BENCH: S.B. Sinha, Markandey Katju
FACTS:
- Defendant and late Narasimha Murthy were approached to invest money in poultry business at Hyderabad
- An arrangement was entered into by the parties to share profits, expenditure and interest to investments made @ 15% p.a.
- After death of N. Murthy, the manufacturing plant was also installed. The plaintiffs inherited 2/3rd undivided interest of the said poultry and tubes manufacturing business and Appellant No.2 had the remaining 1/3rd share. The joint family and Respondent No.3 herein had no interest in the said business concern.
- A suit was thereafter filed on 12.09.1985. The father of the Plaintiffs-Respondents Nos.1 and 2, namely, Respondent No.3 in his written statement for all intent and purport supported the case of the plaintiffs alleging that there had been no settlement of account
ISSUE:
- Whether the poultry business carried on by the appellants is a joint venture
CONTENTION BY APPELLANTS:
- That there was no consideration in respect of the execution of deed of partnership deed entered into by and between the appellants with her daughter
CONTENTION BY DEFENDANTS:
- That there was no signature of any party nor any amount had been paid pursuant to full and final settlement of the accounts
JUDGMENT:
The court held that the business was a joint venture and not the sole proprietary concern of the Appellant No. 1. There is no document in writing to prove partnership. Accounts had not been demanded by the plaintiffs or the defendant no. 3 for a long time. Even an oral partnership had not been proved. The appeal was allowed to the extent of consideration under Limitation Act and Order 41 Rule 31 of the Code of Civil Procedure without costs.
