The
parties entered into a partnership business at Barnala under the name M/s.
Mehar Chand Bachan Lal and a regular partnership deed was executed between them
on 30-3-1954. The business was carried on by them in equal shares in the assets
and it was a partnership at will and any party could retire from it on giving
one month's notice in writing and on the retirement of any of the parties, the
partnership would be deemed to have dissolved. Both the parties were liable in
respect of the liabilities and entitled to the assets of the partnership in
accordance with their shares. It is the common case of the parties that firm
worked up to 18-7-1971 and after that it did not do any business. The firm was
maintaining regular books of accounts and it was alleged that the defendant was
in possession of the same. Since the partnership was at will and it was not
carrying on any business, the plaintiff deemed it proper not to continue the
partnership and served a notice dated 7-4-1974 under registered A. D. cover on
the defendant for dissolution of the firm, informing that he did not want to
continue the said firm and that he be deemed to be not partner w.e.f. 10-7-1974
and firm be treated as dissolved from that date. He further requested the
defendant to settle all the accounts of the firm and whatever amount is found
due to him after rendition of accounts, he is entitled to interest thereon at
the rate of 12% per annum. This suit for rendition of accounts was filed on
23rd August, 1974.
The judgment and decree passed by the
learned single Judge are set aside and that of the trial Court dismissing the
suit of the plaintiff are restored with costs. This appeal succeeds.