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TMI Blog1987 (1) TMI 255X X X X Extracts X X X X X X X X Extracts X X X X ..... usion of Shri Imtiaz Ahamed as a partner in their gold dealers firm having a licence No. 68/83. Shri Imtiaz Ahamed is a minor. The inclusion of the minor in the said partnership firm was not approved by the original authority on the ground that in terms of Section 27 of the Gold (Control) Act, 1968, the Act for short, the applicant is required to agree to abide by the provisions of the Act and the Rules made thereunder and since the minor is only represented by a guardian and since the guardian has signed the Partnership Deed taking all the responsibilities on behalf of the minorson, the minor cannot give an undertaking to abide by the provisions of the Act. His prayer for inclusion of the minor was rejected. The appeal preferred by the r ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e learned S.D.R.. further urged that a minor can only be admitted to the benefits of the partnership under the Partnership Act, 1932 and so a minor cannot be fastened with any liability and proceeded against under the Act and if proceedings instituted under the Act against a minor are likely to be detrimental to the minor s interests, then such proceedings would be in conflict with the provisions of other enactment s safeguarding the welfare of the minor. The learned S.D.R.. further submitted that the observations of the lower appellate authority under the impugned order that he (reference to minor) will be precluded from doing any commercial activity of the firm till he attains the age of majority" are wholly without jurisdiction. 3. S ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... clusion of a minor in a firm is not excluded in the Income-tax Act, 1961. Finally, the learned Counsel placed reliance on an un-reported Division Bench judgment of the Delhi High Court in the case of M/s Talwar Diamonds v. Union of India in C.W.P. No. 1551 of 1986 to contend that a firm under the provisions of the Act is a legal entity though not in general law. 4. We have considered the submissions of the parties herein. The short question that arises for our consideration in the appeal is whether a minor by reason of admitted incapacity under general law to enter into a contract is precluded by the provisions of the Act from being included as a partner in a firm seeking licence under the Act in terms of Section 27(5) of the Act. It is n ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tion of the provisions of the Act by a firm of which the minor is the partner is not acceptable in law. If a minor commits an offence, he can be proceeded against even for heinous offence like murder though law has incorporated certain safeguards with reference to punishment under the provisions of the Children, Act, Probation of Offenders Act etc. If a firm consisting of a minor as one of the partners commits any irregularity or offence under the Act, it is the firm that will have to be proceeded against and also the persons who are otherwise personally liable for individual acts and the presence of a minor, as one of the partners, would not in any way disable the authorities at all to institute such proceedings or action as are open to th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... icularly adverted to the application for licence under the Gold Control (Forms, Fees and Miscellaneous) Rules, 1968 where one of the columns requires an applicant to name the partners of the firm. The discussion in the Delhi High Court s case clearly points to the fact that a firm has been construed and understood differently from the individual partners comprising the firm under the provisions of the Gold (Control) Act, 1968. Therefore, in the facts and circumstances of this case, the modification in the dealer s licence by inclusion of a minor would not be a circumstance on the basis of which the firm could be denied a dealer s licence if it is otherwise entitled to in terms of the Act. We agree with the submissions of the learned S.D.R.. ..... X X X X Extracts X X X X X X X X Extracts X X X X
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