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2010 Supreme(Bom) 101

In the High Court of Bombay at Aurangabad
THE HONOURABLE MR. JUSTICE P.R. BORKAR
Hukumchand Bhaulal Patani & Others
Versus
Dhanlal Premraj Kale & Others
Second Appeal No. 112 Of 1989
Decided on : 21-01-2010

Advocates Appeared:
For the Appellants :V.J. Dixit, Senior Counsel instructed by S.P. Deshmukh, Advocate.
For the Respondents:S.D.Kulkarni, Advocate.

Headnote:Partnership Act, 1932 - Sections 42(c) and 69(3)(a) Dissolution of partnership firm Suit for declaration firm dissolved and for statement of accounts by respondents 1 to 3 Decreed by trial Court directing appointment of Receiver for taking accounts District Court confirmed judgment of trial Court in appeal Second appeal against Appellant-1 contended they have right to continue business of partnership firm even after notice and death of father of respondents Held Partnership deed not showing that even after death of one partner, another partner can continue partnership firm After death of a partner, partnership firm stood dissolved in terms of Section 42(c) of Act as only two partners in partnership firm Findings of Court below upheld In view of Section 69(3)(a) of Act, no bar to file suit for dissolution of firm or for accounts of dissolved firm Judgments and decree of Courts below confirmed Second appeal dismissed. - In the present case, there were only two partners in the partnership firm, namely Hukumchand who was admitted as Karta on behalf of HUF (Hindu Undivided Family) and Premchand who was admitted in his individual capacity. It is submitted by Advocate Shri S.D. Kulkarni on behalf of the respondents that the HUF of Hukumchand is one unit and it is not that all its constituents or coparceners were made partners in the firm individually. There is no provision in the partnership deed to include any new partner by either partner or by the surviving partner. So it does not appear that the partnership firm was expected to continue even after termination notice by Premchand or subsequent to his death.

       So, the cases cited were the decisions on facts of individual case. The terms and conditions of the partnership deed were interpreted. Those were peculiar. However, that is not so in the present matter. In the circumstances agreed with both, the trial Court and the first Appellate Court that the partnership was at will and it had come to an end and stood dissolved as a result of notice given by Premchand specifically stating that thereby he was dissolving the partnership firm, so also by his subsequent death. Find discussion to this effect in paragraphs 12 and 13 of the Judgment of the District Judge.

       It is also argued that partnership is not registered and so there is bar of Section 69 of Partnership Act. But, this point was not raised in trial Court and in District Court, nor this second appeal is admitted on such question of law. Moreover, Section 69(3)(a) of the Partnership Act makes it clear that there is no bar to file suit for dissolution of a firm or for accounts of a dissolved firm. So, said point has no merits.

       In the result this second appeal deserves to be and is accordingly dismissed. The judgment and decree passed by the Civil Judge, Senior Division, Ahmednagar, in Special Civil Suit No. 21 of 1982 decided on 4.11.1987 which judgment and decree is further confirmed by the Additional District Judge, Ahmednagar in Regular Civil Appeal No. 533 of 1987 decided on 16.12.1988 are hereby confirmed. Appellants to pay costs of the respondents and bear their own.

       

JUDGMENT

1. This second appeal is preferred by original Defendant Nos. 1 to 5, being aggrieved by the judgment and decree passed by the learned Civil Judge, Senior Division, Ahmednagar, in Special Civil Suit No.21 of 1982 decided on 4.11.1987, which judgment and decree is further confirmed by the learned Additional District Judge, Ahmednagar in Regular Civil Appeal No. 533 of 1987 decided on 16.12.1988.

2. Present Respondent Nos.1 to 3 were the original plaintiffs. They filed above referred suit for declaration that the partnership firm in the name and style "H.B. Patani & Company" had been dissolved and for settlement of accounts with interest on amount due. The suit was also for perpetual injunction in respect of municipal house No.626 situate at Shrirampur and for appointment of Receiver. The Trial Court decreed the suit declaring that the partnership had been dissolved on 20.1.1980 and the share of the plaintiffs in partnership firm was 1/2 and that of present appellantsdefendants Nos. 1 to 5 was 1/2. The Court also directed appointment of Advocate Shri A.S.Pingale as Receiver of the partnership estate and effects and for taking accounts and do all other acts as required to be done. However, the trial court did not grant perpetual injunction as prayed.

3. In brief, the facts giving rise to this appeal are that Respondent Nos. 1 to 3 filed above referred special civil suit No.21 of 1982 alleging that appellant No. 1 Hukumchand and deceased Premraj Kale had formed partnership firm by name "H.B.Patani and Company" and only they two were the partners therein. Premraj Kale died on 14.12.1980. He had executed a Will on 1.11.1980 whereby he appointed Respondent Nos. 1 and 2 (original plaintiff Nos. 1 and 2) as executors and trustees. It is further stated that as per law, Respondent Nos. 1 to 3 were the legal heirs of deceased Premraj Kale. However,Defendant Nos. 6 and 7 (who are Respondent Nos. 4 and 5 in the present appeal), being the daughters of deceased Premraj, were added as formal parties to the suit. The partnership was for dealing in kerosene and crude oil. Premchand Kale had 1/2 share and appellant Nos. 1 to 5 who formed joint family had 1/2 share in the partnership. The partnership was at will and therefore partner had a right to terminate partnership with three months notice. Appellant No.1 Hukumchand had joined the partnership as Karta of the Joint Undivided Hindu Family ("HUF"for short) of appellant Nos.1 to 5. 04. By notice dated 26.10.1979, Premraj Kale terminated the partnership. In spite of that accounts were not settled and false reply was given by appellant No.1 Hukumchand on 29.1.1980. In the circumstances suit was filed for reliefs as aforestated. It is also stated that due to death of Premraj Kale on 14.12.1980 also, the partnership had come to an end. In paragraphs 2 and 3 it is also stated that partnership firm was doing its business from Municipal House No. 626 owned by Premchand and after his death by the plaintiffsrespondents. It is also said that after dissolution of partnership firm, the defendantsappellants have no right to do business in the property of the plaintiffs and so injunction was prayed for.

5. Appellant No.1 Hukumchand filed written statement on behalf of all defendants at Exh.55. According to written statement, appellant No.1 Hukumchand was representing joint family consisting of appellants and they have the right to continue the business of the partnership firm even after notice by Premchand and also after his death and, therefore, it cannot be said that the partnership stood dissolved. Therefore, according to the defendantsappellants there cannot be decree for dissolution. Moreover, right to file suit is also challenged on the ground that necessary parties were not added to the suit. It is stated that (1) M/s Shanlal Premraj Kale, Kopargaon (2) M/s Dipchand Premraj Kale at Kopargaon and (3) Smt. Urmila Vijaykumar Kale though were the necessary parties to the suit, were not made partie


































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