2018 Supreme(P&H) 2216
IN THE HIGH COURT OF PUNJAB AND HARYANA
Before
Hon’ble Mr. Justice Amit Rawal
RSA No.1345 of 2012 (O&M)
Harbans Lal (deceased) through LRs & Ors.
v.
Sarla Devi (deceased) through LRs & Ors.
{Decided on 03/05/2018}
For the Appellants:Mr. J.S.Lalli, Advocate.
For the Respondents:Mr. Bikramjit Arora, Advocate.
Partnership – Property of firm—Suit for partition is not maintainable – Only remedy is suit for rendition of account within limitation of 3 years.
Headnote:(A) Partnership Act, 1932, S.29 & S.48 – Rendition of accounts – Property of firm – If the property has been purchased in the name of partnership firm, the suit for partition is not maintainable – Only remedy is rendition of account and suit for same has to be filed with limitation period of 3 years from date of dissolution of partnership.
(B) Partnership Act, 1932, S.29 & S.48 – Rendition of accounts – The partnership act contemplates liquidation assets of partners as a preliminary to the settlement of accounts between the partners on dissolution of firm – In other words, the entire process would be taken under 1932 Act, irrespective of any agreement between the partners. (Para 14)
Mr. Amit Rawal, J.:- The appellant-defendants are in Regular Second Appeal against the concurrent findings of facts and law, whereby, suit for partition of the following properties:-
i) property measuring 3582 square yards bearing no.H-1 situated at Textile Colony, Industrial Area-A, Ludhina.
ii) three shops situated at Chaura Bazar, Ludhiana.
iii) one shop situated at Gokal Market No.2, Moti Bazar, Amritsar and rendition of accounts and mesne profit, has been decreed by the trial Court and affirmed by the Lower Appellate Court.
2. The suit was filed in respect of properties mentioned above on the premise that property at sr. no.(i) was purchased by defendant no.7 -firm M/s Jagan Nath Piara Lal, vide registered sale deed dated 28.11.1960. The property at serial no.(ii) was under the tenancy of defendant no.7 and similarly one shop situated at Gokal Market No.2, Moti Bazar, Amritsar was also under tenancy of defendant no.7 and as such, the said three shops situated at Chaura Bazar, Ludhiana as well as one shop situated at Gokal Market No.2, Moti Bazar, Amritsar were taken on rent by defendant no.7 for carrying on its business through its partners. The partnership deed dated 1.4.1990 consisted of partners Makhan Lal, Madan Lal having 25% share each and Jagdish Chand, Harbans Lal, Om Parkash, Ved Parkash and Padam Kumar having 10% share each. Makhan Lal died on 30.10.1990. During his life time, he executed a legal and registered Will dated 16.4.1990 bequeathing his properties both movable and immovable in the name of his wife-Sarla Devi/plaintiff. Owing to aforementioned Will, plaintiff thus, became of the owner of the property to the extent of 25% share and regarding tenancy of other three shops, landlord was entitled to seek rendition of accounts and also partition in respect of properties referred to above.
3. The suit was contested by the appellant-defendants by raising various preliminary objections qua non-maintainability, jurisdiction and payment of Court fees. On merit, it was admitted that property at serial no.1 was purchased in the name of firm on 28.11.1960 consisting of 11 partners. The aforementioned firm was dissolved, w.e.f. 10.09.1990 and new partnership came into existence. In other words, it was averred that Makhan Lal and Madan Lal had resigned from the deed/exited from the partnership deed. The property measuring 63.1/2 square yards out of partner no.1 was sold by the firm through its partners namely Om Parkash, Ved Parkash, Jagdish Chand, Harbans Lal and Tipta Maheswari for a consideration of Rs.1,80,000/- to M/s International Cycle Gear through its partner Bharat Bushan vide registered sale deed dated 21.01.1993 at Ludhiana. The aforementioned sale deed was witnessed by Inder Mohan and Makhan Lal. Another sale deed dated 25.1.1993 was witnessed by Madan Lal son of Piare Lal, outgoing partner. Execution of the sale deed was well within the knowledge of respondent-plaintiff. Inder Mohan had given an undertaking on his behalf and being attorney of Sarla Devi as per the Attorney dated 18.2.1991. As regards the shops under tenancy, it was stated that firm was not doing good business, therefore, was not earning profit, in essence, the firm did not do business since 1977. The Will was emphatically denied. Makhan Lal was left with no interest or title in the property since 10.09.1990 as entire accounts were settled for a sum of Rs.18,077.12 paisa.
4. Replication was filed controverting the averments made in the written statement The trial Court framed as many as eight issues including the issue of Relief. The plaintiff examined following witnesses:-
PW1
Balwinder Kaur-Clerk
PW2
Manmohan Bamba, Advocate
PW3
Harbhajan Singh Chawla, Deed Writer
PW4
Arun Bawa, Clerk
PW5
Raj Kumar
PW6
Arun Kumar
PW7
Rajan Kapoor
PW8
Inder Mohan
On the other hand