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Issues involved: Jurisdiction of the court, validity of the suit under Section 69 of the Indian Partnership Act, and levy of interest at 18% p.a.
Jurisdiction of the court: The appellant contended that the court at Hanagal had no jurisdiction as the defendant resided in Dharwad. However, the trial court, citing Section 16 and 20 of the Civil Procedure Code, held that the suit could be instituted where the cause of action arose, which in this case was Hanagal. The High Court upheld this decision, stating that the court at Hanagal was justified in entertaining the suit. Validity of the suit under Section 69 of the Indian Partnership Act: The plaintiff, a partner in a rice industry, had entered into a contract for supply of paddy husk. The defendants argued that the suit was not maintainable as the plaintiff was not a registered firm under Section 69 of the Indian Partnership Act. The trial court, based on documentary evidence of firm registration, deemed the suit maintainable. The High Court agreed, emphasizing that the defendant did not challenge this evidence in a higher forum, as required by law. Levy of interest at 18% p.a.: The trial court justified the levy of interest at 18% p.a. based on the commercial nature of the transaction and relevant clauses in the agreement, as well as Section 34 of the Civil Procedure Code. The High Court found this decision to be reasonable and upheld it. In conclusion, the High Court dismissed the appeal filed by the 3rd defendant, affirming the trial court's decision to decree the suit in favor of the plaintiff. The court found no merit in the appellant's contentions regarding jurisdiction, validity of the suit under Section 69 of the Indian Partnership Act, and the levy of interest at 18% p.a.
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