M/S. JUGGILAL KAMLAPAT V. M/S. SEW CHAND BAGREE AIR 1960 CAL. 463
FACTS
The case involves an application for execution of a decree based on an award by the Bengal Chamber of Commerce on June 14, 1950.
The dispute arises from a contract entered into between Sew Chand Bagree and Juggilal Kamlapat on September 25, 1948.
Manik Chand Bagree and Moti Chand Bagree oppose the application, claiming that the firm of Sew Chand Bagree was dissolved in October 1945.
Evidence from the Register of Firms suggests that the partnership firm was established in 1933 with three partners: Manik Chand Bagree, Moti Chand Bagree, and Jankidas Bagree.
The award holders argue that there was no dissolution of the firm and that all partners remain liable for any acts done.
ISSUE
Whether the firm of Sew Chand Bagree was dissolved in October 1945.
If there was a dissolution, whether the liability of the partners continues until public notice is given.
JUDGEMENT
The court finds that the firm of Sew Chand Bagree was dissolved in 1945 based on the evidence presented, including a deed of agreement, issuance of a trade licence, and opening of bank accounts.
The court holds that the liability of the partners continues until public notice of dissolution is given unless exempted by the provision to Section 45(1).
LEGAL ANALYSIS
The court discusses the applicability of the provision to Section 45(1), which exempts certain partners from liability if they were not known to be partners and had retired from the firm without public notice of dissolution.
The court distinguishes between the case of a retiring partner and the dissolution of a firm, emphasising that the provision applies in both scenarios.
Manik Chand Bagree and Moti Chand Bagree are exempted from liability under the proviso since they were not known to the person dealing with the firm to be partners and had gone out of the firm before the contract in question was entered into.