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Issues:
1. Ownership of immovable properties purchased during partnership. 2. Validity of document Ex. A and requirement of registration. 3. Interpretation of partnership dissolution terms and its impact on property division. 4. Application of Limitation Act to the suit. Ownership of Immovable Properties: The case involves a dispute over the ownership of immovable properties purchased during a partnership. The partners agreed on joint tenancy with equal rights over the properties upon dissolution. The District Judge initially ruled in favor of the appellant, stating the properties belonged exclusively to his father. However, Varadachariar, J., reversed this decision, emphasizing evidence supporting partnership ownership. The judge highlighted that partners are joint owners of assets purchased from partnership funds, as per Section 253 of the Contract Act. Validity of Document Ex. A and Registration Requirement: The pivotal issue revolved around the document Ex. A, which detailed the partnership dissolution terms and property rights. Varadachariar, J., opined that Ex. A did not require registration as it did not transfer property but merely stated existing facts. However, the High Court disagreed, citing Section 17 of the Registration Act, which mandates registration for instruments declaring property rights. The court held that Ex. A needed registration as it declared property rights post-dissolution, rendering it inadmissible as evidence due to non-registration. Interpretation of Partnership Dissolution Terms: The court analyzed the dissolution terms, emphasizing that partners were joint owners of properties until liabilities were settled post-dissolution. The partners did not have specific shares during the partnership, and property division post-dissolution depended on various factors. Ex. A was crucial in declaring post-dissolution rights clearly. The court asserted that the declaration in Ex. A fell within the ambit of Section 17 of the Registration Act, necessitating registration for admissibility. Application of Limitation Act: Lastly, the court addressed the application of the Limitation Act to the suit. The appellant contended that the suit was time-barred under Article 106 of the Limitation Act, not filed within three years of partnership dissolution. Varadachariar, J., ruled in favor of the respondent, stating the suit was not time-barred. However, the High Court reversed this decision, deeming the suit time-barred due to Ex. A requiring registration, rendering it inadmissible as evidence. Consequently, the court allowed the appeal with costs throughout.
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