VENKATARAMANA RICE MILL COMPANY Vs. SWAMI SRIHARI

JUDGEMENT

(1.) The plaintiff is the appellant whose suit has been dismissed by both the Courts below. The plaintiffs, which is a registered firm, stopped its business in 1953. By a resolution dated 11th November, 1953, all the partners who filed the present suit were authorised to collect the debts due to the firm. The defendant who was also a partner owed a sum of Rs. 1,839-58 by 6th October, 1954, to the firm.

(2.) The defendant executed a promissory note for the said amount and also renewed it on 13th October, 1956. It is on the last promissory note that the suit is instituted The principal contention of the defendant was that unless the partnership accounts are settled no single item can form the basis of a suit between the parties. Both the Courts below accepted this defence and dismissed the plaintiff's suit.

(3.) What is contended by Mr. K. Suryanarayana, the learned Counsel for the appellant plaintiff is that the defendant was a party to the resolution passed by all the partners unanimously, that the debts due to the patnership firm should be collected and the debts which the partnership firm had to pay be discharged. In order to implement that resolution, they authorised the two partners to institute suits and take necessary action. It is in pursuance of that resolution that the present suit was filed. The defendant is not therefore entitled to go back upon the resolution and dispute the promissory note which he himself executed.