Case Note & Summary
The appellant, original plaintiff, filed Civil Suit No. 887 of 1994 seeking a declaration that the partnership firm M/s. Athavale Dairy was dissolved on 20.4.1994, and for accounts and his share in profits and assets. In that suit, he applied for appointment of a court receiver. The trial court rejected that application. The plaintiff appealed. During the appeal, the appeal was dismissed for non-prosecution on 24.11.2004 but was restored by Civil Application No. 178 of 2005. The High Court heard the appeal. The appellant argued that the partnership was at will and could be dissolved by any partner giving notice, which he had done. The High Court noted that an interim order dated 13.3.1996 by Justice K.K. Baam had already appointed a receiver, with respondents acting as agents of the receiver. The court allowed the appeal, set aside the trial court's order, and directed that the receiver already appointed continue. The judgment is brief and focuses on the procedural history and the fact that a receiver was already in place.
Headnote
A) Partnership Law - Dissolution of Partnership at Will - Appointment of Receiver - Partnership Act, 1932, Section 43 - The plaintiff sought dissolution of a partnership at will by notice and filed a suit for declaration of dissolution and accounts. The trial court rejected the application for appointment of a court receiver. The High Court allowed the appeal, noting that a receiver had already been appointed by interim order and the appeal was restored. (Paras 1-4)
Issue of Consideration
Whether the trial court was justified in rejecting the plaintiff's application for appointment of a court receiver in a suit for dissolution of partnership at will and accounts.
Final Decision
Appeal allowed. The order of the trial court rejecting the application for appointment of court receiver is set aside. The receiver appointed by the interim order dated 13.3.1996 shall continue. Civil Application No. 178 of 2005 is allowed and disposed of.
Law Points
- Partnership at will can be dissolved by any partner giving notice
- Court receiver can be appointed in partnership dissolution suits to protect assets pending final adjudication
Case Details
2005 LawText (BOM) (05) 22
Appeal From Order No. 270 of 1996 with Civil Application No. 178 of 2005
Mr. S.V. Pitre for the appellant, Mr. G.S. Godbole for the respondents
Shri Anant Purushottam Athavale
Govind Purushottam Athavale & ors.
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Nature of Litigation
Civil appeal against rejection of application for appointment of court receiver in a suit for dissolution of partnership and accounts.
Remedy Sought
Appointment of court receiver over the partnership assets pending final disposal of the suit.
Filing Reason
The trial court rejected the plaintiff's application for appointment of a court receiver.
Previous Decisions
The trial court (Civil Judge, Sr. Division, Pune) rejected the application for appointment of court receiver. An interim order dated 13.3.1996 by Justice K.K. Baam appointed a receiver, with respondents as agents.
Issues
Whether the trial court erred in rejecting the application for appointment of a court receiver in a suit for dissolution of partnership at will.
Submissions/Arguments
Appellant argued that the partnership was at will and could be dissolved by any partner giving notice, which was done.
Ratio Decidendi
In a suit for dissolution of partnership at will, the court may appoint a receiver to protect the partnership assets pending final adjudication, especially when the partnership is dissolved by notice.
Judgment Excerpts
The appellant/original plaintiff filed an application before the Civil Judge, Sr.Division, Pune for appointment of Court Receiver. That application came to be rejected by the lower Court and, therefore, this Appeal.
Counsel for the petitioner contended that the partnership was at Will and it can be dissolved by any partner by giving a notice to the other partners.
Procedural History
The appellant filed Civil Suit No. 887 of 1994 for dissolution of partnership and accounts. He applied for appointment of a court receiver, which was rejected by the trial court. He appealed (Appeal From Order No. 270 of 1996). The appeal was dismissed for non-prosecution on 24.11.2004 but restored by Civil Application No. 178 of 2005. The High Court heard the appeal and allowed it on 6.5.2005.
Acts & Sections
- Partnership Act, 1932: Section 43
