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TMI Blog1969 (1) TMI 74X X X X Extracts X X X X X X X X Extracts X X X X ..... s and machinery relating thereto, for ₹ 3,30,000. An instrument was executed on 6-6-1962 as between the ten parties who are respondents, including this Chidambaram chettiar, styled a partnership deed, under Clause (8) of which the aforesaid sugar mills, distilleries, rice mill and accretions, dealt with by the decree in A. S. 223 of 1959, were declared as properties of the partnership firm, including Chidambaram chettiar as a member thereof. The partnership was created under this document clause (4) purporting to set forth the respective shares or interests of partners, and Clause (21) et seq admittedly providing for dissolution, for accounting etc. The chief Revenue Authority has raised the point that this document is liable to be ch ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... firm of himself and the other nine persons, retaining for himself the value or interest of five shares as set forth in Clause (4 ). ( 3. ) The learned Additional Government Pleader contends that, even where such document has expressly created a partnership, and even though the partnership firm is acquiring partnership assets, thereunder including the vendor as one of the partners, the document is liable to duty as a conveyance, on the principle of the decision of the Full Bench in Sahaya Nidhi (Virudhunagar) Ltd. v. Subramania nadar (FB ). Delivering the judgment on behalf of the Bench viswanatha Sastri, J. , observed (at page 219 of Mad LJ) = (at pp. 211 and 212 of air) that the question was not whether the relevant arrangement could n ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the Mills. Jessel M. R. said that it made no difference that his contribution was in the form of mill and machinery, and not in the form of money. The property, therefore, became the property of the partnership. On the same principle of Section 14, we have the decision of the Full Bench of the Calcutta High court in Premraj Brahmin v. Bhaniram Brahmin, ILR 1946-1 Cal 191 and the learned Judges pointed out that, by virtue of Section 14, property could be thrown into the partnership stock without any formal document, and would, therefore, become the property of the arm. ( 5. ) This aspect of the probabilities is strengthened in the present case, by the fact that there was a preceding agreement, under which it is clear that the very funds ..... X X X X Extracts X X X X X X X X Extracts X X X X
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