Gujarat Court April 1968 Judgments

Bharat Sarvodaya Mills Co. Ltd. Vs. Mohatta Brothers Overruled

Court: Gujarat

Reported in: AIR1969Guj178; (1969)GLR457

Mehta, J. 1. These two cross appeals raise an interesting question as to the interpretation of the two mandatory conditions laid down in Section 69(2) of the Indian Partnership Act, 1932, hereinafter referred to as 'the Act,' in the context of a reconstituted firm by addition of a new partner and when the cause of action had accrued after such reconstitution. First Appeal No. 769/1960 is filed by the original defendant company while First Appeal No. 1029/60 is filed by the original plaintiff-firm. 2. The short facts which have given rise to these two appeals are as under:-- The plaintiff-firm is a partnership firm having firm's name Messrs. Mohatta Brothers which carried on the business of managing agency of the defendant-company, namely Bharat Survodaya Mills Company limited, hereinafter referred to as the 'company'. The plaintiff-firm carried on the said business of the managing agency upto 4th September 1950. Shri Chaturbhujdas had given a scheme of management. Ex. 168, on behalf of...