PURUSHOTTAM UMEDBHAI & CO. vs M/S. MANILAL AND SONS (IN CONNECTED APPEALS)

The Supreme Court held that a plaint filed in the name of a firm by a partner under a power of attorney executed by only one partner is a nullity under the Indian Partnership Act, 1932, specifically Section 4. The Court established that the term 'firm' refers to all partners collectively, and a suit must be brought in the individual names of the partners if the firm is not recognized as a legal entity in India. The Court upheld the High Court's decision that the amendment to substitute the names of the partners was not permissible and directed that the proper course was to withdraw the suit and file a fresh one within the limitation period under Order 23 Rule 1 of the Code of Civil Procedure, 1908.