46,000.00 as short term loans which Khanna had promised to but had failed to repay.
Appeal by special leave from the judgment and order dated October 26, 1962, of the Punjab High Court at Delhi in Civil Revision Nos.
525 and 526 D of 1960.
CIVIL APPELLATE JURISDICTION Civil Appeal No.
320 of 1963.
On January 12, 1957, the parties arrived at a companypromise which was incorporated into a decree of the Court companyfirming the earlier dissolution of the partnership, subject to a scheme of winding up, under which all outstanding realised from the debtors of the firm and the sale proceeds of certain assets were to go into a banking account to be opened in the joint names of Dillon and Khanna and were to be applied in the first instance to meet the liabilities of the dissolved firm, and the balance in that joint account was to belong to Dillon.
out of joint funds belonging to the two partners, action for recovery of those amounts was, in law number maintainable.
V. Viswanatha Sastri, Bakshi Shiv Charan Singh and S.N. Anand, for the respondent in both the appeals .
C. Chatterjee, M.K. Ramamurthy, R.K. Garg, S.C. Agarwal and D.P. Singh, for the appellant in both the appeals .
But the deed did number terminate the disputes between the partners, and Khanna companymenced an action against Dillon in the Court of the Subordinate judge, 1st Class, Delhi for dissolution of the partnership and rendition of accounts.
Dillon filed a suit in the Court of the Subordinate judge at Delhi for a decree for Rs.
Out of the issues raised by the Trial Court in the suit the third,issue viz Whether this suit is number maintainable and the plaintiff is number entitled to institute this suit, as alleged in paras Nos.
Some outstanding of the dissolved partnership were companylected by Dillon and were deposited in the joint account of Dillon and Khanna.
They agreed to dissolve the partnership with effect from February 15, 1956.
With special leave this appeal is preferred by Khanna.
August 14, 1963.
SHAH, J. Brig.
The judgment of A.K. Sarkar and J.C. Shah, JJ.,
By the deed of dissolution it was agreed that Dillon was to take over all the assets and properties of the partnership as absolute owner and to pay all the debts and to discharge all the liabilities of the partnership and to keep Khanna indemnified against all demands and claims in relation to the partnership business.
F.J. Dillon and Major S.S. Khanna hereinafter called Dillon and Khanna respectively carried on business in partnership as Construction Engineers.
was delivered by Shah, J. M. Hidayatullah, J.delivered a separate Opinion.
Khanna pleaded that he did number borrow any loans from Dillon, and that the amounts claimed in the action being advanced, even on the pled of Dillon.
