Partnership at will Suit filed by some partners for dissolution of partnership with effect from use of filing of suit - Service of suit summons constitutes service of notice of dissolution and date of communication is date of service of summons Service of summons of plaint constitutes compliance of section 43 -

Citation 

1998 (1) CTC 694 (Mad)

1998 (2) MLJ 435

IN THE HIGH COURT OF MADRAS

S.M. Abdul Wahab, J. C.R.P.Nos. 3265 to 3267 of 1996. February 19, 1998

A. Nagappan and 8 Others...Petitioner

Vs. 

M/s. Mc. Adams Chemicals Manufacturing Co., Represented by Its Managing Partner R. Balagangadharan and 5 Others...Respondent

Partnership Act, 1932, Section 43 Dissolution of partnership at will Suit filed by some partners for dissolution of partnership with effect from use of filing of suit - No notice of dissolutions sent to other partners prior to filing of suit Suit summons served of defendants Service of suit summons constitutes service of notice of dissolution and date of communication is date of service of summons Service of summons of plaint constitutes compliance of section 43. [Paras 14, 24 and 29]

 

Constitution of India, Artide 141-Law declared by Supreme Court Decisions rendered by Supreme Court on question which arose for consideration is deemed to be law dedared by Supreme Court - Supreme Court answering questions regarding expression 'notice' occurring in section 43 Partnership Act - Decisions of Supreme Court on this issue not mere 'Obiter' but law declared by Supreme Court. [Paras 22 and 24]

 

Partnership Act, 1932. Sections 43 and 44 Dissolution of partnership at will and dissolutions of other partnership under section 44 by Court Difference between Section 43 applicable if partnership is at will In suit for dissolution of partnership at will Court has to see if notice of dissolutions has been sent or not If no notice is sent Court has to take date of dissolutions as shown in plaint If no date is mentioned date has to be decided by court Section 44 deals with dissolution of partnership not one at will - Court can direct dissolution on being satisfied that grounds mentioned in sections 44 exist In suit for dissolution of partnership at will court need not search for grounds as in case of sections 44. [Paras 34 and 35]

 

Code of Civil Procedure, 1908, Order 20, Rule 15 If Court directs dissolution of partnership and determines date of dissolution until such date partnership must be presumed to continue Order 20 Rule 15 can be invoked only after courts decides dissolution In case of partnership at will Order 20 Rule 15 is applicable for purpose of declaring shares and deemed date of dissolution. (Paras 21 and 35]