MRS GERTRUDE OATES Vs. MRSMILLICENT D SILVA

JUDGEMENT

(1.) On 2 September, 1925, Mrs. Gertrude Oates of the one part and Mrs. Millicent D Silva of the other part entered into a partnership deed, and thereafter it appears carried on business as hotel, proprietresses at the Silver O aks Hotel, Ranchi. On 26 October 1927, there was an agreement on the part of Mrs. Oates to pay Mrs. D Silva rent for her portion of the hotel premises. Out of those two facts arose two actions which first of all came before the learned Munsif and eventually on appeal before the learned Judicial Commissioner of Chota Nagpur. As regards the first action Mrs. Oates claimed against Mrs. D Silva an injunction restraining her from carrying on another hotel business contrary to the Articles of Partnership, and the main issue in that case was whether on 1 April 1926, the partnership had been dissolved or not.

(2.) The learned Munsif in the trial Court and the learned Judicial Commissioner in the appellate Court came to the conclusion that it had. In those circumstances Mrs. Oates failed in her action, as I have stated, it was in October 1927, after certain events to which I shall presently briefly refer, an undertaking was given by Mrs. Oates to pay Mrs. D Silva rent for her portion of the premises, as appears from the judgment of the learned Munsif that as regards the buildings of the Silver O aks Hotel, the two ladies were proprietresses each enjoying a moiety. At the same time as the action to which. I have already referred as the partnership action was brought, Mrs. D Silva brought an action against Mrs. Oates for rent and it is that action out of which this appeal arises. To understand the points which have been raised, it is necessary, to state one or two facts.

(3.) It was in March 1926, about six months after the partnership was started that these two ladies came to consider the question of selling their respective shares in the Silver O aks Hotel. The reason as far as I know was not stated, but they were minded, as I have said, to sell their shares, and while they were considering the matter, a Mr. Clayton came along and offered to rent the Silver O aks Hotel as it would appear his lease at a competing hotel was coming to an end and the landlord of the premises was asking him to pay an enhanced rent which, in his view, was exorbitant. Negotiations then took place between Mr. Clayton and these two ladies, and ultimately on 1 April Mrs. D Silva wrote to Mrs. Oates saying that she had allowed Mr. Clayton to go into possession, in the meantime, On 26 of March after some correspondence between Mrs. D Silva and Mrs. Oates, Mrs. Oates having sent a telegram which was to the effect "Accept Clayton's offer writing."