1964 Supreme(AP) 211
Andhra Pradesh High Court
Judges : ANANTA NARAYANA AYYAR
Daggumati Radhakrishnaiah - Appellant
Versus
Yedlapalli Govindu - Respondent
Decided On : 10-22-64
A stranger to a partnership cannot ask for its dissolution.
Headnote:
PARTNERSHIP - DISSOLUTION - SUIT FOR - MAINTAINABILITY - STRANGER TO PARTNERSHIP - CANNOT ASK FOR DISSOLUTION OF PARTNERSHIP - PARTNERSHIP ACT, 1932, SECTION 44.
Fact of the Case:
Plaintiffs filed a suit for dissolution of a partnership firm and for a decree for the amount alleged to be due from the fourth defendant firm. The fourth defendant firm had already been dissolved in a previous suit. The plaintiffs were not partners of the fourth defendant firm.
Finding of the Court:
The court held that the plaintiffs, being strangers to the fourth defendant firm, could not ask for its dissolution. The court relied on Section 44 of the Partnership Act, 1932, which provides that a suit for dissolution of a firm can be filed only by a partner of the firm.
Issues: Whether the plaintiffs, being strangers to the fourth defendant firm, could ask for its dissolution.
Ratio Decidendi: The court held that a stranger to a partnership cannot ask for its dissolution. This is because Section 44 of the Partnership Act, 1932, provides that a suit for dissolution of a firm can be filed only by a partner of the firm. The court also held that the plaintiffs could ask for a decree for the amount alleged to be due from the fourth defendant firm.
Final Decision: The court allowed the civil revision petition in part and modified the finding of the lower court on Issue No. 4. The court held that the plaintiffs could not ask for dissolution of the fourth defendant firm, but they could ask for a decree for the amount alleged to be due from the fourth defendant firm.
( 1 ) THIS is a petition by D. Radha krishnaiah to revise the order of the learned District Munsif, Nellore in O. S. No. 51 of 1957 giving a finding on Preliminary Issue No. 4. The relevant fuels are as follows: Two plain-tiffs filed O. S. No. 51 of 1957 on the file of the learned District Munsif, Nellore impleading seven defendants. Of these, the second defendant is D. Radhakrishnaiah in his capacity as partner of a firm (Aytha Venkataseshaiah Oil Co.) which included plaintiffs 1 and 2 and also defendant 1 and 2. In the plaint, as originally framed, it was contended that one Aytha Venkata-seshaiah (third defendant) was also a partner of this partnership. This partnership is hereafter referred to for convenience in this order as plaintiff-firm. The first defendant is Aytha Venkataseshaiah. The fourth defendant is another firm called D. Radhakrishnaiah and Aytha Venkata Seshaiah New Account. For convenience, I shall refer to it hereafter as the fourth-defendant firm. In the plaint as originally framed, it was contended that its partners consisted of Aytha Venkata Seshaiah (fifth defendant who was the same person as the first defendant), D. Radha-krishnaiah (who is personally identical with the second defendant) and Aytha Venkataratnam (Seventh defendant who is personally identical with the third defendant), In the plaint, the plaintiffs asked reliefs as follows: " (a) for a preliminary decree declaring that suit firm be dissolved as from date of plaint; (b) declaring plaintiffs share in the suit partnership; (c) directing 1st defendant to render a proper account in respect of plaintiffs share in the firm and produce into court all the partnership account books vouchers and documents in his custody. (d) for directing a general account, after dissolving the 4th defendant firm in respect of the liability of the 4th defendant and defendants 5, 6 and 7 as its partners, in respect of cash dealing between suit firm and the 4th defendant firm. It was contended in the plaint as follows: "the partnership (plain tiff-firm) was at will Then; are cash dealings and running account between suit firm"aytha Venkataseshaiah Oil Co. (plaintiff-firm) and D. Radhakrishnaiah and A. V. Seshaiah New Account (fourth defendant firm ). The balance of about Rs. 24,000 is due and payable by 4th defendant firm to the suit firm. "
( 2 ) A written statement was filed by D. Radhakrishnaiah which purported to be written statement of defendants 2. 4 and 6. In it, he stated as follows: "this defendant has no objection for the dissolution of the suit firm, ascertainment of the profits. "
( 3 ) THE first defendant filed written statement. The third defendant filed another written statement adopting that of the first defendant.
( 4 ) SEVEN issues were framed as follows;"1. Whether the defendants 1 and 3 are members of a joint Hindu family and the 1st defendant is the partner of the firm known as Aytha Venkata Seshayya Oil Company as the manager of the joint family? 2. Whether the 3rd defendant is liable in the capacity of a partner? 3. Whether the 3rd defendant is a necessary party to the suit? 4. Whether the plaintiff (i) can ask for dissolution of the other firm shown as the 4th defendant and (ii) can ask for a decree for the amount alleged to be due from it? (The numbering is done by me for convenience in discussion ). 5. Whether the assets of the partnership known as Aytha Venkata Seshayya Oil Company are used for the carrying on the business under the name and style of Aytha Venkata Seshayya, Yedlapalli Govind Oil Company? 6. Whether defendants 4 to 7 are necessary parties to the suit? 7. To what relief is the plaintiff entitled?"the order of the lower Court shows that the third defendant was given up subsequently. Advocates on both sides represent that issues 1 to 3 are also given up in consequence. The learned District Munsif proceeded to dispose of Issue No. 4 as a preliminary issue and gave his finding on it.
( 5 ) THE contention in t