SOBHANA Vs. CATHOLIC SYRIAN BANK LTD.

JUDGEMENT

(1.) In execution of the decree, the first respondent - bank has obtained against the petitioner, the share of the petitioner in the property belonging to a partnership of which she is a partner, has been attached. It is further seen from the order that the Court below has also directed sale of the said property.

(2.) It is the common case of the parties that the decree is against the petitioner in her individual capacity. The petitioner therefore contended before the Court below that the properties of the firm of which she is a partner cannot be attached and sold in execution of such a decree. Overruling this objection the Court below has directed the sale of the share of the petitioner in the partnership property. The question therefore is, can the decree-holder attach the share of the petitioner in the partnership property and sell the same in execution of the money decree obtained against the petitioner in her individual capacity.

(3.) It is a principle well established that during the subsistence of the partnership, the right of a partner is only to get his share of profit if any, accruing to the partnership from the realisation of the property and upon dissolution of the partnership to a share in the value of the assets of the firm which remain after satisfying the liabilities set out in clause (a) and sub-clauses (i), (ii) and (iii) of clause (b) of Sec. 48 of The Partnership Act. During the subsistence of the partnership, no partner can deal with the property of the partnership as his own. During the subsistence of the partnership, a partner however, can assign his share to another and in that case what the assignee would get would be only that which is permitted by Sec. 29 (1) of The Partnership Act, that is to say, the right to receive the share of profits assigned and accept the account of profits agreed to by the partners. (See Narayanappa Vs. Bhaskara Krishnappa, AIR 1966 Supreme Court 1300)