Purewall & Ors v Purewall [2008] ScotCS CSOH_147 (21 October 2008)

Purewall & Ors v Purewall [2008] ScotCS CSOH_147 (21 October 2008)

The 'date of determination' in clause Ninth (b) refers to the date of dissolution of the partnership, not the date of the arbiter's award. Payment and contractual interest are due from the date of dissolution, as this reflects commercial reality and compensates outgoing partners for use of their capital.

Citation
[2008] ScotCS CSOH_147
Parties
Pursuer: Hardev Singh Purewall; Pursuer: Kirpal Kaur Purewall; Pursuer: Belhar Singh Sanghera; Pursuer: Surinder Kaur Sanghera; Defender: Gurbax Kaur Purewall
Jurisdiction
Scotland
Judgment Date
21 October 2008
Procedural Posture
Commercial Partnership Dispute / Post Arbitration, Final Determination
Outcome
judgment for pursuers
Legal Topics
Dissolution of Partnership, Settlement of Accounts, Interest on Outgoing Partner's Share, Contractual Interpretation
Commercial Law Partnership Law Dissolution of Partnership Settlement of Accounts Interest on Outgoing Partner's Share Contractual Interpretation

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Parties

Hardev Singh Purewall

Pursuer

Kirpal Kaur Purewall

Pursuer

Belhar Singh Sanghera

Pursuer

Surinder Kaur Sanghera

Pursuer

Gurbax Kaur Purewall

Defender

Procedural Posture

Commercial Partnership Dispute / Post Arbitration, Final Determination

Legal Issues

  1. 1 When does the obligation to pay outgoing partners' shares accrue under the partnership contract?
  2. 2 Is interest payable from the date of dissolution or only after final determination by arbiter?

Ratio Decidendi

The 'date of determination' in clause Ninth (b) refers to the date of dissolution of the partnership, not the date of the arbiter's award. Payment and contractual interest are due from the date of dissolution, as this reflects commercial reality and compensates outgoing partners for use of their capital.

Court Disposition

judgment for pursuers

Orders

  • First instalment of pursuers' shares was due on 31 May 2004; contractual interest is due from 30 November 2003; case to be put out by order to ascertain precise amount due.