S.S. KRISHNA RAO, S/O. SUBBA RAO, SWARGA MADAM, SAMOOHAM ROAD, KOZHIKODE Vs. SUSHEELA KRISHNA PAI, W/O. LATE KRISHNA PAI, HOUSE NO. 18/431, SAMOOHAM ROAD, KASABA AMSOM, KOZHIKODE

JUDGEMENT

(1.) Heard the learned counsel for the appellants and the learned counsel for the respondents.

(2.) The defendants in a suit for realization of money are the appellants. The suit was decreed. First appeal by the defendants was dismissed. Hence, this appeal is filed against the judgment in the first appeal.

(3.) The substance of the plaint claim is based on a p icular claim as to the goodwill of a partnership firm of which Ext.B1 is the deed of partnership. The partners thereunder are the appealing defendants and late Krishna Pai, the predecessor-in-interest of the plaintiffs. The business of the firm was being carried on under Ext.B1 deed dated 27.12.1974. Krishna Pai died on 03.05.1982. The surviving partners carried on the business under a reconstituted partnership deed dated 04.05.1982. The rights of late Krishna Pai devolved on the plaintiffs. Resultantly, on 02.06.1982, Ext.A1 was entered into between the defendants who are the partners of the reconstituted firm and the plaintiffs who are the legal representatives of late Krishna Pai. Thereafter, the Assistant Controller of Estate Duty issued order dated 04.01.1984 assessing the estate duty due on account of the estate of deceased Krishna Pai. In doing so, the assessing authority for estate duty included a component towards the share of goodwill of the firm, and the share of deceased Krishna Pai was fixed at Rs.70,221.00. The suit was thereafter filed by the legal representatives of Krishna Pai claiming that they are entitled to the said amount of Rs.70,221.00 as share of goodwill, as a consequence of parting with the rights of Ext.B1 partnership firm. This is the plaint claim.