In a dissolved partnership, the court has the discretion to appoint a Receiver to protect the assets of the firm and prevent their dissipation.

The Order of the Court was as follows :

Two suits in O. S. Nos. 269 and 270 of 1997 were filed before the Subordinate Judge's Court, Tirupur to declare that the 1st defendant-firm is dissolved on and from 31-1-1997 and to direct to take an account of the assets and liabilities of the firm and distribution of the same to the respective sharers and to allot plaintiff's share, direct the defendants 2 and 3 to render account of the firm from the date of commencement, appoint a Receiver to manage the affairs of the firm till settlement of account, award the costs of the suit and grant such other reliefs as the Court deem fit and proper.

2. Two firms M/s. Devi Textiles and Maruthi Fabrics at Tirupur are the first defendant respectively in O. S. Nos. 269 and 270 of 1997. Plaintiff in both the suits is a partner having 50% share in M/s. Devi Textiles and Maruthi Fabrics. In both the suits, the 2nd defendant is having remaining 50% share. It is admitted by both sides that it is a partnership at will.

3. Misunderstanding arose between the partners and finally elders intervened and panchayat was also held. Even though the defendant agreed to abide by the panchayat decision, they backed out and finally the defendants issued a notice on 31-1-1997 accusing the plaintiff and her husband for the sorry state of affairs and gave notice for the dissolution of the firm. The plaintiff also replied stating that the firm stands dissolved with effect from 31-1-1997 and called for rendition of accounts.

4. Even though the firm stands dissolved on 31-1-1997, the defendants did not submit the accounts and they still carrying on business as if the firm is continuing. According to the plaintiff, the intention of the defendants is to manipulate the accounts to serve their own end. It was under those circumstances, the above suit was filed for the above reliefs. Along with the suit, the plaintiff filed I. A. Nos. 588 and 590 of 1997 for appointment of Receiver to take over the assets and liabilities of M/s. Devi Textiles and Maruthi Fabrics. The same was seriously objected by the petitioners and they pleaded before the trial Court that no ground has been made out for appointment of Receiver.

5. The trial Court as per orders dated 24-10-1997 came to the conclusion that fit case had been made out for the appointment of Receiver and held that it is just and convenient to have the management of the assets be entrusted with the Receiver.

6. Aggrieved by the orders, the petitioners have filed C. M. A. Nos. 96 and 97 of 1997 on the file of the II Additional District Judge, Coimbatore which did not meet with any success. The appeals were dismissed.

7. In this revision, learned counsel for the petitioners challenges the legality of the order. Counsel submitted that Receiver should not have been appointed for the running business and the discretion has not been properly exercised.

8. As against the said contention, learned counsel for the respondent submitted that there is no running business, petitioners themselves wanted a dissolution of the firm and it was the petitioners to inform (sic) my notice of their intention to dissolve the firm. The plaintiff also agreed for the dissolution with effect from 31-1-1997. It is contended that being a partnership at will, when one of the partners communicates his intention to dissolve the firm, that will dissolve the firm. It is submitted that this is a case of dissolved partnership and the intervention of Court sought for is only for the purpose of winding up the business and in such cases, Receiver is appointed as a matter of course.

9. It is not disputed by the petitioners that the firms M/s. Devi Textiles and Maruthi Fabrics are partnership at will. Under section 43 of the Indian Partnership Act, a partnership at will is dissolved by any partner giving notice in writing to all the other partners of his intention to dissolve the firm. It also says that the firm is dissolved as from the date mentioned in the notice as a d