S S NAVALGI Vs. COMMERCIAL TAX OFFICER JAMKHANDI

JUDGEMENT

(1.) The petitioner in these writ petitions is common. He was a partner of a firm Messrs. S.B.Navalgi which was an assessee under the Mysore Sales Tax Act, 1957 (hereinafter termed as the 'Act') . That partnership was constituted under a deed dt.16th November 1960, in which there was no provision made either for the duration or for the determination of the partnership, and, that was therefore, a "partnership at will". On 28-7-1961, one of the partners, S.B.Navalgi passed away. There was no contract express or implied to continue the partnership after the death of a partner. So, the firm stood dissolved under S.42(c) of the Partnership Act with effect from 29-7-1961.

(2.) For the year ending 31-3-1960, the respondent passed assessment order dt.30-11-1962, in the name of the dissolved firm. Like assessment orders were also passed on the same date for the years ending 31-3-1961 and 31-3-1962. The validity of these assessment orders were challenged by the petitioner in this Court in WP. Nos. 246 to 248 of 1966, on the ground that the respondent had no power to assess a dissolved firm. This Court, perhaps, for want of requisite evidence, while allowing those petitions, issued the following directions:

(3.) Pursuant to the directions of this Court, the petitioners produced before the respondent, the deed of partnership dt.16-2-1960 and another deed dt. 13-10-1961, by which the dissolved firm was reconstituted. There was admittedly no clause in the deed dt.16-2-1960 for the continuation of the firm despite the death of any partner. But the respondent, by misconstruing the clause about the duration of the partnership being at will, came to the conclusion that that clause would prevent the dissolution under S.42(c) the Partnership Act. Having erroneously arrived at the conclusion that the deed of partnership contained a clause preventing dissolution under S.42(c), the respondent purported to proceed in accor- dnce with the direction contained in para 4 of the directions issued by this Court and passed fresh orders of assessment dt.23-1-1969 in the name of the firm for the periods above mentioned which are challenged in the above writ petitions.