GOPAL BHAGWANDAS AHUJA Vs. JAGDISH BHAGWANDAS AHUJA

JUDGEMENT

(1.) THE Appeal arises from the judgment of a learned Single Judge dated 27 August 2013 dismissing a Motion for interim relief in a suit for partition. The Appellant is the original Plaintiff. For convenience of reference parties are referred to by their description in the suit. The Plaintiff and Defendants 1 to 8 are siblings, all of them being the children of Bhagwandas Ahuja who died on 14 April 1996. Between 1948 and 1969 Bhagwandas Ahuja carried on business of a kirana commission agency as a partner in a firm by the name of Mulchand & Co. The partnership firm had suffered larges losses and stopped its business activities in 1969. Bhagwandas was heavily indebted.

(2.) ON 5 February 1970 the first deed of partnership was entered into, with effect from 1969, under which the First Defendant commenced doing business in partnership under the name of Kanayalal Rameshkumar. The First Defendant was the eldest son of Bhagwandas, who had ceased to carry on any business. His other sons, Defendants 2 to 4 who were then minors were admitted to the benefit of the partnership. On 5 October 1973 Bhagwandas and his two partners in Mulchand & Co. filed a petition for insolvency in this court. Bhagwandas was declared as an insolvent on 5 October 1973. During the course of his examination in 1973 Bhagwandas stated that he had a liability of Rs.25.80 lacs to 17 creditors; that he had not carried on any business since 1969 and that he had not invested any money with any firm or relatives. The First and Second Defendants were stated to be brokers in the kirana business. In 1976 Defendants 1 to 4 purchased a flat in Jolly Maker Apartments, Cuffe Parade, which was sold in 1982 to acquire four separate flats at Andheri.

(3.) IN 1985, the First Defendant commenced a construction business in partnership with persons who were not members of the family, by the name of United Development Agency. In 1988 the First Defendant entered into a partnership with persons who were not members of the family in the name and style of CAMS Constructions for carrying on the business of construction. In 1989, the First Defendant entered into a partnership in the name and style of CAMS Developers for carrying on business as construction contractors with persons who were not members of the family. In 1989 the Plaintiff and the First Defendant formed a partnership with other partners including persons who were not members of the family in the firm name and style of CAMS India Corporation which carried on the business of construction contractors. In 1989 the Plaintiff who had joined the First Defendant as a partner in the business of CAMS India Corporation mortgaged his residential flat at Versova as security for obtaining a loan from the State Bank of India. In 1991 the Plaintiff and the First Defendant started carrying on the business in partnership by the firm name and style of Ahuja Constructions. Between 1991 and 2003, the Plaintiff and his wife were partners and shareholders in several partnership firms and companies set up by the First Defendant to undertake business initially as construction contractors and subsequently as developers.