IN THE HIGH COURT OF KERALA
R.F.A. No. 355 of 2005 (Arising against the Order/Judgment in O. S. No. 311 of 1995)
Decided On: 27.01.2014
Hon'ble Judges/Coram:S.S. Satheesachandran, J.
Contract - Alienation of assets - Section 43 of Indian Partnership Act, 1932 - Present appeal filed against order, by which, Defendants/Appellants were restrained from alienating or encumbering assets of firm and were directed to pay cost to Respondents - Whether impugned decree was not passed in consonance with Rules and was thus, vague - Held, Section 43 of Act states that partnership at Will is dissolved by partner giving notice, in writing, to all other partners, of his intention to dissolve firm - However, even if suit for dissolution of firm was filed without giving notice, decree can still be passed declaring that partnership would stand dissolved from date of decree - Therefore, where Court below had passed preliminary decree fixing date of dissolution of firm from date of decree, no grievance could be raised by Defendant on ground of want of notice under Section 43 of Act - Liability to render accounts of firm by Defendants irrespective of alienations still continued and decree was provided thereof - Prohibitory order passed by Court under preliminary decree stands vacated - Preliminary decree dissolving firm directing for taking its accounts was upheld subject to modifications that partners of firm shall be entitled to share in proportionate ratio as fixed for sharing profit and loss of accounts - Appeal disposed of. [paras 10 and 11]
Citation: AIR2014Ker90, 2014 (1) KHC 550, 2014(1)KLT820
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