9911796707
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Issues Involved:
1. Existence of Partnership 2. Validity of Partnership 3. Entitlement to Return of Amounts 4. Entitlement to Interest Detailed Analysis: 1. Existence of Partnership: The primary issue was whether a partnership did in fact come into existence between the parties. The plaintiffs argued that no valid partnership was formed, while the defendants contended that a partnership was indeed created. The court examined the statements and evidence presented by both parties, including the oral agreements and the payments made by the plaintiffs. The court concluded that a partnership did in fact come into existence between the parties to this litigation. 2. Validity of Partnership: The next issue was whether the partnership was valid under the law. The plaintiffs-respondents raised two objections: - The partnership contravened Section 23 of the Indian Contract Act and the Rules under the Opium Act, 1878. - Such a partnership could not be valid under the Indian Partnership Act. The court examined Section 23 of the Indian Contract Act and the Punjab Opium Orders, 1956, particularly Order 59, which prohibits the transfer or subletting of a license without permission. The court found that an agreement to share profits and losses in consideration of contributing towards the business capital does not constitute a transfer or sublease of the license. The licensee remains personally responsible to the government, and the agreement is neither illegal nor opposed to public policy. The court cited various precedents, including decisions from the Allahabad High Court, Bombay High Court, Punjab Chief Court, and Privy Council, to support this view. Regarding the Indian Partnership Act, the court referred to Sections 4 to 6 and concluded that the essential elements of a partnership-agreement between persons, sharing of profits, and business carried on by some acting for all-were present. The partnership was deemed valid as the plaintiffs, who were non-licensees, were not carrying on the business, but the licensed defendants were acting on behalf of all partners. 3. Entitlement to Return of Amounts: Since the court held that a valid partnership existed, the issue of whether the plaintiffs were entitled to the return of the amounts found due to them from the defendants did not arise. The court stated that the proper remedy for the plaintiffs was to file a suit for dissolution of partnership and rendition of accounts, not for the recovery of amounts as framed in the current suit. 4. Entitlement to Interest: Similarly, the issue of entitlement to interest also did not arise due to the court's finding on the existence and validity of the partnership. The plaintiffs' suits, as framed, were not maintainable. Conclusion: The court accepted the appeals, set aside the judgments and decrees of the lower court, and dismissed the plaintiffs' suits. The court left the parties to bear their own costs throughout.
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