JUDGEMENT
Rama Rao, J., -
(1.) All these three appeals are
against the common judgment in O.S.
Nbs. 37/74, 37/63 and 1/1971. The
plaintiffs are appellants in all the appeals.
(2.) O.S. 37/74: The essential averments in the plaint may be stated
One late Tunuguntla Venkatappayya had
four sons Nagaratnam Venkatakrishnayya
Subbarao and venkatarao (4th defendant).
They have been carrying on the business
under the name and style of Tunuguntla
Venkatappaiah and sons. After the
death of Venkatappaiah also the trade
was continued and carried on by the
members of the joint family under the
same name. On 3-12-1941 the partition
was effected between the main four
branches ot the joint family in respect of
certain assets and some immoveable
properties were allowed to be continued
to be joint and the lease income is shared
by four branches. The partition effected
on 3-12-1941 was reduced to writing by
a document dated 2-9-1953. In 1943
the 4th defendant ie., the father of the
plaintiffs and Venkata Krishnaiah started
another firm under the name and style of
M/s. T. Venkatarao and company and
Venkatarao was the partner in the said
firm along with the other partners. At
about the same time the 4th defendant
ie., the father of the plaintiffs and his
brother Venkata Krishnaiah and one
Vanama Venkataratnam a stranger to the
family and another person Gollapudi
Subbarao started a firm under the name
and style of T. Venkata Krishnaiah and
company, the 3rd defendant herein,
with effect from 1-1-1955; the 8th and
10th defendants were taken as partners
in both the firms, 2nd and 3rd defendants. It is stated that the plaintiffs, 4th
defendant and 10th defendant effected a
division of the assets of the family in the
firms defendants 2 and 3 and entered
into a memorandum of partition in February, 1955. The joint family members
become divided in status though some
properties were kept joint. By the Said
partition the defendants 4 and 10
intended to continue as partners in the
business and they are continuing as
partners in the said firm with varying
shares pursuant to the division and the
representation of the erstwhile joint
family of the firm came to an end. The
amount standing to the credit of the 4th
defendant as manager of the ersiwhile
joint family consisting of himself and his
sons has been divided between all the
members and as a consequence of the
same relevant debit and Credit entries
have been made in the accounts of the
firm of defendants 1,2 and 3 in the
name of the four members. Defendants
1 to 3 and partners there of ie., defendants 4 to 14 have been carrying on trade
intended to utilise the monies thus
became payable to the plaintiffs and
standing to their credit in their accounts
for the purpose of the trade on the
understanding to pay interest thereon at
12% p.a. By reason of the partition the
plaintiffs are entitled to 1/8th share in
the assets of the 1st defendant firm, The
plaintiffs came to know that the 8th
defendant filed a suit for dissolution of the
concerns and the settlement of accounts
and in the suit being O.S. 77/55 on the
file of Sub-Court, Guntur the plaintiffs
were not impleaded as parties. The plaintiffs got impleaded themselves in the suit.
As the rights of the plaintiffs cannot be
fully adjudicated in the said suit, the
plaintiffs are obliged to file the suit
for working out their rights and for
appropriate reliefs. As the sale
proceeds of the assets were realised by
the receiver in 0. S. 77/65 and the
amount is lying in the court the plaintiffs
are entitled to 1/8th share in the entire
amount repesenting the sale proceeds to
the credit of that suit. On the basis of the
said averments the plaintiffs sought for
relief of partition of the A schedule property into 16 shares and for separate
possession of such two shares to the plaintiffs
or in the alternative for payment of
1/8th share in the amount
realised therefrom and lying deposit in
O.S- 77/65 on the file of the Sub-court,
Guntur free from all claims of the defendants and the narration of other reliefs
sought for in the suit is not necessary as
they are not the subject matter of the
appeal.
2. The 8th defendant filed a
written statement stating that the suit
was filed at the instance of the 4th defendant and the other major son, the 10th
defendant with the collaboration of defendants 5 and 6 as a counter blast to O.S.
77/65 filed for dissolution of defendants
1 to 3 firms. The plaintiffs have already
come on record in O.S. 77/65 and urged
the very same claim in the suit and hence
this suit is misconceived. Subsequent to
the partition in 1941 between the four
brothers the 1st defendant firm alone was
doing business and continued to do so
till 1942 and the business was suspended later. This defendant has nothing
to do with the defendants 2 and 3 firms
at the inception and therefore they cannot be considered as a joint family
concerns in so far as defendant is concerned
and the circumstance that this is a joint
family enterprise as between the plaintiff
and defendants 4 and 10 cannot be a
consideration for treating the firm as a
joint family concern including this defendant. In the regular partitiondeed executed
in 1953 there was no mention of the
defendants having any interest in defendants 2 and 3 concerns. It is only in
1955 that this defendant was admitted as
partner for the first time in defendants 2
and 3 firms. Subsequently defendants
4,5,6 and 7 committed several acts of
omissions and commissions and therefore
this defendant was obliged to file the
suit 0. S. 77/65 for dissolution and
rendition of accounts. The aliegation of
division between the plaintiffs and defendants 4 and 10 is denied and that the
defendants 4 and 10 only intended to
continue as partners in the business is
false. The plaintiffs and defendants 4
and 10 are living together in the same
roof as members of Hindu joint family.
The 4th defendant, the managing partner
of defendants 1 and 2 firms and the 5th
defendant, the managing partner of the
3rd defendant firm colluded and manipulated accounts taking advantage of their
position. The 4th defendant's family
holds a share in the 1st defendant firm
and the plaintiffs and defendants 4 and
10 put together are entitled to 1/4th share
in the assets of that firm which was
converted into cash when the 4th defendant filed a petition to retain 1/8th share
of the realisations. It is further stated
that most of the creditors filed suits and
obtained decrees against all the properties
of defendants 2 and 3 firms and there is
no immoveable property to be divided and
the plaintiffs are not entitled to any portion of the amount lying in the court.
(3.) O.S. 37/69 : The plaintiff in
this suit is the 2nd plaintiff in O.S.37/74.
The same averments have been reiterated
with regard to their interest in the 1st
defendant firm and also their .right to
recovery the money from the defendants
2 and 3. It is stated that as per the
ledger of the 1st defendant as on 1-4-65
he has to get an amount of Rs. 933.10
and interest thereon and from the 2nd defendant firm Rs. 9, 145.60 as on 20-7-65
as per the entries in the ledger with
interest at 12% p.a. and he is also entitled
to get an amount of Rs. 30.652 70 from
the 3rd defendant firm as per the entries
in the accounts as on 1-1-1965 with
interest at 12% p.a. The 8th defendant
filed written statement reiterting the
averments made in the written statement
filed in O.S. 37/74. It is further stated
that the relief claimed in this suit is the
part of the claim in the suit O.S. 37/74
(O.S. 99/67 Sub-court, Guntur) which
is comprehensive, referring to this claim
also. The allegation with regard to the
division and also the claim for the amounts
as creditors are denied. Defendants 7,9,
11 to 14 filed written statement stating
the facts similar to that of the allegations
made in the written statement of the 8th
defendant.;
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