JUDGMENT:- These are two cross appeals and they arise out of a suit filed by Jai Ram and Ganga Ram against Bijai Ram Kanshi Ram for the recovery of a sum of Rs.30,534/10/-. The plaintiffs case was that they were carrying on business at Simla styled as "Firm Jai Ram Ganga Ram", while the defendants, similarly, carried on business in the name of Firm Bijai Ram and Co.

On 31-3-1936, the latter took over the assets and liabilities of the former firm for a sum of Rs.26,054/13/3. They also took over the business of a third firm styled as "Firm Daya Ram Jai Ram."

In place of the three firms, a new firm styled "M/s Bhandari Bijai Ram Kanshi Ram and Co." came into existence with a capital of Rs.16,000/-. Bijai Ram Kanshi Ram had eight-anna share in the firm, while Jai Ram Ganga Ram and Daya Ram had four-anna share each. The plaintiffs case was that the sum of Rs.26,054/13/3, plus interest thereupon, was due to them from the defendants less a sum of Rs.2,420/8/3, for which they had been given credit by the defendants.

2. The suit was resisted by Kanshi Ram on various grounds. In the first place, he contended that the suit, as filed, was defective, since it purported to have been instituted on b

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