Judgment

SHAH, J.

( 1 ) BRIG. F. J. Dillon and Major S. S. Khanna hereinafter called dillon and Khanna respectively carried on business in partnership as Construction Engineers. They agreed to dissolve the partnership with effect from 15/02/1956. By the deed of dissolution it was agreed that Dillon was to make over all the assets and properties of the partnership as absolute owner and to pay all the debts and to discharge all the liabilities of the partnership and to keep Khanna indemnified against all demands and claims in relation to the partnership business.

( 2 ) BUT the deed did not terminate the disputes between the partners, and Khanna commenced an action against Dillon in the Court of the Subordinate Judge, 1st Class, Delhi "for dissolution of the partnership and rendition of accounts. On 12/01/1957, the parties arrived at a compromise (which was incorporated into a decree of the Court) confirming the earlier dissolution of the partnership, subject to a scheme of winding up, under which all out-standings realised from the debtors of the firm and the sale proceeds of certain assets were to go into a banking account to be opened in the joint names of Dillon and Khanna and were