S HARDUTT SINGH Vs. CH MUKHA SINGH

JUDGEMENT

(1.) THIS civil second appeal is directed against the judgment and decree dated May 20, 1971 of the Sub Judge (Chief Judicial Magistrate), Jammu, whereby he affirmed the judgment and decree dated December 19, 1970, of the Munsiff, Jammu, dismissing the appellants suit for dissolution of partnership and rendition of accounts.

(2.) IT appears that the appellant sought the dissolu ­tion of partnership known as Naiya Kashmir Transport Company, Jammu, which was brought into existence vide deed dated February 10, 1964, on the grounds that the part ­nership was at will, that the defendants Nos. 1 to 7 were not interested in promoting the partnership business and had started a new firm known as M/s Ashoka Transport Service Jammu, that the said defendants had in collusion with each other been acting in a manner which had prejudicially affected his interests and had caused huge loss to him, that in breach of the partnership agreement the defendants had withdrawn the entire amount from the Jammu and Kashmir Bank which stood to the credit of the partnership, that in spite of the fact that the partnership had earned profits of thousands of rupees since the dispute between the parties began the defendants had shown that it was running at a loss, that mutual confidence amongst the partners having been lost the partnership business could not be carried on save at a loss and that it was just and equitable that the partnership be dissolved.

(3.) THE suit was resisted on various grounds. The main defence taken by the contesting defendants was that the suit was not maintainable as the conditions lay down in clause 18 of the aforesaid partnership agreement had not been fulfilled in that one months notice which was man ­datory had not been given the balance sheet had not been prepared and the amount due to or from each partner had not been paid. The defendants further contended that the suit was also not maintainable as under clause 10 of the agreement all the disputes between the parties had to be referred to arbitration.