Judgment

RAMASWAMI, J. : These appeals are brought, by special leave, from the judgment and decree of the Madras High Court dated September 20, 1961 in A. S. Nos. 45 and 202 of 1957.

2. Narandas Morardas Gaziwala and Lakshmi Chand and Co. were two firms of partnership carrying on business in lace and silver thread at Surat in the State of Bombay. They had dealings with another firm at Kumbakonam - Krishna and Company- who acted as their agents for selling their goods in the three districts of Tanjore, Tiruchirapalli and Mathurai in the State of Madras on commission basis. The two partners of Krishna and Co. were Murugesa Chettiar and his wife s sister s husband Gopal Chettiar. It appears that Krishna and Co. was acting as commission agents on behalf of the two firms at Surat from 1944 till 1951 when the partnership of Krishna and Co. became dissolved by mutual agreement between the partners. Murugesa Chettiar, one of the partners of Krishna and Co. took over all the assets and liabilities of the firm on dissolution and the other partner Gopal Chettiar retired from the firm. In respect of the dealings of the two firms at Surat (hereinafter to be referred to as the Surat Firm) with Kri