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2014 Supreme(Mad) 479

HIGH COURT OF JUDICATURE AT MADRAS
PUSHPA SATHYANARAYANA, J.

Mrs. Halima Bai
Versus
Sparkle-Ads-Firm Rep. By Its Partners & Others
A.S. No. 79 of 2010
Decided on: 26-02-2014

Advocate Appeared
For the Appellant:H. Nazirudeen, Advocate.
For the Respondents:R1, R3 & R4, R. Revathy, R2, P. Karl Marx R5, R. Tholgappian, Advocates.

Headnote:Partnership Act, 1932, Section 37 – An outgoing partner cannot be expected to claim profit of the partnership firm after she has left. If the plaintiff is aggrevied that her share from the account of partnership firm has not been paid to her, she should go in appeal against preliminary decree. Same cannot be decided in final proceedings.

JUDGMENT

1. This appeal is directed against the Decree and Judgment dated 27.01.2009 passed in final decree application in I.A.No.13516 of 2008 in O.S.NO.5151/1996, on the file of the VII Additional City Civil Court, Chennai.

2. The plaintiff in whose favour a preliminary decree was passed for accounts of the first defendant partnership firm from 03.04.1992 to 17.01.1994 and for 1/4th share in the assets and liabilities of the first defendant Partnership Firm, has filed the final decree application in I.A.No.13516/2008. Aggrieved by the order passed in the said Interlocutory Application, the above appeal is preferred.

3. For the sake of convenience, the parties are referred to as stated in the suit.

4. The case of the plaintiff is that the first defendant is the partnership firm comprising of four partners i.e. the plaintiff and 2 to 4 defendants by virtue of partnership deed dated 03.04.1992. The partnership firm was engaged in advertising business and allied matters. Each of the partner has contributed a sum of Rs.10,000/- towards share capital and the partnership was one at will. Whileso, the plaintiff expressed her willingness to retire from the partnership firm and sent letter on 17.01.1994. The said letter was acknowledged by the defendants 2 to 4 by letter dated 24.01.1994, confirming that the plaintiff was deemed to have retired from the partnership firm with effect from 18.01.1994. Though the plaintiff retired from the partnership firm, the existing partners reconstituted the deed of partnership and carried on their business. It was contended by the plaintiff that the partnership firm did not settle her accounts on retirement despite several demands and that she demanded to settle all her share in respect of transactions from 03.04.1992 to 18.01.1994, till the date of settlement of her dues. The plaintiff also had given break-up of the amounts that she is entitled to from the partnership firm in paragraph 8 of the plaint, as follows:

PLAINTIFF'S ONE FOURTH SHARE

Building Rs.7 Lakhs 1,75,000

Land Rs.85,000/- 21,250

Hoarding Rs.80,000 (3 Nos) 20,000

3 Wheeler Rs.40,000/- 10,000

2 Wheeler Rs.16,000/- 4,000

Phone Rs.20,000/- 5,000

Furniture (Office) 20,000

God will 2,50,000

Profits 2,50,000

Miscellaneous 45,750

Total 8,01,000


5. The suit was contested by the defendants who are the other partners on the ground that the plaintiff was acting detrimental to the interest of the partnership firm. It was further contended that the suit was not maintainable as the plaintiff only retired voluntarily from the partnership firm and the partnership firm was not dissolved as alleged by her.

6. Before the trial Court, the plaintiff examined herself as P.W.1 and Exs. A1 to A16 were marked on her side. On the side of the defendants, D.W.1 was examined and Exs.B1 to Ex.B43 were filed on behalf of them.

7. Based, on the pleadings as well as the based on the oral and documentary evidence, the learned VII Additional City Civil Court had decreed the suit declaring that the plaintiff retired from the first defendant, partnership firm on 17.01.1994 and declared further that the plaintiff was entitled to preliminary decree for accounts from 03.04.1992 to 17.01.1994 and entitled to 1/4th share in the assets and liabilities profits in the partnership firm. Insofar as the relief of injunction is concerned, the suit was dismissed. Based on the preliminary decree, the interlocutory application in I.A.No.13156 of 2008 was filed for passing of the final decree in which a commissioner was appointed. The defendants/respondents herein also filed their counter and calculated the assets and liabilities out of which 1/4th share of the plaintiff was arrived at. The list of assets and liabilities and 1/4th share entitled to by the plaintiff was furnished in paragraph 11 of the counter affidavit filed by the defendants/respondents. Though the plaintiff had calculated her share from the partnership as Rs.9,00,000/-, the defendants in the counter had stated that there is
























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