( 1 ) ASUDA Singh, defendant No. 3 in the suit, (since deceased, and now represented by his legal representatives) filed this regular first appeal against the judgment and decree of the learned trial court rejecting the plaint of an interpleader suit filed by Union of India and in the alternative holding that defandant No. 1, R. B. Pahlaj Singh alone was entitled to receive the amount mentioned in the plaint and held by Union of India.

( 2 ) IT appears that a sum of Rs. 74,878/5/9 was received by transfer by Union of India from the Government of Pakistan on partition of the sub-continent, being the amount due on account of certain works executed in pursuance of certain contracts entered into by the Government of undivided India. The appellant herein registered a claim for l/3rd of this amount with the Controller General of Defence Accounts with the plea that this amount was payable to the firm. M/s. R. B. Pahlaj Singh Lulla (hereinafter called "the firm") of which the appellant and the other two defendants to the suit, R. B. Pahlaj Singh Lulla (defendant No. 1 ) and Seth Ram Singh Chiman Singh Lulla (defendant p. No. 2) were partners with equal shares. Defendant