V.C. George J:

We had allowed this appeal on the 6 September 1994. We now give our reasons for doing so.

In originating summons D2-31-198-88 the High Court had on 6 March 1990 declared that the partnership firm known as Tai Kwong Goldsmiths & Jewellers "do stand dissolved". The Court went on to order that:

Dato Rohailan Bin Mohamad be and is hereby appointed the receiver of the said firm to get in and realise the assets, accounts and monies receivable by the firm and determine its liabilities for the purpose of a dissolution of the said business and to do all that is necessary and/or needful to undertake his task under s. 46 of the Partnership Act, and make appropriate settlement and distributions there under.

Section 46(b) of the Partnership Act, 1961 provides that on the dissolution of a partnership its assets should be distributed in the following manner and order:

(i) in paying the debts and liabilities of the firm to persons who are not partners therein;

(ii) in paying to each partner rateably what is due from the firm to him for advances as distinguished from capital;

(iii) in paying to each partner rateably what is due from the firm to him in respect of capita