MANNU LAL Vs. NELIN KUMAR MUKERJI

JUDGEMENT

(1.) The facts out of which this and the connected appeals arise are somewhat complicated but it is unnecessary to state them at any great length. It appears that there were three brothers, Ghasi Ram, Shankar Lal and Mannu Lal. There was also their father Fauji Lal. Ghasi Ram appears to have been a man of considerable business capacity and intelligence and to have started a number of businesses in various parts of the province, which were upto a certain period at least quite successful. He associated his father and brothers as partners in some of the concerns without any contribution of capital on their part. All went well until one of the brothers Mannu Lal started a suit for partition against his brother Ghasi Ram, Ghasi Ram, instead of meeting this suit in a straightforward fashion and having all questions decided between himself, Mannu Lal and the other members of the family, got himself declared an insolvent. After a good deal of litigation (out of which probably the legal profession alone gained anything), a scheme for composition was put forward and eventually accepted by the creditors and the Court. The bankruptcy was annulled. Before this happened, however, a suit had been commenced by the Receivers against Shankar Lal and Mannu Lal in respect of their alleged liability, as partners, in some of the concerns, to Ghasi Ram and his son as the proprietors of certain other concerns in which Shankar Lal and Mannu Lal had no interest. Notwithstanding the fact that the declaration of insolvency was annulled, the present suit was continued and the learned Subordinate Judge has made a decree in favour of the Receivers, plaintiffs in the suit.

(2.) The first point argued on behalf of Shankar Lal and Mannu Lal (the latter being represented by Mr. O Conor, Barrister, and the former by Mr. Katju) was that the annulment of the insolvency rendered the suit by the Receivers unmaintainable and that on this ground alone the suit ought to have been dismissed. In our opinion this contention has no force. The defendants are alleged to be the debtors of Ghasi Ram and the other late insolvents Ghasi Ram makes no objection to the suit being maintained, (the objection that is raised is at the instance of the alleged debtors). There can be no doubt that the suit was properly instituted originally. There can be no doubt the suit could have been continued after the annulment in the name of the late insolvents, if not by the Receivers. It seems perfectly clear that if the debtors pay the amount found due either voluntarily or under stress of a decree, they will get a good discharge for their indebtedness to the late insolvents. We think under the circumstances that no injustice of any kind could be done to the defendants by the case being heard out on the merits.

(3.) The next point argued was that the suit should have been dismissed, because the" suit as framed did not ask for an account of the transactions relating to a number of other concerns in which the parties were interested. Such pleas were raised in the Court below on behalf of the defendants and the Court admitted the equity of the defence by directing that the account should be taken in such a way that the liability, if any of the defendants would be finally decided after giving them credit for any sums which might be due to them from Ghasi Ram on account of the other concerns. We think that having taken care to prevent the possibility of any injustice being done to the defendants on account of original frame of the suit, the Court below was quite right in not dismissing the suit but directing that the accounts should be taken.