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2013 Supreme(Mad) 2278

IN THE HIGH COURT OF JUDICATURE AT MADRAS
S. PALANIVELU, J.
1.Khaja Mohideen
2.Khaleelur Rahaman - Plaintiffs/Appellants
Vs
1.M.Mohammed Saliha (died)
2.Kudaisa Bibi
3.Hyder Ali
4.Safear Ali
5.Misiria Begam
6.B.S.Perumal Chetty
7.Rahamathullah
8.Dharapuram Dye Chemicals by its Managing Director Sri.Palaniswamy Gounder
9.Basheer Ahmed and Brothers, a firm by Partner Basheer Ahmed
10.Saburabibi
11.M.Mohaammed Farook
12.Rukaya Bibi
13.M.Syed Ibrahim (alias) Maulana
14.M.Jafer Sadiq
15.M.Mohammed Mubarak Ali
16.M.Mohammed Iliyas
17.S.Syed Ali Fathima @ Aliar
18.S.Jaibuneesa Begam alias Makkama
19.Arifa Begam
20.S.Kathija Begam
21.J.Sundaravadivel
22.G.Rajkumar
23.Muthurathinam - Defendants/Respondents
A.S.No.839 of 1995
Decided On : 04.07.2013

Advocates:
Advocate Appeared:
For Plaintiffs... Mr.S. Parthasarathy Senior Counsel for M/s.R.Asokan
For Respondents ... Mr.R.M.Krishnaraju [for R-6] Mr.M.V.Krishnaraju [for R-8 to R-11 & R-23] Mr.V.Bharathidasan [for R-13, 18 & 20] Ms.A. Bharathi for M/s. Kandavel Duraisamy [R-21 & R-22] R-2 to R-5 No appearance R-14 to R-17, R-19 No appearance R-1 & R-12 died R-7 Given up

The legal principle established in the judgment emphasizes the need for an implied or express contract among partners for treating property as partnership property, as per the provisions of the Partnership Act, 1932, Section 14 and 253.

Headnote:

Partition - Partnership Property - 1948 Partnership - Dissolution - Registered Partition Deed - 1970 - Suit for Partition and Separate Possession - [PARTITION] - [PROPERTY LAW] - [Partnership Act, 1932, Section 14, 253] - The court discussed the legal implications of the partnership property, the rights of the partners, and the validity of the registered partition deed dated 03.06.1970. The court emphasized the need for an implied or express contract among the partners for treating the property as partnership property and cited relevant legal provisions and case law to support its decision.

Fact of the Case:

The suit was filed for partition and separate possession of properties that were part of a 1948 partnership and later subject to a registered partition deed in 1970. The plaintiffs, sons of Haji Sheik Dawood Saheb, sought their entitlement to the properties against the defendants, including their senior paternal uncle and his heirs.

Finding of the Court:

The court found that the first defendant, who had allowed his properties to be treated as partnership properties, was estopped from denying the plaintiffs' entitlement to a share in the suit properties. The court set aside the trial court's judgment and passed a preliminary decree for partition of 3/8th share in the suit properties in favor of the plaintiffs.

Issues: The issues included whether the first defendant's properties were treated as partnership properties, the entitlement of the plaintiffs to partition, and the relief entitled to the partners.

Ratio Decidendi: The court held that the first defendant, by participating in the registered partition deed, was estopped from denying the plaintiffs' entitlement to a share in the suit properties. The court emphasized the legal principles of partnership property under the Partnership Act, 1932, Section 14 and 253, and cited relevant case law to support its decision.

Final Decision: The court allowed the appeal, passing a preliminary decree for partition of 3/8th share in the suit properties in favor of the plaintiffs and directing rendition of accounts as per para 20(b) of the plaint.

JUDGMENT

Suit is filed for partition and separate possession.

2. The following are the brief allegations contained in the plaint -

2[a] The plaintiffs are brothers being the sons of Haji Sheik Dawood Saheb. The first defendant is the senior paternal uncle of the plaintiffs. The second defendant is the son of the first defendant. The plaintiffs had another senior paternal uncle by name Haji Mohammed Hussaian. He died in the year 1968. He had two sons and a daughter by names Habibullah, I.Ubaidullah and Misiria Begam. Habibullah died leaving behind the defendants 3 to 5 as his legal heirs. Ubaidullah also died subsequently as bachelor and his heirs are defendants 3 to 6. The mother of the 6th defendant Rafia Bibi also died in the year 1975 and her heirs are the defendants 3 to 6 herein.

2[b] In the year 1948, two business were started in partnership between N.A.Ardhanariappa Mudaliar, N.A.Ayyaswami Mudaliar sons of Arunachala Mudaliar and the plaintiffs two uncles Mohammed Hussain Saheb, Mohammed Abdul Khader, the first defendant herein and the plaintiffs father Haji Sheik Dawood Saheb. Subsequently the members of the families of the partners became partners. The first business was bus transport company run under the name and style of A.M.S. Motor Service and another business was a rice and oil mill run under the name of Eraichi Masthan Rice and Oill Mill at Nanjayyampalayam, Coimbatore.

2[c] The aforesaid firm did not see eye to eye which resulted in the firm being dissolved by a deed of dissolution dated 06.07.1968. By that time, the father of the 6th defendant died. After the said dissolution, all the partners entered into a registered partition deed on 03.06.1970 in respect of all the parties of the erstwhile partnership firm. Under the said partnership deed, N.A.Ayyaswami Mudaliar and his two sons Arunachalam and Balasubramaniam were allotted 'A' Schedule properties therein and Nos.4 to 11 therein who are defendants 1, the father of the plaintiffs, the 2nd defendant, the plaintiffs herein, first plaintiff No.7 therein and Rafia Bibi, their mother respectively were allotted 'B' Schedule properties therein. By virtue of the partition deed dated 03.06.1970, eight persons mentioned above became jointly entitled to all the properties covered under 'B' Schedule and each party is entitled to an 1/8th share in all those properties.

2[d] The first plaintiff became entitled to 1/8th share and the 2nd defendant also became entitled another 1/8th share as per the partition deed dated 03.06.1970. The plaintiffs father who was also entitled to 1/8th share died in the year 1979 leaving behind the plaintiffs, a widow by name Hajara Bibi and 5 daughters by names Noor Jahaan Sirajunnissa, Hamurunnissa, S.Sabirunnissa and K.Thanjunnissa. The plaintiff's sister and mother executed a registered release deed in favour of the plaintiff on 27.06.1984 and therefore the plaintiffs have become entitled to 1/8th share of their father.

2[e] The 'B' Schedule properties of the partition deed comprise of a building at Udumalpet and the present suit properties. The plaintiffs as also all other owners who were allotted 'B' Schedule properties sold the building at Udumalpet to one T.Chinnaswami Chettiar on 16.09.1970. The first defendant is entitled to only 1/8th share in the suit properties who was allotted under the partition deed dated 03.06.1970 and so also the second defendant. The plaintiff's senior paternal uncle's widow Rafia Bibi was entitled to 1/8th share and she died during 1975 leaving behind two sons and a daughter. Her 1/8th share devolved on them. Rafia Bibi's son Habibullah was entitled to 1/8th share as per the partition deed dated 03.06.1970. He died and his share devolved upon defendants 3 to 5. Ubaidullah, another son of Rafia Bibi died as bachelor and his share devolved on the defendants 3 to 6 herein. The 6th defendant became entitled to a share as the heir of her mother and also as heir to her brother Ubaidullah. The defendants 3 to 6 are e
































































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