DEVJI @ DEVIJI SHIVJI vs MAGANLAL R. ATHRANA & OTHERS

The Supreme Court held that under Section 22 of the Indian Partnership Act, 1932, a firm can only be bound by acts or instruments executed in its name or with an intention to bind it. In this case, the sub-lease granted to respondent No. 4 was not executed in the name of the firm, and the parties did not intend to bind the firm by that transaction. Consequently, the decree for recovery of Rs. 57,000 was limited to respondents 4 and 5, as the other respondents were not liable.