A partner cannot be a creditor or debtor to the firm of which he is a member, and therefore, cannot enforce a liability created by a hundi against the firm.

( 1 ) THIS is a suit for recovery of Rs. 10718-4-0 alleged to be due to the plaintiff from the defts. 1 to 4 as drawers and acceptors of a hundi dated 13/11/1938, from deft. 5 as indorser of the hundi and from deft. 6 on the footing that he agreed to discharge the liabilities of the deft. 5.

( 2 ) THE plaintiff and Din Mahommad used to carry on business in partnership in the name of East India Export Co. and Asiatic Produce Co. In 1933 they decided to terminate the partnership. The defts. 1 to 4 had drawn and accepted a hundi for Rs. 10,000 payable to the said firm or order 56 days after date. In accord and satisfaction of the pltf. 's share in the partnership, the said Hundi was indorsed by the said firm through Din Mohommed in favour of the plaintiff on 14/11/1933. The partnership was dissolved by mutual consent as on and from 31/12/1933 and on 14/2/1934 a deed of dissolution was executed by the plaintiff and Din Mohommed. The deed provided, inter alia, that Din Mahommad would be entitled to realise all the outstandings of the partnership businesses and would pay all debts and liabilities of the said businesses and indemnify the plaintiff in respect of any claim or action in respect of any of the debts of the said businesses and Din Mohommed would be entitled to use the firm names and to the benefit of all contracts entered into by the two firms. In a schedule to the deed of dissolution, the outstandings, stock-in-trade and the liabilities of the businesses were set out, which did not contain any reference to the plaintiff as a creditor on account of the indorsement of the hundi by the deft. firm.

( 3 ) ON 31/12/1933, the plaintiff made and signed the following endorsement in the books of account of the partnership:"after understanding the account, partnership is dissolved amongst us and the account book is closed. , I have received my full dues, and have no further claim. Henceforth I shall have no interest or concern with the firms of East Indian Export Co. and Asiatic Produce Co. "

( 4 ) THE said hundi dated 13/11/1943 was dishonoured by non-payment by the drawers and it is alleged that the deft, firm had notice of dishonour. This suit was filed on 21/3/1935.

( 5 ) THE plaint alleged that on 9/6/1934 the defts. 1 to 4 with the verbal assent of the deft, firm pledged 15 barrels of Lizard Skin as security for the debt due on the hundi, with the plaintiff on certain terms and conditions contained in a writing bearing the said date. Leave was reserved under Order 2, Rule 2 to sue for enforcement of the rights in respect of the pledge.

( 6 ) THE defts. 1 to 3 filed a joint written statement. Defendant 4 filed a separate written statement as also the deft, firm of East India Export Co.

( 7 ) ON 10/3/1937 the suit came up for hearing before Lort-Williams J. and was part-heard.

( 8 ) THEREAFTER an appln. was made for amendment of the plaint. The appln. was heard on 27-7-1937 when Lort-Williams J. made an order that the plaint and the register of the suit be amended by adding to the cause title thereof the name and description of Din Mohommed, a member of the firm of East Indian Export Co. as a party deft. and that the body of the plaint be amended in the manner indicated in red ink in the schedule to the order. The order for amendment was made without prejudice to the contentions of the deft, that the claim against Din Mohommed was barred by limitation and that the amendment introduced a new claim. Pursuant to the order the plaint was amended and the amendment in the plaint was signed by the Registrar on 15-9-1937.

( 9 ) THE plaint was amended by adding Din Mohammed as a party to the suit and by alleging that the deft, firm was a continuation of be firm of East India Export Co. and Din Mohammed had taken over the liabilities of the business of the said firm. It was also alleged that Din Mahommed acknowledged his liability to pay the pltf. 's claim by a letter dated 24-3-1934.

( 10 ) DIN Mahommad filed a written