K SREERAMAMURTHY Vs. P ANDA RAO

JUDGEMENT

(1.) The main question for determination in this appeal is whether the sale deed in favour of plaintiffs conveying the interest of a partner in a partnership firm is hit by Condition 12 of the licence for cinema exhibition issued under the A.P. Cinemas (Regulation) Act, 4 of 1955 and consequently void.

(2.) The suit is laid for accounting of dissolved firm and in the alternative for the share of the assets of the partnership firm on the basis of the sale deed obtained by the plaintiffs from defendant 3. The plaintiffs claim that they purchased the property under sale deed dated 5-1-1970 and the half share of defendant 3 in the partnership firm consisting of defendants 1 to 3. It is averred that originally partnership firm was formed consisting of one Pydi Narashimha Apparao, father of defendants 1 and 2, defendant 3 and one Papi Naidu for running a cinema talkies. The said Papi Naidu sold his one-third share to the father of defendants 1 and 2 and defendant 3 and the half share of defendant 3 was sold to the plaintiffs and thus the plaintiffs are owners of half share in the firm and hence the suit.

(3.) The suit was resisted mainly on the ground that defendant 3 obtained a licence for running the theatre sold the property to the plaintiffs and the said sale is hit by condition 12 of the licence and consequently the sale is void.