Ramratna Singh, J.

1. These two appeals and a third appeal, viz . First Appeal 164 of 1959 were preferred against the judgment of an Additional Subordinate Judge of Chapra. governing three suits, which were tried and heard together, relating to an undertaking for the generation and supply of electric energy to consumers in the town of Chapra Originally, the late Shri Mahendra Prasad obtained a license under the Indian Electricity Act of 1910 and started an undertaking, known as "Chapra Electric Supply Works", in 1932. After his death, his son Shri Janardan Prasad Varma became the licensee in 1935 Subsequently, the undertaking was transferred to a limited company, known as Chapra Electric Supply Works Limited", which was incorporated under the Indian Companies Act, 1913. The aforesaid license and the undertaking were transferred to this company by Shri Janardan Prasad Varma with the consent of the State Government, accorded under Sub-section (2) of Section 9 of the Act. by a notification dated the 10th December. 1937. This company went into voluntary liquidation in 1944. and Shri Chandradeo Narain, an Advocate of Chapra, was appointed liquidator The liquidator put the undertaking to public auction on the 15th September, 1944. and the highest bid of Murli Prasad at Rs 4.10.000 was accepted.

By a letter dated the 20th April, 1945 (Ext C-1), the State Government gave its consent to this sale to Murli Prasad and also to the assignment of the license to him A statutory notification under Section 9 (2) of the Act to the same effect was made on the 30th April, 1945. But really Murli Prasad had bid at the auction sale on behalf of a partnership created orally sometime before the 15th September, 1944. This partnership was constituted by Murli Prasad--4 annas share, Ayodhya Prasad Gupta--8 annas share, Parasnath Prasad --2 annas share, Gharbharan Sah--1 anna share, and Nandkishore Prasad--1 anna share. The sale price was paid to the liquidator in three instalments, viz., Rs. 1,00,000 on 28-11 1944, Rs. 60,000 on 3-2-1945 and Rs. 2,50,000 on 13-7-1945. A deed of partnership was executed by the aforesaid five partners on the 10th July, 1945, and it was registered on the 11th July, 1945. By that date only Rs. 1,60,000 was paid, the amounts paid by the different partners being Murli Prasad--Rs. 59,000, Ayodhya Prasad Gupta--Rs. 1000, Parasnath Prasad--Rs. 50,000, Gharbharan Sah--Rs. 25,000 and Nandkishore Prasad--Rs. 25,000. Out of the remaining amount of Rs. 2,50,000 Rs. 43,500 was to be paid by Murli Prasad, Rs. 2,04,000 by Ajodhya Prasad Gupta, Rs. 1250 by Parasnath Prasad, Rs. 625 by Gharbharan Sah and Rs. 625 by Nandkishore Prasad. The different co-partners paid their quotas to the account of Murli Prasad in the Central Bank at Chapra, and on the 13th July, 1945, the liquidator received a cheque for Rs. 2,50,000 from Murli Prasad and delivered possession of the undertaking to him on the same date vide Ext. C (5)-1.

Nandkishore Prasad transferred his one anna share to Gharbharan Sah and withdraw from the Partnership since 31-3-1947, This transfer was accepted by all the partners at a meeting held on 28-8-1950. On that very day Parasnath proposed to dispose of his one anna out of two annas share, and Murli Prasad also proposed to dispose of one anna out of his four annas share. Ayodhya Prasad Gupta agreed to purchase the same, and thus his share was enhanced to ten annas, and the same was distributed amongst the members of his family like this. Ayodhya Prasad Gupta--3 annas 9 pies.

Ram Saran Sah Gupta--3 annas 9 pies.

Brahmadeo Prasad Gupta--1 anna 3 pies.

and Ramagya Prasad Gupta--1 anna 3 pies.

The remaining three annas share of Murli Pra-sad was also divided amongst the members of his family like this: Murli Prasad--1 anna.

Dharnidhar Prasad--1 anna.

Chandreshwar Prasad Gupta--6 pies.

Kamleshwar Prasad Gupta--6 pies.

This meeting had been held particularly to arrange for a sum of Rs. 1,50,000 in order to take delivery of a new