NALAM PADMANABHAM Vs. SAIT BADRINATT SARDA

JUDGEMENT

(1.) The suit in this case is for the dissolution and winding up of a partnership relating to an opium business. Defendants Nos. 1 and 2 were farmers of opium revenue under Government.

(2.) They, through their agents, entered into an agreement with the plaintiff agreeing to take him as a partner in their business both with respect to their right to vend opium in the Godavari District which they had already obtained, and with respect to any further right they might thereafter obtain in adjoining districts. The partnership existed for some years. The District Judge has dismissed the suit on the ground that the agreement of partnership on which the suit is based was opposed to public policy and unenforceable in law. The plaintiff who preferred this appeal contends that the lower court s view as to the nature of the contract is incorrect.

(3.) The 1st and 2nd defendants alone obtained a license from the Collector for the sale of opium. Clause 26 of the conditions, subject to which license was given, provides that "except with the permission of the Collector, you shall not sell, transfer or sub-rent your privilege. Nor shall you, if the Collector so orders, appoint any person as your agent for the management of your privilege without previously obtaining the Collector s approval of the agent." It is admitted that the Collector s sanction was not obtained for the partnership agreement. The object and intention of the agreement undeniably were that the defendants and their partner, the plaintiff, should be enabled to carry on the opium business without any license being taken out by the plaintiff for the purpose. The question we have to decide is whether the partnership is not illegal and cannot therefore afford a cause of action to the plaintiff for any relief based on it.