SupremeToday Landscape Ad
Back
Next
Judicial Analysis Court Copy Headnote Facts Arguments Court observation
Listen Audio Icon Pause Audio Icon
judgment-img

1951 Supreme(Cal) 137

HIGH COURT OF CALCUTTA
Sinha
PARASRAM HARNANDRAI - Appellant
Versus
CHITANDAS - Respondent
Civil Suit 232  Of  1951
Decided On : MAY 21, 1951

Advocates Appeared:
A.K.SEN, GOURI MITRA, H.C.GHOSH

A suit for possession of an interest in land is a suit for land and therefore not within the jurisdiction of the Calcutta High Court.

Headnote:

REVOCATION OF LEAVE - PARTNERSHIP SUIT - BALANCE OF CONVENIENCE - JURISDICTION - LAND SUIT - PARTNERSHIP ACT, 1932 - LETTERS PATENT, CLAUSE 12 - Leave granted under Clause 12 of the Letters Patent to institute a suit in the Calcutta High Court was revoked on the grounds that: (1) the suit was a suit for land and the land was entirely situate outside the jurisdiction; (2) the balance of convenience was overwhelmingly in favor of the defendant; and (3) the suit was mala fide and instituted merely to harass the defendant.

Fact of the Case:

The plaintiff, a registered partnership firm carrying on business in Calcutta, filed a suit in the Calcutta High Court against the defendant, a resident of Delhi, for dissolution of partnership and accounts. The plaintiff claimed that the partnership business, known as 'Peramal Chetandas', was a partnership of which the plaintiff firm was one of the partners. The defendant claimed that he was the sole owner of the business.

Finding of the Court:

The court found that the suit was a suit for land, as the plaintiff sought delivery of possession of the shops and godowns used in the partnership business, which were located in Delhi. The court also found that the balance of convenience was overwhelmingly in favor of the defendant, as all the witnesses and evidence were located in Delhi. Additionally, the court found that the suit was mala fide and instituted merely to harass the defendant.

Issues: 1. Whether the suit was a suit for land and therefore not within the jurisdiction of the Calcutta High Court. 2. Whether the balance of convenience was in favor of the defendant. 3. Whether the suit was mala fide and instituted merely to harass the defendant.

Ratio Decidendi: 1. A suit for possession of an interest in land is a suit for land. 2. In considering an application for revocation of leave to institute a suit under Clause 12 of the Letters Patent, the court will consider the balance of convenience and may revoke leave if the balance is overwhelmingly in favor of the defendant. 3. A suit may be considered mala fide if it is instituted merely to harass or oppress the defendant.

Final Decision: The court revoked the leave granted to the plaintiff to institute the suit in the Calcutta High Court.

SINHA, J.

( 1 ) THIS is an application for revocation of leave which has been granted to the plff. , under the provisions of Clause 12 of the Letters Patent. The facts are briefly as follows: There is a shop, situate at Katra Tobacco, Khari Baoli, in Delhi, under the name and style of 'peramal Chetandas. The plff. is a registered partnership firm, carrying on business under the name and style of Parasram Harnandrai at 129 Cotton Street, Calcutta and also at Delhi. The plff. firm claims the said business of 'peramal Chetandas' to be a partnership of which the partnership firm is one of the partners. The deft. Chetandas says that he is the sole owner of the business which bears his own name and that of his father Peramal. The process by which the plff. firm claims to have become a partner is set out in the plaint and is as follows: (1) In or about 5-3-1945, one Rajinder Kumar, Bhuramal and Mangalchand, entered into a 'verbal agreement in Calcutta, for the purpose of carrying on business in co-partnership under the name and style of 'gourishankar Radheshyam. ' (2) In such an agreement, Rajinder Kumar was really representing the plff. firm. (3) The plff. firm became agents of Gourishankar Radheshyam in Calcutta. (4) On 12-10-1946 Rajinder Kumar died. (5) On 17-4-1947 Bhuramull died. (6) The shares of the parties thereupon were altered, plff. firm getting 5/8 and Mangalchand 3/8. (7) On 28-6-1947, Chetandas was taken into the partnership under a 'verbal agreement' whereby the tenancy right of the shop-rooms and godowns was to belong absolutely to the plff. firm, name of partnership to be altered to 'chetandas Gourishankar' and the shares were altered, Plff. having 2/8, Chetandas 5/8 and Mangalchand 1/8. (8) On or about 28-6-1949, the share of Mangalchand was taken over by plff. and name of the firm changed to 'peramal Chetandas. ' All this was 'verbal. ' (95 It was stated that Chetandas committed various breaches of the partnership, agreement and it was no longer possible to carry on business in partnership.

( 2 ) IT will thus be seen, that 'peramal Chetandas' only comes into being in June 1949. Part of the cause of action is stated to have arisen in Calcutta, because the original agreement relating to Gourishankar Radheshyam is stated to have been in Calcutta. I do not see, how it is really possible to connect 'peramal Chetandas' with the original firm of Gourishankar Radheshyam in the manner that it is sought to be done. When a partner dies, the firm is dissolved, in the absence of a contract to the contrary. (Section 42, Partnership Act.) No contract to the contrary is pleaded, and the facts pleaded show that the original partners have changed, the shares have changed, the name has changed, and in January 1947, the entire complexion of the business changed, inasmuch as the shop-rooms and godowns were to belong exclusively to one partner, whereas another partner was to be in exclusive charge of conducting the business. Mr. Basil, appearing for the plff. says that there is sufficient pleading to show that the present firm is the same as the Original firm of Gourishankar Radheshyam I fail to see how that is so, at least on the pleading.

( 3 ) THE next thing to be considered is the prayers. There is the usual prayer for dissolution of partnership and accounts. But there is also a prayer asking for 'delivery of possession of the shops and godown herein mentioned. ' Connecting this with the allegations in para. 6 (a), the question arises as to whether the suit is one for possession of an interest in land, and therefore, a suit for land.

( 4 ) THE law relating to revocation of leave under Clause 12, Letters Patent, has been discussed "with a thoroughness, which is characteristic of Das, J. , in 'madanlal Jalan v. Madanlal', 49 C W N 357. The learned Judge, after discussing all the case law, laid down the following principles for guidance, in matters of this description: (a) That an application lies for revoking leave granted under

















Click Here to Read the rest of this document

1
2
3
4
5
6
7
8
9
10
11
SupremeToday Portrait Ad
supreme today icon
logo-black

An indispensable Tool for Legal Professionals, Endorsed by Various High Court and Judicial Officers

Please visit our Training & Support
Center or Contact Us for assistance

qr

Scan Me!

India’s Legal research and Law Firm App, Download now!

For Daily Legal Updates, Join us on :

whatsapp-icon Back to top