KOVAI YARN TRADERS Vs. P. SUBRAMANIAM
SUPREME COURT OF INDIA
Kovai Yarn Traders
Click here to view full judgement.
(1.)One A.P. Palaniappan and N.C.C.A. Palanisamy were the partners of a registered partnership firm known as M/s. Annapoorna Textiles. It was constituted on 7th June, 1976. It is alleged that on 16th February, 1977, A.P. Palaniappan retired from the said registered partnership firm, relinquishing all his rights in M/s. Annapoorna Textiles. It is further alleged that from 17th February, 1977 the dissolved firm was run by a proprietary concern comprising of the left out partner and his heirs. On 1st April, 1978 N.C.C.A. Palanisamy constituted a new partnership firm with his sons and the said partnership firm was registered under the Indian Partnership Act, 1932 .
(2.)It is not disputed that the plaintiff-appellant herein had several business transactions with the newly constituted firm during the period i.e. 29th July, 1978 to 31st August, 1979. It is also not disputed that the plaintiff-appellant was not paid the price of materials supplied to the firm. It appears that under such circumstances the plaintiff-appellant filed a suit for recovery of money amount against M/s. Annapoorna Textiles as well as A.P. Palaniappan and N.C.C.A. Palanisamy.
(3.)The trial court was of the view that assuming A.P. Palaniappan had retired in the year 1977 from the partnership firm, since no notice under Section 72 of the Indian Partnership Act, 1932 was given by him, his retirement was invalid and the original partnership would not dissolve and, therefore, A.P. Palaniappan, jointly and severely, was bound for the liability of the firm. Consequently, the suit was decreed.
Copyright © Regent Computronics Pvt.Ltd.