The central legal point established in the judgment is the joint and several liability of a partner for the debts of the firm under Section 25 of the Partnership Act.

This second appeal is directed against the judgment in A.S.No.47 of 2005 reversing the judgment of the trial Court in O.S.No.15 of 2002 and thereby dismissing the appellant/plaintiffs suit. Unsuccessful plaintiff is the appellant. For convenience, parties are referred to as they are originally ranked in the suit.

2. Case of plaintiff is that plaintiff is the successful bidder in the auction conducted for the leasehold right of the land situated in S.No.48/2 of Veerichipalayam Village in Sankari Taluk for 3 years for fasalies 1408 to 1410. At the auction held on 31.07.1988, plaintiff deposited Rs.2,00,000/-(vide receipt Ex.A2). Further case of plaintiff is that defendants, who are in-charge of the Temple and its affairs were not able to hand over possession since one M/s.Karuna Mines and Minerals was in possession of the property auctioned and whose lease period was over and applied for renewal of the licence for quarrying with the Government of Tamilnadu. Renewal of licence was not granted and hence M/s.Karuna Mines and Minerals filed a revision to Government of India as envisaged under Minor Mineral Concession Rules and the said application was remanded for fresh disposal to the Government of Tamilnadu, which was challenged by defendants 4 and 5 in a Writ Petition before the High Court, Madras, which came to be dismissed on 22.09.2000. Alleging that defendants have not handed over possession to the plaintiff as per terms and conditions of auction notice, plaintiff filed the suit for refund of Rs.2,00,000/- paid by him as earnest money deposit along with interest at the rate of 18% per annum.

.3. Resisting the suit and admitting receipt of Rs.2,00,000/-towards earnest money deposit from the plaintiff, fourth defendant-Temple filed written statement contending that the plaintiff is a partner of M/s.Karuna Mines and Minerals and was well aware of the fact that M/s.Karuna Mines and Minerals has not delivered possession of the auctioned land. Fourth defendant further stated that M/s.Karuna Mines and Minerals made payments of Rs.1,00,000/-per month as rent and said cheques were signed by the plaintiff as a Partner. According to the defendants, M/s.Karuna Mines and Minerals have to pay Rs.34,00,000/- up to July 2002 and Rs.1,00,000/-per surface rent and plaintiff as a Partner of M/s.Karuna Mines and Minerals is also liable to pay the said amount and also surface rent to the fourth defendant. It is further averred that plaintiff, as a Partner of M/s.Karuna Mines and Minerals, should be aware that the application for renewal of mining lease filed by M/s.Karuna Mines and Minerals was rejected by the Government of Tamilnadu and revision application filed before the Central Government is pending for disposal. Main defence of the defendants is that the inability of the defendants to confirm the auction in favour of the plaintiff was due to the legal proceedings initiated by M/s.Karuna Mines and Minerals and not owing to any fault on the part of the defendants and the plaintiff has forfeited the auction amount entirely due to his conduct.

4. On the above pleadings, two issues were framed in the trial Court. On plaintiffs side, plaintiff was examined as P.W.1 and Exs.A1 to A9 were marked. One Kuppusamy, Village Assistant, Veeritchipalaym, Sankari Taluk, was examined as D.W.1 and Exs.D1 to D3 were marked. Upon consideration of oral and documentary evidence, trial Court held that merely because M/s.Karuna Mines and Minerals have not handed over possession, defendants-Temple was not justified in refusing to pay the amount. Trial Court further held that even without taking steps to get possession of the land in S.No.48/2, the defendants proceeded to auction the mining lease and therefore, the defendants are to blame themselves and cannot withhold earnest money deposit amount paid by the plaintiff and on this findings, the trial Court decreed plaintiffs suit and ordered refund of Rs.2,00,000/- along with interest at the rate of 9% p