Decided on September 22,1954

Pisupati Rama Rao and Ors. Appellant
Tadepalli Papayya and Anr. Respondents


Subba Rao, C.J. - (1.) THE question in this Second Appeal is whether the suit partnership is illegal.
(2.) THE facts found by the Courts below may be stated. The Plaintiffs and Defendants formed a partnership in the name and style of Tadepalli Papayya & Co. for running rice ration shop business from 3 -9 -1944 at Bezwada. The said business was conducted on the basis of a ration shop licence issued in the name of the 1st Defendant. The suit was filed for a declaration that the firm, Tadepalli Papayya & Co., had been dissolved on 1 -9 -1945, for settlement of accounts and for directing the 1st Defendant to pay such amount as may be found due to the Plaintiff. Both the Courts held that the alleged partnership was illegal and unenforceable and, on that finding dismissed the suit. The Plaintiff preferred the above Second Appeal. The only question in the Second Appeal is whether the said partnership is illegal. The answer to the question depends upon the provisions of the Defence of India Rules and that of the Madras Rationing order 1943. It will be convenient to read the relevant provisions at this stage: Rule 81(2): -The Central Government or the Provincial Government so far as appears to it to be necessary or expedient for securing the defence of British India or the efficient prosecution of the war or for maintaining supplies and services essential to the life of the community may by order provide (a) for regulating or prohibiting production, treatment, keeping, storage, movement, transport, distribution, disposal, acquisition, use or consumption of articles or things of any description whatsoever and in particular for prohibiting the withholding from sale, either generally or to specified persons or classes of persons, of articles or things kept for sale and for requiring articles or things kept for sale to be sold either generally or to specified persons or classes of persons or in specified circumstances; (b) for controlling the prices or rates at which articles or things of any description whatsoever may be sold or hired and for relaxing any maximum or minimum limits otherwise imposed on such prices or rates. Rule 81(4) : - If any person contravenes any order made under this rule, he shall be punishable with imprisonment for a term which may extend to three years or with fine or with both.
(3.) UNDER Section 2(9) of the Madras Rationing Order of 1943, a "rationing document" includes a rationing book, a ration card or any part of any ration book or ration card or any coupon or any declaration, authority, permit or other document issued or made by or under the provisions of this Order. Section 13: - "A ration document shall not be issued for obtaining any rationed article, except by or on behalf of the person to whom such document was issued. Section 16: - "No person shall transfer, to any other person a ration document issued to himself.;

Click here to view full judgement.
Copyright © Regent Computronics Pvt.Ltd.