Judgment

JAGANMOHAN REDDY, J.:- These appeals are by certificate against the judgment of the Patna High Court which reversed the judgment and decree of the Trial Court in Title Suit No. 94 of 1956 filed by the first respondent Murli Prasad. A brief history of this case will be necessary for understanding the several contentions urged before us. One Mahendra Prasad obtained a licence for electrification of the Chhapra town which was granted to him in 1932. The licence was thereafter assigned to Janardhan Prasad Varma after the death of his father Mahendra Prasad in 1936. This licence was subsequently assigned to the Chhapra Electric Supply Company Ltd., which, however, went into voluntary liquidation in 1944. It was decided to sell the electricity undertaking by public auction and assign the licence to the purchaser with the previous sanction of the Government. In pursuance of this decision, the liquidator invited bidders for purchasing the electricity concern. But before the date of public auction, it is alleged that five person, namely, Ajodhya Prasad, Murli Prasad Respondent No. 1, Parasnath Prasad, Gurbharan Shah and Nandkishore Prasad entered into an oral agreement of partnership to purchase the electrical undertaking in the name of Murli Prasad, the share of Ajodhya was 8 annas, that of Murli Prasad 4 annas. Parasnath Prasad had 2 annas Gurbharan Shah and Nandkishore Prasad had one anna each. It was also agreed that the licence will be obtained in the name of Murli Prasad alone, though each partner had to contribute to the total purchase money in proportion of their respective shares in the partnership. Thereafter the electrical undertaking was sold by the official liquidator on September 15, 1944 to Murli Prasad as his was the highest bid of Rs. 4,10,000/- Thereafter each of the partners including Murli Prasad contributed in proportion to their respective shares in the partnership to make up the total sum of Rs. 4, 10,000/-. Payments to the official liquidator were made in three installments. It also appears that before the last installment of Rs. 2,50,000/- was paid on July 13, 1945, the oral agreement entered into between the partners was incorporated into a partnership deed executed on July 10, 1945 and registered under the India Registration Act. (Exhibit G ). Each of the partners had paid the following sums in accordance with their respective shares and in this manner all of them contributed Rs. 4,10,000/- towards the purchase money paid to the liquidator: Ajodhya Prasad Gupta - Rs. 2,05,000/-; Murli Prasad - Rupees 1,02,500/-; Parasnath Prasad - Rupees 51,250/-; Gurbharan shah Rs. 25,625/- and Nandkishore Prasad - Rs. 25, 625/- Nandkishore Prasad, however, retired from the partnership with the consent of all the partners and his one anna share was taken over by Gurbharan Shah. It also appears that in 1950 a further sum of Rs. 1,50,000/- was urgently required for taking delivery of some new plant and machinery which had arrived at the Chhapra Railways Station. Murli Prasad and Parasnath Prasad expressed their inability to contribute the sum of Rupees 1,50,000/- proportion to their shares, so this amount was also paid by Ajodhya Prasad Gupta to whom Murli Prasad and Parasnath Prasad sold one anna share each out of their respective shares. Thus, the share of Ajodhya Prasad increased to 10 annas while that of Murli Prasad and Parasnath Prasad reduced to 3 annas and one anna respectively. Thereafter the partners contributed the amount in accordance with their respective shares. This re-allocation of shares became the occasion for execution of a second partnership deed on August 31, 1950, which was also registered under the Indian Registration Act: Ext. 9. The partnership itself was registered under the Indian Partnership Act on May 13, 1953, Ext. C . One other fact must also be stated at this stage, and that is, Ajodhya Prasad and Murli Prasad being Kartas of their respective joint families, had entered into partnershi