JIVARAJBHAI UJAMSHI SHETH Vs. CHINTAPANRAO BALAJI

JUDGEMENT

(1.) THE following were delivered by Judgments of the court

(2.) VRAJLAL Manilal and Company, a firm consisting originally of four partners (1) Manilal Anandji, (2) Jivrajbhai Ujamshi Sheth, (3) Punjabhai S. Patel, and (4) Chintamanrao, has been doing business of manufacturing bidis at Sagar and Delhi since 1944. From time to time fresh partnership deeds were executed readjusting the shares of the partners admitting new partners and adjusting the shares of the partners. In 1954 Manilal Anandji retired from the firm and on 27/01/1955, Punjabhai S. Patel died.

(3.) THE deed of reference was subsequently modified, and the parties agreed that the reference be ' carried out by the sole arbitrator Shri Jasani'. Pursuant to this modified agreement, Jasani entered upon the reference, and made his award on 9/01/1959. By his award he fixed the value of the goodwill of the entire firm at Rs. 32 lakhs including in that amount the 'depreciation and appreciation of the property, dead-stock and dues to be recovered'. He also fixed the profits for the broken period of Samvat year 2014 from the commencement of the year till 19/04/1958 at Rs. 2,80,000.00 and after adjusting the personal accounts of the three retiring partners awarded to Jivraj Rs. 3,46,223.58 nP. to Amritlal son of Jivraj Rs. 4,04,519.99 nP. and to Bhagwandas son of Jivraj Rs. 3,86,019.14 nP, and directed that the ownership over the assets of the firm i.e. property-moveable and immoveable,-Trade mark, labels, stock-in-trade, long-term leases and contracts etc. shall remain with the remaining partners, subject to the liabilities of the firm, the retiring partners not being responsible for the liabilities of the firm, nor having any interest in the firm or its business. This award was filed in the court of the Additional District Judge, Sagar, under s. 14(2) of the Indian ARBITRATION AND CONCILIATION ACT, 1940.