Beebee Ammal V. Ibrahim Saibo

1938 Present: Hearne J. and Wijeyewardene A. J.

BEEBEE AMMAL v. IBRAHIM SAIBO.

341-D. C. Badulla, 5,808.

Partnership-purchase of land by partners-Death and retirement of partners -Formation of new partnership-Transfer of beneficial interest in property purchased to new partnership-Rights of heirs of deceased partners-Partition action.
 
Where land was conveyed to seven persons trading in partnership ?as K. A. S. & Co., and their successors and assigns?, the property vested in the partnership and the beneficial title was in the partners as such.

On the death or retirement of a partner the beneficial interest in the property remained to the surviving partners, and on the formation of a new partnership such beneficial interest became an asset of the. new partnership for the purpose of its business.

The transfer of this beneficial interest from one partnership to another does not require a notarial instrument.

THIS was a partition action. The facts are stated by Wijeyewardene A. J. as follows:-

The plaintiffs respondents instituted this action under Ordinance No. 10 of 1863 for the partition of a land called Kandewatta alias Childer's lot, situated at Haputale. The seventh, eighth, ninth, tenth, eleventh, twelfth, thirteenth, fourteenth and sixteenth defendants-appellants filed answer claiming the property exclusively and stating that the property was originally partnership property belonging to the branch business of the firm known as K. Abram Saibu & Company, carrying on a business at Haputale and that by certain deeds the property has now devolved on them subject to certain rights of the plaintiffs in the legal estate in respect of the property. The first six defendants have not filed an answer.

It is necessary to set out in detail the various transactions with regard to the partnership and the property as they have an important bearing on the questions of fact and law which arise in this case.

By indenture P 27 of April 4, 1902, the following seven persons formed themselves into a partnership for the purpose of ?establishing and opening boutiques, shops, stores, bakeries and carrying on a supply of contract business as well as any other partnership business under the style and firm of K. Abram Saibu & Company" for three years or a longer period at the discretion of the principal partners -K. Ibrahim Rawther, Mohamadu Saibu, Kader Ibrahim Saibu, Sheik Adam Saibu, P. Esubu Saibu, A. K. Ahamed Saibu.

By deed P 3 of May 1, 1902, one J. L. Devar sold the property in question to these seven individuals ?trading in Ceylon as K. Abram Saibu & Company?.

During the pendency of this partnership, the second partner died and the sixth partner retired from the business. Te estate of the second partner was administered in the District Court of Kandy. P 7 of 1909 is the inventory filed by the administrators.

By indenture P 28 of September 17, 1906, the first, third, fourth, fifth and seventh partners of the earlier partnership and one Kader Batcha Saibu agreed to carry on the same business as under P 3 for a term of three years from August 6, 1906, or ?for a longer period not exceeding six months?.

The first and seventh partners of the first partnership who were also partners of the second partnership died in 1911 and 1909 respectively. Their estates were administered in the District Court of Kandy. P 4 and P 6 of 1914 are the inventory and administrator's deed in respect of the estate of the first partner while P 14 of 1912 is the inventory in respect of the estate of the seventh partner.

By the indenture P 29 of March, 1912, the third, fourth and fifth partners of the first partnership, some of the heirs of the first partner of the first partnership including Ibrahim Saibu, Kader Batcha Saibu, who was a partner of the second partnership, and some others agreed to carry on a business similar to the business of the first partnership und

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