VEDACHALA MUDALIAR M Vs. RANGARAJU NAIDU S

JUDGEMENT

(1.) THE plaintiff appeals from the judgment and decree dated 30th November 1955, on the file of the Subordinate Judge of Pudukottai, in O. S. No. 7 of 1954, on his file.

(2.) THE plaintiff and the defendant's father, Srinivasalu Naidu, were doing business as partners until Srinivasalu Naidu's death, on 19th September 1942. After his death, the defendant was admitted to the partnership in his father's stead. THE main business of the firm consisted in the sale of petrol and allied products as agents of Messrs. Burmah Shell Co. THE firm had its headquarters at Pudukottai and branch at Karaikudi and other places. Though, on Srinivasalu Naidu's death, that partnership was, in law, dissolved, accounts were not settled and the assets and liabilities were taken over by the new firm of which the plaintiff and defendant were the partners. This partnership was registered under the Indian Partnership Act.

(3.) THE defendant in his written statement pleaded that, during the period of his partnership with the plaintiff, the affairs of the firm had been managed solely by the plaintiff, and that the defendant was a sleeping partner. THE defendant denied that he had received or had been paid any part of the profits said to have been illegally earned. THE defendant pleaded that, since the plaintiff appeared to have had the exclusive benefit of the illegal profits, he was bound solely to bear the burden of the penalty.