Sri Kishan Gupta vs Ram Babu Gupta 1990

     The parties are real brothers and they along with their father Pyare Lal used to carry on partnership business along with. Rajendra Kumar under a Deed of Partnership dated 31st April, 1964. The business that they carried on was under the name, and style of M/s Indian Industries and Steel Company This business, continued upto 15th of October, 1973 when Rajendra Kumar, retired from, the firm and the remaining three partners, reconstituted themselves into a partnership firm on 16th October, 1973, each having 1/3rd share in the profits and losses. The father Pyare Lal died on 25th February, 1977, and subsequently there was again reconstitution of the partnership on 1st April, 1977. This time two partnership deeds were executed between the parties, each having half share in two partnership businesses, one in the name of Indian Industries and Steel Company and the other was Cloth business in the name of M/s. Raghunath Prasad Pyare Lal.

     From 1st April, 1982 both the partnerships were dissolved and there was a partition amongst the brothers as a result whereof the plaintiff-respondent was allotted cloth business and he entered into a fresh Deed of Partnership with his son Ajay Kumar and ever since they alone are carrying on buisness. Similarly the Steel business was allotted to the defendant-appellant and he also entered into a fresh partnership with his two sons on the same date and ever since the Steel business is being carried on by them exclusively. The plaintiff filed the suit on the basis of partnership between the parties treating the firm to be continuing and seeking accounts from the defendant-appellant through arbitration. 

     In this judgment the order of the trial Court is set aside and the matter is sent down to the trial Court for framing an issue on the question that the partnership dated 1-4-1977 was still continuing and had not been dissolved as from 1-4-1982 where after a new partnership had come into being. In the circum-stances of the case, Court propose that the parties should bear the burden of costs themselves.