NARAYANAN NAMBIAR Vs. AMBU

JUDGEMENT

(1.) This is an appeal by the plaintiff in a suit for dissolution of partnership and for accounts. The Trial Court decreed the suit, while the lower appellants court dismissed it, on the ground that the partnership agreement was illegal.

(2.) The plaintiff was carrying on a wholesale business in handloom cloth, after taking out a licence as required by Clause.4 of the Madras Cloth Dealers' Control Order, 1944. The plaintiff formed a partnership with defendants 1 to 3 and one Mukundan for the purpose of carrying on this business; and the partnership carried on the said business with effect from 4-4-1946. On 13-5-1946 they executed an agreement, Ext. A152, incorporating the terms and conditions of the partnership. The main clauses of Ext. A152 are the following:

(3.) The suit was contested by defendants 1 to 3 on several grounds. The lower courts concurrently found