An incoming partner is not liable for the debts of the old firm unless the new firm has assumed the liability to pay the debt and the creditor has agreed to accept the new firm as his debtor and to discharge the old partnership from its liability.

RAMASWAMI, J. :- This is an appeal preferred against the decree and judgment of the learned Subordinate Judge of Devakottai in O. S. No. 137 of 1951.

2. The facts are :- Defendants 1 and 4 and the late Palaniappa Chettiar, husband of defendant 2 and the adoptive father of defendant 3, were carrying on a money-lending business in partnership under the name and style of P. S. SM. Firm in Burma. Palaniappa Chettiar died on 30-12-1932 surviving him his widow, who is defendant 2. It is the case for the plaintiff that the widow was taken in as a partner in the place of her deceased husband and that the firm continued to function with defendants 1 and 4 and defendant 2 Meenakshi Achi as partners.

3. The plaintiff P. S. M. Subramanian Chettiars moneys were in deposit with this firm through the Maral of V. V. of Ariyaludi, since dead. This depositing was in April 1928. It is the case for the plaintiff that the new firm assumed liability to pay the debt and consequently that he, the creditor, has agreed to accept the new firm as his debtor and to discharge the old partnership from its liability.

The new firm has been making payments now and then towards this deposit and by 13-4-1941 the plaintiffs money in deposit in this firm had amounted to Rs. 7873-6-6, the interest stipulated being the current rate of interest prevailing in Rangoon plus one anna. Towards the balance of the amount due under this deposit a kaiyeluthu letter, described as a promissory note, was executed under date 13-4-1941 (Ex. A1) which is reproduced below:

"P.S.S.M. Sitkwin Ariyakudi V. V. Maral

Karaikudi

P.S.M. Subramanian Chettiar

1st Chitrai of Vishu year (13-4-1941)

Executed by Muthukaruppan Chettiar

The amount due from us in settlement of our previous accounts is Rs. 7,873-6-6. We have credited in your name the said sum of rupees seven thousand eight hundred seventy-three annas six and pies six only with interest at Re. 0-1-0 over and above the Rangoon nadappu rate of interest. On the money being demanded we shall pay to your order the principal together with interest thereon and take return of this letter.

(Sd.) P. S. SM. Agent, Muthukaruppan Chettiar."

Payments have been made subseauently and those payments have been endorsed on the back of Ex. A1. These payments have the bar of limitation. Though the balance was demanded by a registered notice dated 20-10-1951 to defendants 1 to 4, they have been evading and no payments have been made.

17. Bearing these factors in mind we have got to examine only the contentions of defendant 2 Meenakshi Achi in these appeals.

The contentions of Meenakshi Achi are as follows :

(1) The Maral has not been proved;

(2) The suit document is not a promissory note and the endorsements on its back are forgeries;

(3) Defendant 2 has never been a partner of this firm;

(4) Even if she is considered to be a partner during the interrugnum between her husbands death and before her adopted son, defendant 3, was taken in as a partner (date unspecified), this debt is not binding on her because it has not been shown that the new partnership assumed the liability to pay the debt and secondly the creditor has not been shown to have agreed to accept the new firm as his debtor and to discharge the old partnership from its liability; and

(5) The suit is, in any event, barred by limitation.

18. Point 1: It is idle to contend that the Maral has not been proved. Two of the partners who were equally liable viz., Subramanian Chettiar (defendant 1) and Somasundaram Chettiar (defendant 4) admit the deposit. The telegram Ex. A34 dated 1-4-1928. the letter Ex. A35 dated 12-4-1928, the Vaddi Chittai Ex. A-36 and the Vaddi Chittai Ex. A-37 referring to the Kaiyeluthu letter relating to the Maral deposit, the letter Ex. A-18 dated 8-9-1932 referring to the Kaiyeluthu letter in the name of V. V. Maral P. S. M. Subramanian Chetti of Ariyakudi as having been delivered to the said person, the Vaddi Chitai Ex. A-38, Ex. A-19 the letter written by Meenakshi Achi calling fo