J. B. MEHTA, B. G. THAKOR, J.

( 1 ) THESE two cross appeals raise an interesting question as to the interpretation of the two mandatory conditions laid down in sec. 69 (2) of the Indian Partnership Act 1932 hereinafter referred to as the Act in the context of a reconstituted firm by addition of a now partner and when the cause of action had accrued after such reconstitution. First Appeal No. 769/1960 is filed by the original defendant-company while First Appeal No. 1029/60 is filed by the original plaintifl-firm.

( 2 ) THE short facts which have given rise to these two appeals are as under :the plaintiff-firm is a partnership firm having firms namo Messrs. Mohatta Brothers which carried on the business of managing agency of the dependent-company namely Bharat Suryoday Mills Company Limited hereinafter referred to as the company. The plaintiff-firm carried on the said business of the managing agency upto 4th September 1950. Shri Chaturbhujdas had given a scheme of management Ex 168 on behalf of Messrs. Chaturbhujdas Kharawala Mohatta and Company hereinafter referred to as the new managing agents on 31st July 1950. On 1st August 1950 a notice was issued by the secretary for sanctionin

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