K.P.A. VELLAYAPPA NADAR (DEAD) THROUGH LRS. versus BHAGIRATHI AMMAL AND OTHERS

K.P.A. VELLAYAPPA NADAR (DEAD) THROUGH LRS. versus BHAGIRATHI AMMAL AND OTHERS

The partnership constituted under Ex.A-2 mutually stood dissolved on February 14, 1970 with settlement of accounts, and the new partnership under Ex.B-1 came into existence from February 15, 1970, to which the appellant was not a partner. There is no evidence of the appellant's participation or liability in the business carried on thereafter; hence, he is not liable to render accounts for the period after his exit from the firm.

Parties
Appellant: K.P.A. Vellayappa Nadar (Dead) Through LRs.; Respondents: Bhagirathi Ammal and Others
Jurisdiction
India
Judgment Date
06 November 1996
Procedural Posture
Civil Appeal / Appeal From Judgment and Decree Dated 3.4.1980 of the Madras High Court in Appeal No. 180 of 1976
Outcome
Appeal allowed
Legal Topics
Dissolution of Partnership, Rendition of Accounts, Liability of Former Partners
Partnership Law Dissolution of Partnership Rendition of Accounts Liability of Former Partners

Case Brief

Summary, issues, holding and outcome

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Parties

K.P.A. Vellayappa Nadar (Dead) Through LRs.

Appellant

Bhagirathi Ammal and Others

Respondents

Procedural Posture

Civil Appeal / Appeal From Judgment and Decree Dated 3.4.1980 of the Madras High Court in Appeal No. 180 of 1976

Legal Issues

  1. 1 Whether the appellant, who stepped out of the partnership in February 1970, is liable to render accounts for transactions after his retirement from the partnership
  2. 2 Whether the partnership under Ex.A-2 was dissolved and settlement of accounts done on 14.2.1970

Ratio Decidendi

The partnership constituted under Ex.A-2 mutually stood dissolved on February 14, 1970 with settlement of accounts, and the new partnership under Ex.B-1 came into existence from February 15, 1970, to which the appellant was not a partner. There is no evidence of the appellant's participation or liability in the business carried on thereafter; hence, he is not liable to render accounts for the period after his exit from the firm.

Court Disposition

Appeal allowed

Orders

  • Judgment and decree of the High Court set aside
  • Judgment and decree of trial court restored