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1962 Supreme(All) 52

IN THE HIGH COURT OF ALLAHABAD
K. B. Asthana, J.
GOPI NATH - Appellant
Versus
SATISH CHANDRA - Respondents
First Appeal 243 Of 1956
Decided On : 03/12/1962

Advocates Appeared:
JAGDISH SVARUP, K.C.SAXENA, S.N.MISRA

Headnote:

K. B. ASTHANA, J. ( 1 ) THIS is a defendantss appeal against whom a preliminary decree directing him to render accounts of the firm Ram Ratan Shyam Manohar from the year 1928 has been passed.

Fact of the Case:

The plaintiff came to the Court with the allegation that his father Shyam Manohar Lal and his grandfather Ram Ratan Lal were members of a joint Hindu family and carried un Sarafa business; that the defendant Gopinath who was an experienced hand in the wholesale cloth business persuaded the plaintiffs father and his grandfather to start a firm in the name and style of Ram Ratan Shyam. Manohar dealing in cloth business; that the said firm was started in the year 1918 and Gopinath defendant was taken in as a partner in the said firm.

Finding of the Court:

The learned Judge of the Court below has found that the act of execution of the document in question was an intelligent act on the part of Smt. Phula Devi but then he observed that to bind the minor ward by the act or deed of certificated guardian mere proof of intelligent execution of the deed by the guardian is of no consequence, it must further be proved that the disputed transaction was for the benefit of the minor or minors properties.

Issues: 1. Whether the suit of the plaintiff was barred by limitation 2. whether the suit of the plaintiff was not maintainable in view of the final settlement of the accounts by Smt. Phula Devi, the certificated guardian of the plaintiff which transaction is evidenced by the deed dated 3rd August 1935 (exhibit A. 6) on record.

Ratio Decidendi: The plaintiffs case originally in the plaint was that Smt. Phula Devi who was a Pardanashin lady was made to execute this document and give a discharge to the defendant on account of fraud played upon her by Mahesh Prasad and the defendant and on account of undue influence brought to bear upon her by Mahesh Prasad.

Final Decision: The result, therefore, is that this appeal succeeds. The judgment and the decree of the Court below are set aside and the plaintiffs suit is dismissed with costs throughout.

K. B. ASTHANA, J.

( 1 ) THIS is a defendantss appeal against whom a preliminary decree directing him to render accounts of the firm Ram Ratan Shyam Manohar from the year 1928 has been passed.

( 2 ) THE plaintiff came to the Court with the allegation that his father Shyam Manohar Lal and his grandfather Ram Ratan Lal were members of a joint Hindu family and carried un Sarafa business; that the defendant Gopinath who was an experienced hand in the wholesale cloth business persuaded the plaintiffs father and his grandfather to start a firm in the name and style of Ram Ratan Shyam. Manohar dealing in cloth business; that the said firm was started in the year 1918 and Gopinath defendant was taken in as a partner in the said firm.

( 3 ) ACCORDING to plaintiffs case the joint family of the plaintiff was to share the profits and losses to the extent of one half share and the defendant was to share the profits and losses to the extent of one half. It was further pleaded that the plaintiffs joint family was to finance the business and was to get interest at the rate of 10% per annum on their investment, while the defendant on account of his past experience was to manage the business and to remain in charge of the same and the duly of maintaining proper and regular account books of the business was that of the defendant and he was also under a duty lq explain the accounts of the business to the joint family whenever asked to do so. The plaintiffs case further was that a sum of Rs. 60,000/- was invested by the joint family in the said firm. It was further alleged that in the year 1928 Shyam Manohar plaintiffs father died when the plaintiff himself was a minor. It was also alleged that the grandfather of the plaintiff Ram Ratan Lal who has an old man was not interested in the affairs of the family and he being shocked by the death of his only son did not look after the interests of the family properly, thus giving Gopinath a free hand to deal with the joint family investment in the firm. It was pleaded by the plaintiff that after the death of his grandfather Ram Ratan in 1934 his mother Smt. Phula Devi was appointed as his certificated guardian by the District Judge of farrukhabad and she without understanding the proper accounts and on the persuasion of mahesh Prasad, the maternal uncle of the plaintiff executed a deed of agreement in settlement of the final accounts of the partnership firm and as this agreement was brought about by fraud and undue influence it was not binding on the plaintiff. It was further pleaded that the agreement was against plaintiffs interest inasmuch as Smt. Phula Devi was persuaded to settle the accounts on payment of a very small sum. According to the plaintiff he attained majority on the 16th July 1948 and called upon the defendant to render and explain the accounts but he did not pay any heed. The plaintiff eventually was compelled to send a telegraphic notice and as well as a registered notice to the defendant for rendering to him the accounts and as the defendant failed to do the same, hence the suit. The plaintiff further alleged that the defendant utilised all the assets of the said firm in his own firm but this case seems to have been given up at the trial.

( 4 ) THE defendant contested the claim of the plaintiff and in his written statement raised the following main pleas. It was pleaded by him that Shyam Manohar had entered into the partnership in his own right and not as a member of the joint Hindu family and the firm Ram ratan Shyam Manohar was started in 1918 in which the defendant and Pt. Shyam Manohar were partners, shared, protits and losses to the extent of half and half each and on the investment made by any of the partner interest of -7/9/ per cent per month was to be paid; that the business of the partnership was carried on till sometime after two months of the death of Shyam Manohar Lal which occurred on 26th of August 1928 and the partnership stood dissolved from that date; that pt. Ram Rat

























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