MURLIDHAR HASPURIA Vs. BANSIDHAR HALWAI

JUDGEMENT

(1.) The respondent filed the suit out of which this appeal arises, claiming specific performance of a verbal agreement, possession of various articles of the business carried on under the name and style of "Murlkihar Apnrwalla," alternatively a decree for Rs. 20,500/- declaration that the sole owner of the business, alternatively decree for dissolution of the partnership business, and for various other reliefs. In this suit a judgment and preliminary decree was passed on February 3, 1971. for dissolur-tion of the partnership, a receiver of the partnership assets was appointed and a decree for a sum of Rs. 1000/- as damages was also passed in favour of the respondent for wrongful trespass by the appellant. This appeal is directed against this judgment and decree.

(2.) The respondent's case was that since prior to December 1, 1961 he and the appellant carried on business of a Flour Mill in co-partnership under the name and style of "Murlidhar Agarwalla". In this partnership the respondent had a one third share and the appellant a two third share.

(3.) On or about December 1, 1961 the parties entered into an agreement in writing, which provided that the respondent would exclusively manage and be in charge of the said business for a period of 5 years, with an option for a further 2 years. During this period the respondent would pay to the appellant a sum of Rs. 125/- per month but the latter would not be liable for any loss or expenses. The liabilities for income tax upto March 1, 1962, would be paid by the appellant and respondent in the proportion of two third and one third respectively. In terms of this agreement the respondent carried on the business for 7 years. According to the respondent, before the expiry of the term of 7 years, on December 1, 1968, a verbal agreement was entered into between the parties under the terms of which, the appellant was to relinquish and transfer his right, title and interest in favour of the respondent, the consideration for such transfer being a sum of Rs. 17,500/-. Of this amount Rs. 500/- was to be paid in the first instance and the balance of Rs. 17,000/- was to be kept in deposit with a common friend, until transfer of the tenancy from the name of the appellant to the respondent. On such transfer this sum of Rs. 17,000/- was to be withdrawn by the appellant from the third party. It is alleged in the plaint that the sum of Rs. 500/- was paid on November 4, 1968 and the sum of Rs 17,000/- was deposited with one Banwarilal Agarwala.