JALDU PAIDAYYA Vs. JALDU MANIKYALA RAO

JUDGEMENT

(1.) In the suit out of which this appeal arises, the appellant, who was the plaintiff, sued for the recovery of Rs. 10,584-2-3, being the amount with interest paid by him towards the income-tax which was payable by the defendant, who is the respondent in this appeal. The learned Subordinate Judge, Masulipatam, dismissed the suit (O. S. No. 36 of 1951) on the ground that it was barred by Order 2, Rule 2, Civil Procedure Code.

(2.) The material facts are not in controversy and are as follows: The plaintiff is the elder brother of the defendant and they were carrying on several businesses jointly as partners. In 1942 differences arose between the brothers with regard to the joint businesses and the plaintiff instituted a suit (O. S. No. 717 of 1942) in the District Munsifs Court, for the dissolution of the partnership and for accounts. The plaintiff and the defendant entered into a compromise in that suit and a compromise decree was passed on 16-7-1945. In accordance with the said compromise, the defendant was given the several businesses and properties as per Ex. P. 14 which was attached to the decree in that suit and in lieu thereof the plain-tiff was given a sum of Rs. 67,000.00. As per the terms of the compromise the plaintiff gave up all his rights in all the businesses enumerated in Ex. P-14 and in respect of those businesses, the defendant undertook to pay all the outstanding arrears of taxes and future taxes such as income-tax, profession-tax, Municipal-tax etc. It was also stipulated that if for any reason, the defendant failed to pay those taxes and the plaintiff had to pay them, the latter was entitled to be reimbursed by the defendant with interest and incidental expenses.

(3.) With regard to the said businesses, the income-tax authorities made assessments for the years 1943-44; 1944-45 and 1945-46. The defendant having failed to pay those taxes in spite of the demands made by the plaintiff, the latter had to pay the amounts. For the year 1943-44, the plaintiff paid Rs. 8774-12-0 to the income-tax authorities in three installments as follows: Rs. 7330-15-0 on 5-4-1948, Rs. 200.00 on 29-4-1948 and Rs. 1443-13-0 on 29-4-1948; and in respect of the income-tax assessed for the two subsequent years i. e., for 1944-45 and 1945-46, and plaintiff paid the amounts of Rs. 225-0-0 and Rs. 740-15-0 on 13-8-1946 and 14-1-1947 respectively.