High Court of Judicature at Madras
The Honourable Mr. Justice Ratnam and The Honourable Mr. Justice Somasundaram
Messers Raja Theatre, Coimbatore - Appellant
Versus
M/s.Selvam Financiers and another - Respondents
A.A.O.No.78 of 1982
Decided On : 01 February 1991
Somasundaram, J.:
The second respondent-garnishee in I.A.No.1167 of 1980 in O.S.No.1453 of 1980 on the file of the Sub-Court, Coimbatore, is the appellant in this civil miscellaneous appeal. The petitioner in the said I.A.No.1167 of 1980 is the first respondent in this miscellaneous appeal. The first respondent in the said application is the second respondent this civil miscellaneous appeal. For the sake of convenience, the parties are referred to judgment as per their array in the Interlocutory Application.
2. The petitioner filed the application I.ANo.1167 of 1980 in O.S.No.1453 of 1980 on of the Sub Court, Coimbatore under O.38, Rules 5 and 11(a) read with O.21, Rule O.40, Rule 1 and Sec.151, C.P.C., to call upon the first respondent to furnish sufficient security failing which to order of attachment before judgment of the share, interest, credit and deposits due to him in the partnership firm M/s.Raja Theatre at Coimbatore case of the petitioner in I.A.No.1167 of 1980 is as follows. O.S.No.1453 of 1980 has filed by the petitioner-firm against the defendants for the recovery of a sum of Rs.1,31,600 together with interest at 18% per annum. The first respondent in I.A.No.1167 of 1980 his wife are the defendants in the said suit. The defendants are heavily involved in having borrowed moneys from various financiers throughout Tamilnadu. The defendants have disposed of the negatives and exhibition rights of the various films and secreted sale proceeds. The defendants have disposed of their valuable immovable properties immovable property viz, the house bearing door No.83/110, Barathi Park Road, Coimbatore, standing in the name of the second defendant in the suit has been mortgaged and the of redemption is practically worth nothing. The first respondent owned 30% share partnership firm M/s.Raja Theatres. The other partners of the said firm are one Baskaran, elder brother of the first respondent Viswanatha Chettiar and his sons Ravindranath Sekar. The first respondent has been making attempts to dispose of his interest in the partnership firm. Unless the first respondent ’ s interest as partner in the properties profits of the firm M/s.Raja Theatres are attached, the first respondent is likely to enter some arrangement with the other partners of the said firm for transferring the same to or to some third parties. On 31.10.1980 the lower Court passed an interim order in I. 1167 of 1980 directing interim attachment of the interest and share of the first respondent the partnership firm M/s.Raja Theatres and the attachment was effected by pro 15.11.1980. The first respondent remained ex parte in I.A.No.1167 of 1980.
3. The second respondent filed a counter contending as follows: The first respondent had interest in the partnership firm, M/s.Raja Theatres. Even long prior to the filing of the suit the first respondent ceased to have any interest in the partnership firm. Even otherwise application for attachment is not maintainable in view of the fact that the partners of firm have not been made parties in the garnishee proceedings. As per the agreement dated 1.3.1979 Viswanatha Chettiar and his two sons on the one hand and the first respondent on the assets and liabilities of the first respondent in the partnership firm are to be taken by Viswanatha Chettiar and his two sons in lieu of their discharging the debts due by first respondent as a partner of the firm. The petitioner is not entitled to the relief application, because, the first respondent has no interest whatsoever in the firm M/s.Raja Theatres on the date of the filing of the application as well as on the date of the order attachment.
4. The lower Court, on a consideration of the entire evidence on record, held that the respondent did not retire from the firm M/s.Raja Theatres as per the agreement 1.3.1979 marked as Ex.B-1 in this case as alleged by the second respondent, and therefore the first respondent continues to have right, title and interest in the said p
Login now and unlock free premium legal research
Login to SupremeToday AI and access free legal analysis, AI highlights, and smart tools.
Login
now!
India’s Legal research and Law Firm App, Download now!
Copyright © 2023 Vikas Info Solution Pvt Ltd. All Rights Reserved.