RAMCHANDRA TATYAJI PATHAK Vs. SHANKER RAGHUNATH PATHAK

JUDGEMENT

(1.) THIS is an application for revision under Section 25, Provincial Small Cause Courts Act. The first three defendants, who are applicants before me, and defendant 4, who is non-applicant 3, formed a partnership and they could be compendiously described as Mahalaxmi Talkies. Defendant 5, who was one Ranade, is non-applicant 2 before me while the plaintiff is non-applicant 1. Having obtained a decree for money on 28th March 1936 against Ranade in Civil Suit No. 166 of 1936 in the Court of Small Causes, Nagpur, the plaintiff on 21st November 1939 got attached in execution thereof what he described as a debt of Rs. 450 due by Mahalaxmi Talkies to Ranade. In spite of protest made by defendant 1 in his statement (Ex. P-2) the attached debt was put to sale on 16th June 1940 and purchased by the plaintiff for Rs. 100. It is on this title that the plaintiff claims to recover in the present suit the sum of Rs. 450 and interest from Mahalaxmi Talkies and has succeeded.

(2.) ON 21st April 1939, that is, long before the attachment referred to above, Ranade had brought a suit (Civil Suit No. 29-B of 1939 against defendants 1 to 4, claiming to be partners in the Mahalaxmi Talkies concern, for dissolution of accounts and share of profits. In that suit Ranade claimed that a sum of Rs. 450 had been invested by him as his share of capital in the partnership. In that suit Ranade succeeded in the trial Court and on 7th August 1940 there was a judgment followed by preliminary decree in his favour upholding his claim as a partner. However in appeal by defendants 1 to 4 the Additional District Judge, Nagpur, negatived Ranade's claim as a partner by judgment dated 31sh October 1941. At the same time the Additional District Judge allowed to Ranade a decree for Rs. 450 and 2 annas share of profits by way of remuneration. As the Additional District Judge had refused stay pending appeal considerable cost was meanwhile incurred in the trial Court in proceedings for making the decree final and when the final decree was eventually made on 5th May 1942 (EX. D-1) in accordance with the judgment of the appellate Court, it was ascertained that against the amount which Ranade had to recover he had to pay to defendants 1 to 4 Rs. 598.

(3.) SECTION 132, T.P. Act, is in the following terms: The transferee of an actionable claim shall take it subject to all the liabilities and equities to which the transferor was subject in respect thereof at the date of the transfer.