P.M. DAVIS Vs. V.I. KURUVILLA

JUDGEMENT

(1.) The challenge in the appeal by defendants 2 to 6 (sic) regard to the final decree passed in O.S. No. 120 of 1991, which was a suit for (sic) solution of partnership firm and for settlement of accounts. The St. Syriac Tile Works was owned by a firm consisting of four partners, who were all children born to one and the same parents. Of the partners, plaintiff and defendants 1 and 2 were alive and defendants 3 onwards are the children of the deceased partner by name Baby. Preliminary decree dissolving the firm w.e.f. 31-01-1991 which was the date of suit was passed on 08-02-1995 and a Receiver was appointed to take stock of the assets and liabilities of the erstwhile firm. Based on the report so filed, final decree was passed on 16-01-1998. In the meantime, there was an application filed for appointment of a Receiver for running the factory and the order passed by this Court in C.M.A. No. 8 of 1992 was taken up before the Apex Court, which made an additional provision as follows while disposing of SLP No. 6827 of 1992 on 06-11-1992.

(2.) Yet another submission is that the judgment under appeal has failed to take into account the liability incurred on various heads which were not actually included in the accounts filed by the Advocate Receiver. In this regard it is pointed out that there was arrears of income tax payable for the period from 1989-90 as also arrears of sales tax due from 1995-96. There (sic) also liability towards gratuity, E.S.I. contribution etc. in respect of the employees of the factory. It is argued that these liabilities should be fastened on the group of plaintiff and first defendant, to whom the factory as such is allotted under the decree.

(3.) The appellants also contend that out of the amounts deposited by the second defendant pursuant to the order of the Apex Court, some amounts have already been paid to the Santhi Kuries (P) Ltd. Trichur, who is a creditor, as also to the Sale Tax department towards sales tax for the year 1993-94. Yet another submission is that provision has to be made for payment of dues to the creditors of the factory as revealed by the balance sheet for the period ending 31-12-1997, viz. Rs. 8,74,425.90.