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Issues Involved:
1. Dissolution of Partnership and Ownership of Looms 2. Hire Purchase Agreement and Breach 3. Jurisdiction of City Civil Court 4. Maintainability of the Suit and Court Fees 5. Interim Relief and Appointment of Receiver 6. Determination of Preliminary Issue of Jurisdiction Detailed Analysis: 1. Dissolution of Partnership and Ownership of Looms The partnership firm, Bhuvaneshwari Silk Mills, was dissolved on August 25, 1977, by a deed of dissolution. Under the settlement, the plaintiff became the owner of 16 powerlooms, while the 1st defendant received 8 looms. This dissolution led to the plaintiff claiming ownership of the looms and seeking to enforce his rights against the defendants. 2. Hire Purchase Agreement and Breach On October 5, 1977, the plaintiff and the 1st defendant entered into a hire purchase agreement for the looms, with a consideration fixed at Rs. 1,20,000/- to be paid in monthly installments of Rs. 2500/- with 18% interest on unpaid amounts. The agreement stipulated that the plaintiff could terminate the agreement and reclaim the looms if there was a default in payment for three installments. The plaintiff claimed that the 1st defendant breached the agreement by not making any payments, including an initial cheque that bounced, thus entitling the plaintiff to reclaim the looms and seek damages. 3. Jurisdiction of City Civil Court The defendants contended that the City Civil Court lacked jurisdiction to entertain the suit and that the suit was not maintainable due to insufficient court fees. They argued that the suit was essentially for possession of the looms, valued at Rs. 1,20,000/-, which exceeded the pecuniary jurisdiction of the City Civil Court. The trial judge, however, decided to address the jurisdiction issue along with the notice of motion for interim relief, ultimately ruling in favor of the plaintiff. 4. Maintainability of the Suit and Court Fees The defendants argued that the suit was framed to avoid higher court fees and that the actual claim exceeded the City Civil Court's pecuniary jurisdiction. They contended that the suit was essentially for recovery of possession and damages, which should have been valued higher. The trial judge did not find merit in this argument and held that the court fees paid were sufficient. 5. Interim Relief and Appointment of Receiver The plaintiff sought interim relief, including an injunction to prevent the defendants from interfering with the looms and the appointment of a Receiver. The trial judge granted the notice of motion, appointing a Court Receiver and giving the 1st defendant an option to deposit certain amounts to avoid the Receiver taking possession of the looms. The defendants challenged this order, arguing that they were not given a fair opportunity to present their case and that the order was unjust. 6. Determination of Preliminary Issue of Jurisdiction The trial judge bundled the jurisdiction issue with the notice of motion for interim relief, deciding both in favor of the plaintiff. The defendants argued that the trial judge failed to adequately address the jurisdiction issue and did not provide a detailed discussion or fair opportunity to the defendants. The appellate court found merit in the defendants' contention and emphasized that the trial court should have determined the jurisdiction issue as a preliminary issue before addressing the interim relief. Conclusion: The appellate court set aside the trial court's order and remanded the matter for fresh hearing on the preliminary issue of jurisdiction and the merits of the notice of motion. The court directed that the trial judge should provide a detailed discussion and fair opportunity to both parties, considering all relevant materials and evidence. The interim relief conditions were modified, requiring the 1st defendant to furnish a solvent security of Rs. 35,000/- and maintain an undertaking not to deal with the looms until the final disposal of the jurisdiction issue and the notice of motion.
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