BHARATHI MURTHY N Vs. B V KRISHNASWAMY

JUDGEMENT

(1.) Writ Appeal No.3306/2002 is directed against the interim order passed by the learned Single Judge on 7.5.2002 in W.P.No.20138 of 2002. Writ Appeal No.5843 of 2003 is against the order dated 25.7.2003.

(2.) Both these appeals heard together.

(3.) The case of the appellants is that, four persons namely, S.Ramaiah, Chand Pasha, B.V.Krishnaswamy and B.N.Gopala Gowda, formed a partnership on 11.6.1970 contributing Rs. 12,000/- each, The said firm purchased the land bearing Sy.No.331 measuring I acre I gunta situated at Deyanahalli Kasaba, under a registered sale deed dated 24.9.1970 from one N.Narayanaswamappa for establishing cinema theatre. These partners had borrowed money from several sources including Canara Bank, Deyanahalli Branch, for obtaining no objection certificate and also for establishment of a Cinema theatre in the name and style as 'Sri Venkateshwara Theatre'. They had borrowed a sum of Rs. 5,75,368.75 paise from Canara Bank and they did not repay the said amount. The Canara Bank had filed a suit in O.S.No.871/1982 and the said suit came to be decreed against the partners. Since the partners were unable to repay the decretal amount, they entered into an agreement of sale dated 20th January 1992 with deceased N.Narayana Reddy, interalia agreeing to sell the property for a sum of Rs. 21 lakhs, which is inclusive of all the liabilities of the partners (sellers). By cheque bearing No.543623 drawn on Corporation Bank, Malleswaram Branch dated 11.12.1991, the said Narayana Reddy had paid Rs. 50,000/- and same is also mentioned in the agreement. Thereafter, by cheque No.543634 drawn on Corporation Bank, Malleswaram Branch dated 17.1.1992 another sum of Rs. 3,50,000/- was paid. In all Rs. 4,00,000/- was paid as on the date of the agreement. On 15.7.1994, the said partnership firm was re-constituted along with N.Narayana Reddy and his wife Smt. Bharathi Murthy. Narayana Reddy was made as working partner. On 11.1.1995, the deed of retirement was executed w.e.f. 31.12.1994, wherein earlier four partners namely, S.Ramaiah, Syed Abdul Wahab, B.V.Krishnaswamy and B.N.Gopala Gowda retired and a partnership consisting of N.Narayana Reddy and his wife Smt. Bharathi Murthy was constituted.