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- Suit maintainability in a civil court for matters involving an unregistered company under the Indian Companies Act. Detailed Analysis: The judgment pertains to a revision petition filed against the finding of the learned Munsiff on the issue of whether matters involving an unregistered company under the Indian Companies Act could be agitated in a civil court or only through an application for winding up. The dispute arose between members of a family association regarding the dissolution of various funds managed by them. The defendant contended that the suit was not maintainable due to the association being akin to an unregistered company under the Act. The learned Munsiff held that the suit was maintainable in the court and within its pecuniary jurisdiction. The petitioner-defendant challenged this finding, arguing that the association constituted more than twenty members, was unregistered, and thus the matters could not be addressed in a civil court. The court analyzed the relevant provisions of the Indian Companies Act, specifically sections 4(2) and 4(3), which regulate the formation of associations for gain. It was established that the association in question met the criteria of having more than twenty members, engaging in business activities, and aiming to acquire gain. The court rejected the contention that the association was not carrying on business for gain, highlighting the financial transactions and mutual benefits among members. Emphasizing that the term "gain" encompasses acquisition beyond mere pecuniary profits, the court concluded that the association's activities aligned with the Act's definition of a business for gain. Citing precedents from various High Courts, including cases from Allahabad, Calcutta, and the local High Court, the judgment reinforced the illegality of unregistered associations under the Act and the consequent bar on maintaining suits related to such entities. Ultimately, the court set aside the Munsiff's finding on the suit's maintainability in the civil court, allowing the revision petition and affirming that the matters involving the unregistered company-like association should not be addressed through a civil suit.
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