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1928 Supreme(Oudh) 59

Nem Das – Appellant
Versus
Kunj Behari Lal – Respondent


Judgement Key Points

What is the proper grounds and procedure for expelling a partner under Clause 12 of the partnership deed, including requirements for notice, opportunity to defend, and repayment of contributions?

What is the correct relief or remedy when a partner is expelled but the contributions have not been refunded or tendered, and can expulsion be upheld or modified under such circumstances?

What is the effect of potential breaches by other partners on the validity of the partnership, and how should the court balance dissolution versus continued partnership with buy-out options under Clause 13?


JUDGMENT

1. This is a defendant's, appeal against the decree of the learned Additional Subordinate Judge of Bara Banki, dated 10th March 1927, granting; the plaintiff-respondent a declaration that he is still a member of a certain firm. The decree refuses dissolution) of partnership. The plaintiff-respondent has riled a cross-objection against the refusal to dissolve partnership. The following facts are stated to show the nature of the dispute. George Perfect-owned a patent for the manufacture oft a certain type of mills for pressing sugarcane. He installed a factory close to Bahramghat in the Bara Banki District for the manufacture of these mills. Hia main business consisted in leasing these mills to cultivators during the cane pressing season, and the profits were-derived from the excess in rental of mills, over the working expenses of manufacture and upkeep. There were similar concerns in the neighbourhood one of which was owned by the plaintiff-respondent Kunj Behari Lal and another of which was owned by a man called Sheoratan. Perfect sold his business as a going concern to the plaintiff and five other persons. These five persons are Ajudhia Prasad, brother of the plaintiff, Ne

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