9911796707
TMI Blog2025 (3) TMI 392X X X X Extracts X X X X X X X X Extracts X X X X ..... was later reduced into writing vide Partnership Deed dated 11.10.1972 and thus the partnership firm, M/s Hotel Alka Raje i.e. respondent No. 1 herein was constituted. The two brothers jointly constructed a building on the land and started running a hotel business under the name and style of 'Hotel Alka Raje'. 4. In 1982, two new partners, which are respondent Nos. 2 and 3 herein, were inducted in the firm vide Partnership Deed dated 07.06.1982. In 1983, late Bhairo Prasad Jaiswal wished to relinquish his rights from the land on which the hotel was constructed and thus, he executed a relinquishment deed dated 09.03.1983 duly registered, pursuant to which the property was released in favour of M/s Hotel Alka Raje (respondent No. 1 herein). This Relinquishment Deed further stipulated that his legal heirs or successors will have no right, title or interest in the property. 5. Although he had relinquished his right and title from the property on which the hotel was constructed, late Bhairo Prasad Jaiswal still continued to run the hotel business along with the other three partners but due to old age, he was unable to devote much of his time to the business and thus, a Partnership Deed ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... late Bhairo Prasad Jaiswal and the Trial Court was of the opinion that the said Relinquishment Deed, being a registered document has its veracity and there it is clearly mentioned in the same that late Bhairo Prasad Jaiswal had relinquished all his rights, title & interest in the property in favour of the firm M/s Hotel Alka Raje, which is respondent No. 1 herein. Further, it was also mentioned in the deed that even the successors/heirs of late Bhairo Prasad Jaiswal would not have any share in the property. 9. Against the judgment and decree of the Trial Court, First Appeal was filed by the appellant herein along with other defendants to the suit. Vide Impugned Order dated 09.03.2022 the High Court disposed of the First Appeal with the following clarification with respect to the decree passed by the Trial Court: "We, therefore, clarify the position to the effect that the decree rendered by the trial court shall be read in favour of the firm namely 'M/s Hotel Alka Raje' alone. We also clarify that the share of the partners particularly of late Bhairon Prasad Jaiswal shall stand inherited by his legal heirs to the extent mentioned in the last partnership deed entered in a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... oodwill of the business. Unless the contrary intention appears, property and rights and interests in property acquired with money belonging to the firm are deemed to have been acquired for the firm." The High Court has held that a bare perusal of Section 14 of Partnership Act would indicate that any property which is brought on the stock of the firm becomes the firm's perpetual property. In the opinion of the High Court, the Hotel which was constructed by late Bhairo Prasad Jaiswal on the property which he had bought in 1965, was his contribution to the firm and thus, the same was brought on to the stock of the firm and would become the 'property of the firm' as per Section 14 of the Partnership Act. In this regard, this is what the High Court has observed: "The dispute before the trial. court does not appear to be with respect of the proportionate share of partners but for a declaration of the property of 'Hotel Alka Raje' to be the property of firm. The suit was instituted by the firm as plaintiff no. 1 whereas respondent nos. 2 to 4 were the co-plaintiffs. It is not in dispute that 'Hotel Alka Raje' which was constructed upon two plots out of which one bel ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hip assets as on the date of dissolution or retirement after a deduction of liabilities and prior charges." (emphasis supplied) 14. A similar view has been taken by the Full Bench of the Madras High Court in The Chief Controlling Revenue Authority vs. Chidambaram, Partner, Thachanallur Sugar Mills and Distilleries and Ors. AIR 1970 Mad 5 (FB), wherein it was held that Section 14 of the Partnership Act enables a partner to bring a property which belongs to him, by the 'evidence of his intention' to make it a property of the firm and in order to do so, no formal document or agreement would be necessary. The Full Bench has thus held as follows: "First of all, as we earlier observed, under S. 14 of the Partnership Act, it is always possible for a partner to bring into the partnership, property belonging to him by the evidence of his intention to make it part of the assets of the partnership. There is a very early decision of the English Court, namely, Robinson v. Ashton which embodies this principle, where a man became a member of a partnership, and the agreement was that the business should be conducted at the mill belonging to him, and he was credited in the books of the part ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
