BANSHI LAL Vs. JAMUNA PRASAD

JUDGEMENT

(1.) This is a plaintiff's second appeal in a suit for accounts of the business of an alleged partnership although in the first relief claimed in the plaint a decree for recovery of Rs. 4,500/-has also been sought. The trial court de-creed the suit in two parts, by passing a final decree for recovery of Rs. 2500/-and by passing a preliminary decree for rendition of accounts against the defendant in respect of the Theka Business of Quraghar, Gorakhpur in terms of the Deed of Partnership, dated 21-8-52 Ex. 1. In the decree so passed the trial Court declared that the parties shall be entitled to profit and loss equally and to recover interest at the rate of Rs. 6% per annum on the advances, over and above the capital investment, and that the accounts and documents filed by the plaintiff-relating to the said Kuraghat business shall be deemed to be the accounts of the plaintiff and that the defendant shall also be entitled to furnish his own account books and statements of accounts relating to that business subject to the right of the parties to challenge the genuineness or otherwise of the account furnished by the other party. A further direction for the appointment of a Vakil-Commissioner for taking of accounts was also given.

(2.) On appeal by the defendant, the lower appellate court dismissed the suit, both in respect of the amount of Rupees 2500/- for the recovery of which a final decree was passed by the trial Court, and for rendition of accounts, on the ground that both the claims were barred by Section 69 of the Indian Partnership Act, on account of the fact that the Finn was not registered.

(3.) The first question which accordingly arose in this appeal was whether the plaintiff's claim was barred by Section 69 of the Indian Partnership Act. The relevant facts having a bearing on this point are these: The plaintiff claimed that the defendant carried on the business of a government contractor of buildings and roads etc. at Kuraghat, Gorakhpur; that in 1952 the defendant offered to take the plaintiff as a partner for financing the said business; that the plaintiff wanted to invest money in some business for profit and consequently an agreement of partnership was executed between the parties and registered on 21-8-1952. The plaint proceeds on to quote the terms of the instrument and then to state that a contract for white-washing of military barracks at Varanasi, during the year 1952-53 was undertaken and complete in partnership and, on taking accounts of that work Rs. 3,300/- were found due to the plaintiff out of which Rs. 800/- were paid by the defendant in cash and a cheque for Rs. 2,500/- on Punjab National Bank, Gorakhpur, was given. That cheque was dishonoured an account of the paucity of funds in the defendant's account with the Bank on which the defendant assured the plaintiff that he would pay the amount as soon as he was able to arrange for the same. It was then alleged that since then a further contract for construction of latrines at Kuraghat Depot was undertaken in partnership during the year 1954-55. In that contract the plaintiff had to invest a total of about Rupees 12,000/- out of which Rs. 10,000/- was paid back by two cheques. However, the defendant did not pay anything out of the further payments received by him and when the work was finished the plaintiff asked the defendant to settle the accounts and pay the plaintiff's share of the profits together with Rs. 2,000/- of his investment and Rs. 2,500/- originally due as aforesaid. It is then alleged that the defendant did not render the accounts and did not pay the amounts due to the plaintiff in spite of registered notice dated 6-4-1966, hence the suit. However, the plaintiff also said that although he was entitled to interest at the rate of Rs. 6% per annum, he was giving up the claim of interest and claimed Rs. 4,500/- towards the investment, and his share of profits after accounting, the amount claimed on that account was tentatively fixed at Rs. 500/- although in the valuation clause of the plaint the value of the claim of accounting has been put at Rs. 2,500/-.