MOHANASUNDARAM Vs. NEELAMBAL

JUDGEMENT

(1.) This is an appeal by the plaintiffs from the judgment of Mack J. and is directed against the terms of a preliminary decree for the taking of the accounts of a dissolved partnership.

(2.) The facts of the case ate not in controversy and may be briefly stated. On or about 31-7-1945 one G. K. Narasimha Mudaliar entered into a partnership with the defendant P. Arunachalam Chettiar (who died pending the suit and is now represented by his widow and sons who are the respondents before us) for the purpose of carrying on a business in hides and skins under the name and style of "K. N. Arunachalam Chetti and Co." Each of the partners contributed a capital of Rs. 10,000 and while Narasimha Mudaliar was entitled to a one-third share in the profits and loss, Arunachala was to have the rest of the two-thirds. During the subsistence of the term of the partnership Narasimha Mudaliar died on 2-6-1947 leaving the plaintiffs as his representatives with the result that the partnership stood dissolved on that date.

(3.) The books of account of the partnership showed that they were made up to the end of March 1947 showing a credit of Rs. 10,198-12-8 to Narasimha Mudaliar the deceased and Rs. 13,413-13-0 to Arunachala the subsisting partner. There had been subsequent drawings both by Narasimha and Arunachala upto the dissolution of the partnership. Arunachalam withdrew some small sums even after the dissolution and on 30-6-1947 he drew a sum of Rs. 20,000 while the amount standing to his credit on that date was Rs. 13,800 odd. In other words he overdrew to the extent of about Rs. 6000. It might be mentioned that Arunachala paid a sum of Rs. 1000 to the representatives of Narasimha Mudaliar in July 1947 for the funeral expenses of the deceased, paid the income-tax due by the firm to the tune of about Rs. 7,500 and also paid to the representatives of the deceased a sum of Rs. 10,000 in May 1948 on account and subject to the taking , of accounts.