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1957 Supreme(AP) 74

HIGH COURT OF ANDHRA PRADESH
SUBBA RAO,MANOHAR PERSHAD, JJ.
Peeran Sahib
Versus
Pedda Jamaluddin Sahib
Appeal No. 155 of 1951 against decree of Sub. J., Cuddapah, in O. S No. 13 of 1947.
Decided On : 05-04-1957

Advocates:
M.S. Ramachandra Rao and M. Krishna Rao, for Appellants; Alladi Kuppuswamy and C. Narasinhacharyulu, for Respondents.

The legal representatives of a deceased partner are entitled to a share of the profits made since the deceased partner ceased to be a partner, or to interest at the rate of 6% per annum on the amount of the deceased partner's share in the property of the firm, but such a suit is barred by limitation if it is not filed within three years from the date of dissolution of the partnership.

Headnote:

PARTNERSHIP - DISSOLUTION - DEATH OF PARTNER - CONTINUATION OF BUSINESS BY SURVIVING PARTNERS - RIGHTS OF LEGAL REPRESENTATIVES OF DECEASED PARTNER - LIMITATION - ARTICLE 106 OF THE INDIAN LIMITATION ACT, 1908 - OUSTER - CO-OWNERS - ADVERSE POSSESSION.

Fact of the Case:

The plaintiffs, claiming to be the heirs of Syeda Bi, Syed Hussain, and Jaibun Bi, filed a suit for partition and separate possession of their share in the A schedule properties and for dissolution of partnership and settlement of accounts in respect of Khajameah Company. The defendants, representing the branches of Dastagiri Sahib and Ibrahim Sahib, and Muhammad Hussain and Muhammad Yusuf, contested the suit.

Finding of the Court:

The court found that there was no evidence to prove that Syeda Bi, Syed Hussain, or Jaibun Bi was ever admitted as a partner of Khajameah Company. The court also found that the partnership was dissolved by the death of Khajameah and that the subsequent partnerships were entered into between specific individuals and were registered as partners under the Partnership Act.

Issues: 1. Whether Syeda Bi, Syed Hussain, or Jaibun Bi were partners of Khajameah Company? 2. Whether the suit was barred by limitation? 3. Whether the plaintiffs were entitled to a share in the A schedule properties?

Ratio Decidendi: 1. The court held that there was no evidence to prove that Syeda Bi, Syed Hussain, or Jaibun Bi was ever admitted as a partner of Khajameah Company. The court relied on the fact that there was no documentary evidence to prove that any of them was ever treated as a partner, and that the accounts did not disclose that any separate ledger folios were kept for them or that any amounts were credited to such accounts. 2. The court held that the suit was barred by limitation under Article 106 of the Indian Limitation Act, 1908. The court reasoned that the suit was for an account and a share of the profits of a dissolved partnership, and that the period of limitation for such a suit was three years from the date of dissolution. 3. The court held that the plaintiffs were entitled to a share in the A schedule properties, which were the personal properties of Khajameah. The court found that Syeda Bi inherited a share in his assets and that after her death Syed Hussain, Syed Peeran, and Mahabub Bi would be entitled to specific shares in her interest. The court rejected the defendants' argument that the plaintiffs had lost their right to the properties by ouster, finding that there was no unambiguous denial of their title until 1946.

Final Decision: The court modified the decree of the lower court. There was to be a preliminary decree for partition in regard to the A schedule properties. The parties were to pay and receive proportionate costs here and in the court below.

Judgement

SUBBA RAO, C.J. : -

This is an appeal by the plaintiffs against the decree and judgment of the Court of the Subordinate Judge, Cuddapah, dismissing the suit filed by the appellants for partition and separate possession of their share in the A schedule properties and for dissolution of partnership and settlement of accounts in respect of Khajameah Company.

2. The following section of the genealogy may be useful to appreciate the facts and the contentions of the parties.

(See genealogy on next page.)

Khajameah shown in the genealogy possessed large extent of moveable and immoveable properties. He was carrying indigo business in partnership with Muhammad Hussain, Ibrahim Sahib and Murthuja under the name and style of Khajameah Company wherein Khajameah owned half share and the other half was owned by the other partners. The company owned moveable and immoveable properties, outstandings and other stock-in-trade. Khajameah died at Proddatur in 1900, leaving behind him his widow and four sons, namely, Aminuddin, Hussain, Dastagir Sahib and Kamal Sahib and a daughter Syda Bi. On 14-7-1900 he executed a will whereunder he directed that the said business should, after his death, be continued by his four sons along with other partners.

He further gave directions that one of his sons and a representative of the other partners should jointly manage the business. After the death of Khajameah, the business was carried on, as it was carried on before, till the death of Muhammad Hussain in 1903 and Aminuddin and Muhammad Hussain were jointly managing the business. Thereafter, Ibrahim jointly managed the same with Aminuddin till Ibrahim died in 1907. After his death, Murthuza Sahib was in joint management of the business until his death. After he passed away in 1911, Muhammad Yusuf, the brother of Muhammad Hussain was in management till 1913. After the death of Yusuf in about 1913, Aminuddin jointly managed the same assisted by the 1st defendant the son of Ibrahim Sahib and Muhammad Hanif, son of Muhammad Yusuf.

Aminuddin died in, 1926 when his brother Dastagiri Sahib, the third son of Khajameah jointly managed the business with the 1st defendant and Hanif Sahib. After the death of Dastagiri Sahib in 1940. the 8th defendant and another grand-son of Khajameah were jointly managing the business with the 1st defendant and Hanif Sahib. The 1st plaintiff is the son of Syda Bi, the daughter of Khajameah and the 2nd plaintiff is Syed Peerans daughter. Syed Peeran was married to Jaibun Bi, the grand-daughter of Kha-jameahs second son Hussain. Syda Bi. her husband Syed Hussain and their daughter-in-law Jibun Bi died in 1918, 1934 and 1940 respectively. The plaintiffs, who are the son and grand-daughter of Syeda Bi and also the husband and the daughter of Jaibun Bi filed the suit for the aforesaid reliefs.

3. It was alleged in the plaint that the business of Khajameah was carried on by the managers chosen from the representatives of the two main shares and the said managers were managing the affairs of the company for themselves and for the benefit of all the heirs of Khajameah and the partners including the heirs of such of those who died subsequently. On those allegations, though they claimed a higher share, they finally accepted that, as heirs of Syeda Bi, Syed Hussain and Jaibun Bi, they would be entitled only to 65/864th share in Khajameahs interest in the business. They also claimed the same share in his personal properties.

4. Defendants 1, 2 and 7 to 10 represent the branches of Dastagiri Sahib and Ibrahim Sahib respectively and defendants 4 to 7, 13 and 14 represent the branches of Muhammad Hussain and Muhammad Yusuf respectively. The 12th defendant is the widow of Khajameahs eldest son Aminuddin. The defendants version was that after the death of Khajameah the business was not conducted for the benefit of all the heirs of Khajameah but only for the benefit of sons of Khajameah and the other partners and that there was no agreement that the


























































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