Contract Law

Bhogilal Laherchand v Commissioner of Income Tax, Bombay AIR 1956 Bom 411 (minor, accounts when to calculate?) Facts The assessee (Bhogilal, B) who had started a partnership firm admitted his minor son A to the benefits of the partnership. The minor attained majority on August 22, 1950, and he elected to remain a partner of…

Addanki Narayanappa & Anr. v. Bhaskara Krishtappa & Ors. 1966 SCR (3) 400 (movable-immovable property) Facts The members of two Joint Hindu families (Appellants and Respondents) entered into partnership for carrying on business. The members of one family filed a suit in 1949 for dissolution of the partnership and the taking of accounts. The members…

Karumuthu Thiagarajan Chettiar and Anr. v. E.M. Muthappa Chettiar 1961 SCR (3) 998 [partnership at will, section 7] Facts Muthappa Chettiar (MC)[1] and K. Thiagarajan Chettiar (TC)[2] entered into a written partnership agreement for the managing agency business of the two mills (Rajendra & Saroja) wherein they fixed turns to manage the mills and the…

Champaran Cane Concern v State of Bihar and Anr. 1964 SCR (2) 921 (co-ownership vis-a-vis partnership ) Facts The appellants, living in far off place of U.P appointed a common manager for facility of cultivation and management of land in Champaran (Bihar).The concern was assessed as a partnership firm for all the three years, though…

Birdichand Sukhraj Marwadi v. Harakchand Jagraj Marwadi Facts The plaintiff purchased cartloads of cotton from a third party and the defendant held half the share in the profit or the loss arising out of the said transaction. Since the price began to fall, the defendant told the plaintiff’s to sell it. The plaintiff did so…

Shivagouda Ravji Patil v. Chandrakant Neelkanth Sedalge 1964 SCR (8) 233 [minor turns major, Section 30(5) ] Facts A partnership firm was being run wherein one of the partners was a minor (respondent 1) and was admitted to the benefits of the partnership. The partnership was dissolved and subsequently the minor partner became a major. However, he…

Commissioner of Income Tax, Madhya Pradesh v. Dewas Cine Corporation 1968 SCR (2) 173 [distribution of assets-sale or not?, section 46] Facts A partnership firm dealing with cinematographic films got dissolved. Individual Cinematograph theatres were treated as the assets of the partnership. Partners of the firm handed over this asset along with its depreciation cost…

Syndicate Bank v. R.S.R. Engineering Works and Ors. 2003 (4) ALD 62 SC [retiring partners, Section 32(2)] Facts Respondent  No. 1: Partnership firm engaged in engineering works, Respondent Nos. 2 to 4: its partners The respondents took a loan from the bank. They defaulted. Respondent Nos. 2 and 3 contended that the first respondent firm was dissolved…

Mohd. Hafeez Khan v. State Transport Appellate Tribunal AIR 1978 MP 116 (liability of a partner for bad reputation) Facts The scope for the grant of a carriage permit along a certain fixed route was declared. Earlier to this, the permit was granted to Motor Transport Worker (MT), but was cancelled due to non-operation. In…

Sk Kabir v. Narayandas Lachman Das Ltd. AIR 1955 Ori 24 (Implied Agreement, Partnership by status) Facts The defendants entered into two contracts with the plaintiff firm, which was unregistered, regarding the supply of mustard oil. The defendants, (when the plaintiffs had fulfilled their end of the contract) failed to supply the oil on the…

Deputy Commissioner of Sales Tax vs. K Kelukutty 1985 SCR Supl. (1) 135 (separate agreement for separate business)   Facts The respondent is a partnership firm dealing in timber. When the firm’s Sales Tax Officer was assessing the firm’s turnover, he discovered that the partners of the firm owned a saw mill, and the partners…