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Issues: Limitation period for the plaintiff's suit, ownership rights over the ginning factory, entitlement to profits, dissolution of partnership upon death, applicability of Section 253(10) Contract Act, correct article under the Limitation Act, benefit of Section 41 T.P. Act for defendant 9.
Analysis: The plaintiff, Mt. Basanti Bibi, filed an appeal against the dismissal of her suit on the grounds of limitation. The suit concerned her claim as the sole owner of a share in a ginning factory and cotton press in Hathras. The plaintiff sought a declaration of ownership and profits dating back to 1910-11. The trial court based its decision on the dissolution of the partnership upon the death of Ram Narain, the plaintiff's father, leading to the claim being time-barred. The court also considered the applicability of Section 253(10) of the Contract Act in determining the partners' relations. However, the High Court disagreed with the trial court's interpretation of the partnership's dissolution and the application of Section 253(10). The High Court analyzed the nature of the partnership in the factory, emphasizing that the ownership of the factory by multiple individuals did not constitute separate partnerships within the larger partnership. The court concluded that there was only one partnership owning the entire factory, rejecting the trial court's view. Additionally, the court examined the implications of Section 253(10) and inferred an implied contract among the partners that the death of one partner would not dissolve the partnership, as evidenced by the continuous operation of the business despite individual deaths. Regarding the limitation period, the High Court determined that Article 141 of the Limitation Act applied to the suit, as it involved possession of immovable property by a Hindu female inheriting from her deceased mother. The court reasoned that since the plaintiff's title to the property was still subsisting, the suit was within the 12-year limitation period. This decision overturned the trial court's application of Article 120 and validated the plaintiff's claim within the prescribed timeframe. In evaluating the benefit of Section 41 of the Transfer of Property Act for defendant 9, the court found that the defendant had failed to prove that he had conducted the necessary inquiries before acquiring the share in the partnership. Consequently, defendant 9 was deemed ineligible for the protection under Section 41. The High Court set aside the trial court's decree and remanded the case for further consideration on remaining issues, highlighting the potential application of Article 62 of the Limitation Act for certain defendants and clarifying that costs would be determined as part of the ongoing proceedings.
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