How Reyvish Associates Pvt Ltd Outsmarted a Law Firm
NEW DELHI: In a surprising turn of events, Reyvish Associates Pvt Ltd successfully avoided paying legal fees amounting to over Rs 6.5 lakh to ‘The Chennai Law Firm’ by leveraging a little-known provision of the Indian Partnership Act.
The Case Background
The Chennai Law Firm had filed a suit against Reyvish Associates for recovery of legal fees due for services rendered. Initially, a Chennai city civil court ruled in favor of the law firm, ordering Reyvish Associates to pay the dues along with 12% interest. However, the company challenged this order in the district court.
The Argument and Court Rulings
Reyvish Associates argued that ‘The Chennai Law Firm’ was unregistered, and according to Section 69(2) of the Partnership Act, an unregistered partnership cannot file a recovery suit. The principal judge agreed, reversing the initial ruling and emphasizing that the suit was not valid.
Supreme Court’s Stand
When the law firm appealed to the Madras High Court, it reiterated its position, claiming that lawyer’s fees are statutory dues. However, the court upheld the previous decisions, stating that the law firm, being unregistered, lacked the right to file a suit for recovery. Justice Surya Kant’s remark, questioning the firm’s ability to secure professional fees, added a humorous yet poignant twist to the case.
Legal Takeaway
This case serves as a reminder of the importance of proper registration for law firms and the legal implications of the Indian Partnership Act. If you’re looking for legal advice or assistance, ensure that you engage with registered firms to avoid pitfalls.
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