L ISHWAR DASS Vs. HARYANA WOOLLEN AND GENERAL MILLS LIMITED

JUDGEMENT

(1.) THIS appeal by certificate from a judgment and order of the Punjab and Haryana High Court raises a very simple point which has unfortunately been laid over with a thick cloud of confusion caused by the long and cheque red history of the litigation. The facts and circumstances out of which this appeal arises may be set out in the beginning.

(2.) ON 1/12/1950 the appellants entered into a partnership agreement with the respondent for the purpose of carrying on the business of supply of blankets to the Army. The formal deed of partnership was executed on 6/03/1951. The partnership deed recites that the appellants (who were parties Nos. 2 and 3 to the deed) were weaving experts while the respondent (who was party No. 1 to the deed) used to do the work of spinning woollen yarn. It further recites that the three parties had formed a partnership for the purpose of supplying 5000 blankets to the Government of India in conformity with Specification No. I. N. 2689. The deed of partnership indicates the proportion of shares held by the three parties in the venture in the following manner: <FRM>JUDGEMENT_95_1_1974Html1.htm</FRM>

(3.) IT was contended that the contract for supply of blankets could not be executed on account of the negligence, carelessness and breach of the partnership agreement on the part of the defendant mill and the government department concerned had in consequence cancelled the contract by a letter dated 11-6-1951, Since the contract for which the partnership firm had been formed had been cancelled the plaintiffs wanted dissolution of the partnership and rendition of accounts. IT was claimed that if accounts were to be taken of the firm's transactions the defendant would be found liable to pay a sum of Rs. 40,000.00 to the plaintiffs.