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IN THE HIGH COURT OF PUNJAB AND HARYANA AT CHANDIGARH
RAJBIR SEHRAWAT, J.
Banarsi Dass(deceased) through LRs and another - Appellants
Versus
Ramji Dass and others - Respondents
RSA No. 2602 of 1988(O&M)
Decided on : 14-03-2018
Recovery Suit - Partnership Firm - Money Lender's Act, Regulations of Accounts Act - [SUMMARY]
Fact of the Case:
The plaintiff filed a suit for recovery against the defendants, claiming unpaid amounts and interest from partnership firms and properties. The Trial Court dismissed the suit, citing lack of evidence for the claimed agreement and non-mentioning of the agreement in the dissolution deed. The lower Appellate Court reversed the judgment, deeming the agreement as valid and ordering the suit to be decreed. The defendants filed a regular second appeal against this decision.
Finding of the Court:
The Trial Court dismissed the suit due to lack of evidence for the claimed agreement and non-mentioning of the agreement in the dissolution deed. The lower Appellate Court reversed the judgment, deeming the agreement as valid and ordering the suit to be decreed. The High Court set aside the lower Appellate Court's decision, finding the judgment and decree as perverse, and allowed the appeal, ordering the suit to be dismissed.
Issues: Validity of claimed agreement, non-mentioning of agreement in dissolution deed, outstanding amount due to plaintiff from the firm, burden of proof on defendant
Ratio Decidendi: The Court found the claimed agreement to be invalid due to lack of evidence and non-mentioning in the dissolution deed. It also held that the burden of proof was on the plaintiff to substantiate the outstanding amount due from the firm.
Final Decision: The High Court set aside the lower Appellate Court's decision, finding the judgment and decree as perverse, and allowed the appeal, ordering the suit to be dismissed.
Rajbir Sehrawat, J.
CM No. 13938-C of 2010
1. This is an application for impleading the legal heirs of appellant No. 1 Banarsi Dass.
2. For the reasons mentioned in the application, the persons mentioned in para No.2 of the application are ordered to be brought on record as legal representatives of appellant No. 1 subject to just exceptions.
3. Civil misc. application is allowed.
RSA No. 2602 of 1988
4. This is a second appeal filed by the defendants in a suit for recovery; challenging the judgment of reversal passed by the lower Appellate Court; whereby the appeal of the plaintiff was accepted and the suit was ordered to be decreed.
5. For convenience, the parties herein would be referred to as the plaintiff and defendant as they were described in the original suit.
6. The brief facts of this case are that the plaintiff had filed the suit for recovery claiming that the plaintiff and defendants No. 1 to 3 and 5 were the owners of partnership firm; defendant No. 4, namely M/s Banarsi Dass Ramji Dass Steel Rolling Mills, Amloh Road, Mandi Goobindgarh. The plaintiff had 30 shares out of 100 while the remaining 70 shares were owned by defendants No.1, 2, 3 and 5. Beside this the plaintiff and defendant No. 1 were the owners of another firm known as M/s Gobindgarh Iron Store, Sector 18-C, Chandigarh. In this firm, the plaintiff had 44 shares while defendant No. 1 had 56 shares out of 100. Beside these, there were two other properties, namely M/s Banarsi Dass Ramji Dass; carrying on the business of Commission Agent at Mandi Gobindgarh and two godowns jointly owned by the plaintiff and defendant No. 1, situated at Battan Lal Road. A dispute has arisen between the parties. As a result thereof, the plaintiff agreed to relinquish his share in above said two firms, including the goodwill etc. and defendant No. 1 agreed on 01.10.1966 to pay an amount of Rs. 1 lakh to the plaintiff for the same. In alternative defendant No. 1 further agreed to pay the interest at the rate of 1% per month w.e.f. 1.11.1966 till the amount of Rs. 1 lakh was paid. Defendant No. 1 neither paid the said amount of Rs. 1 lakh nor was any interest paid. Therefore, the plaintiff became entitled to get an amount of Rs. 1 lakh as agreed and the interest thereon upto 30.09.1969 amounting to Rs. 35,000/-. It was claimed that defendant Nos. 1 and 2 are jointly and severally liable to pay the amount. Defendant No. 1 agreed to pay the said amount as per the agreement so he was liable. Defendant No. 2 is liable because he approved the agreement and benefited from acting upon that agreement. Further it was claimed that on 14.10.1966 the plaintiff and the defendants No. 3 and 5 agreed to retire from partnership firm M/s Banarsi Dass Ramji Dass Steel Rolling Mills, Amloh Road, Mandi Gobindgarh i.e., defendant No. 4 and defendant Nos. 1 and 2 agreed to continue as partners of the said firm from that date onward. Hence defendants No. 1 and 2 became the sole proprietor of the said firm vide agreement dated 14.10.1966. On 14.10.1966 an amount of Rs. 53,522.20 ps. was due to the plaintiff from the said firm M/s Banarsi Dass Ramji Dass Steel Rolling Mills, Amloh Road, Mandi Goobindgarh. The firm was liable to pay the interest on the said amount @12% per annum at the end of the financial year ending on 31st March. Even this amount had become Rs. 75080.50/- ps. upto 30.09.1969. Since the plaintiff Nos. 1 and 2 were the only partners of the firm defendant No.4, therefore, they are liable to pay this amount as well. Accordingly, it was claimed in the suit that by clubbing both these amounts a total of Rs. 2,10,080.55/- ps. were due to the plaintiff from defendant Nos. 1, 2 and 4. They have been evading the payment of same and has refused to pay the same. Hence the suit was filed.
7. Upon notice, the defendants filed written statement. Besides taking routine preliminary objections, it was averred in the written statement that the dissolution of the two firms took place on 14.10.1986 and
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