RAM SINGH Vs. DAULAT RAM

JUDGEMENT

(1.) THE plaintiff is in appeal against judgment, decree dated 1-11-1995, passed by the District Judge, Mandi, Kullu and Lahual-Spiti Districts at Mandi, in Civil appeal No. 28 of 1992, accepting the appeal and setting aside preliminary decree passed by the Sub-Judge, Court No. 2, Mandi in civil Suit No. 86 of 1990. The parties are referred in the same manner, as in the trial court.

(2.) THE brief facts of the case are that plaintiff filed a suit for rendition of accounts against defendants alleging that the parties entered into an agreement to install a sawmill jointly for which Rs. 5,000/- were contributed by each partner and the saw-mill was installed at Bali Chowk. There was an oral agreement between the parties that each of the partner shall share the loss and profit in equal shares. The defendant No. 1 borrowed Rs. 1000/- from Chakurtha Co-operative agriculture Service Society on behalf of plaintiff and invested this amount in the business of the saw-mill. According to the plaintiff his capital in the business of the partnership became Rs. 6000/ -. The defendants without the consent and permission of the plaintiff sold the saw mill to one Sham singh for a consideration of Rs. 30,000/-, but they did not render the account. On these grounds, the plaintiff filed the suit for rendition of account and prayed for passing of preliminary decree.

(3.) DEFENDANTS contested the suit by filing written statement and took preliminary objection of maintainability of the suit, limitation, locus standi of the plaintiff to file the suit. On merits, they have alleged that 18-20 years ago, the parties had orally agreed to install a saw-mill and the same was installed. The saw-mill suffered losses after two years of its installation. The plaintiff and defendant No. 2 withdrew from the partnership and share of the plaintiff and defendant No. 2, profit and loss was paid back to them. The defendant No. 1 is the sole proprietor of the business for the last 16-17 years. It has been denied that loan was taken from Chakurtha Co-operative Agriculture service Society by the plaintiff and was invested in the saw-mill. The saw-mill was sold to Sham Singh, who is in exclusive possession thereof. The defendants prayed for dismissal of the suit.