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1969 Supreme(Ker) 188

M.U.ISAAC, E.K.MOIDU
NARAYANAN NAMBIAR – Appellant
Versus
AMBU – Respondent


Judgment :-

1. This is an appeal by the plaintiff in a suit for dissolution of partnership and for accounts. The trial court decreed the suit, while the lower appellants court dismissed it, on the ground that the partnership agreement was illegal.

2. The plaintiff was carrying on a wholesale business in handloom cloth, after taking out a licence as required by Clause.4 of the Madras Cloth Dealers' Control Order, 1944. The plaintiff formed a partnership with defendants 1 to 3 and one Mukundan for the purpose of carrying on this business; and the partnership carried on the said business with effect from 4-4-1946. On 13-5-1946 they executed an agreement, Ext. A-152, incorporating the terms and conditions of the partnership. The main clauses of Ext.A-152 are the following:

(i) The business will be continued in the name of the plaintiff under the licence standing in his name.

(ii) Each partner is to invest Rs. 2000/- each; and the profit and loss will be divided equally.

(iii) If any partner other than the plaintiff desires to retire, he may do so by giving one month's notice. If the plaintiff desires to retire, he may give notice to that effect to the other partners, and then the partnersh
































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