1951 Present: Gratiaen J. and Swan J.

THE ATTORNEY-GENERAL, Appellant, and HALE,
Respondent

S. C. 329-D. C. Colombo, 73/T (Special)

Estate Duty Ordinance (Cap. 187)-" Property passing on death "-Bona fide alienation operating from time of death-Exemption from estate duty-Sections 6 (a), (b), 10, 20 (1), 21, 24, 25.

Three solicitors were practising in partnership. It was clear from the partner -ship deed that they had undertaken to work with one another in partnership to their mutual financial advantage and that their engagement was " a business deal ". Clause 11 provided : " In case of the death or retirement of any partner during the continuance of the partnership the share of such deceased or retiring partner in the Reserve Fund and in the capital assets and goodwill of the partnership and in the office furniture books and papers shall accrue to and be purchased by the surviving or continuing partners or partner in the proportions in which they are entitled to the net profits of the business ".

One of the partners died on 29th March, 1944. On his death, therefore, Clause 11 of the deed of partnership came into operation and his in