into means (rule 1A) by the chief ministerial officer of the court in the first instance; examination of the applicant (rule 4) by the court.
- Rejection (rule 5) if the application is not in proper form, the applicant is not indigent, he fraudulently disposed of property within two months before applying, the allegations show no cause of action or a suit barred by law, or another person has acquired an interest in the subject-matter or agreed to finance the litigation.
- Notice and hearing (rules 6 and 7). At least ten days' notice to the opposite party and the Government pleader; evidence on indigency; then the court allows or refuses.
- If allowed (rule 8), the application is registered and deemed to be the plaint, and no court-fee or process fee is payable.
- Withdrawal of permission (rule 9) for vexatious conduct, sufficient means, or a champertous agreement. The court may assign a pleader to an unrepresented indigent person (rule 9A).
- Court-fee at the end. If the plaintiff succeeds, the court-fee is recoverable by the State Government from the party ordered to pay costs, as a first charge on the subject-matter (rule 10). If he fails, he is ordered to pay it (rule 11). It is recovered as arrears of land revenue (rule 14).
- Effect of refusal (rules 15 and 15A). Refusal bars a second application on the same right, but the applicant may sue in the ordinary way on paying the costs of the Government and the opposite party. The court may give him time to pay court-fee, and the suit is then treated as filed on the date of the original application. Limitation is protected by section 13 of the Limitation Act.
An order rejecting the application under rule 5 or rule 7 is appealable (Order XLIII rule 1(na)). Order XLIV makes parallel provision for appeals by indigent persons.
5. Interpleader suits (section 88 and Order XXXV)
Definition and conditions (section 88). Where two or more persons claim adversely to one another the same debt, sum of money or other property, movable or immovable, from another person who claims no interest in it other than charges or costs and is ready to pay or deliver it to the rightful claimant, that person may sue all the claimants to obtain a decision as to who is entitled and to get an indemnity for himself. The conditions are:
- there must be some debt, money or property in dispute;
- two or more persons must claim it adversely to one another;
- the person from whom it is claimed must claim no interest beyond charges or costs, and be ready to pay or deliver it;
- there must be no pending suit in which the rights of all parties can properly be decided (proviso to section 88).
Procedure (Order XXXV). The plaint must state that the plaintiff claims no interest other than charges or costs, the claims made by the defendants severally, and that there is no collusion with any defendant (rule 1). The thing claimed may be required to be paid into court (rule 2). Any pending suit by a defendant against the plaintiff on the same subject is stayed (rule 3). At the first hearing the court may discharge the plaintiff from all liability, award him costs and dismiss him from the suit, or keep all parties till the end; it may decide title on admissions, or frame issues between the claimants, one of whom is made plaintiff (rule 4). Agents cannot sue their principals, nor tenants their landlords, to compel them to interplead with third parties, except persons claiming through the principal or landlord (rule 5). The plaintiff's costs may be made a charge on the thing claimed (rule 6).
How this is examined
“State the procedure for instituting a suit by an indigent person” (January 2026) is answered from section 4. “Define inter-pleader suit. Explain the conditions and procedure relating to an inter-pleader suit” (June 2025) and the short note on it (February 2025) are answered from section 5. “Explain the suits by or against minors” (August 2024) uses section 2, and the minor-lender problem (January 2026) is answered as in section 3.
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