TMI Blog1928 (10) TMI 3X X X X Extracts X X X X X X X X Extracts X X X X ..... 4 of the Rules framed under the Act. I will briefly summarize the material circumstances of this case. The original partnership was entered into by deed on the 3rd of November 1917 the contracting parties being Venkatarama Ayyar and Sons of the one part and D. Krishnaswami Ayyangar of the other. The business they carried on was that of silk merchants and the term of the partnership deed was expressed to be for five years, so that it expired on the 3rd of November 1922. On the 31st of August 1923 a new partnership deed came into effect for a period of 3 years, so that it would expire on the 31st of August 1926. In fact the business was continued thereafter by the partners as before, for aught we know, down to this day. A return was called f ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... round that, when the application for registration was made, the instrument of partnership had ceased to be operative, that the partnership was at that date being carried on under what must be regarded as a new, agreement which, being verbal, could not be said to be an instrument of partnership within the meaning of the Rules. The contention of the Assessees is that the true view of the position was that the business was, by verbal arrangement or tacit consent between the partners, being carried on under the original instrument of 31st August 1923, whose life had been prolonged and continued by the act of the parties. The dividing line no doubt is a very narrow one and language is used from time to time in the English authorities, which spea ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ; the other only for so long a time as they both shall choose. Am I then by any principle of law bound to assume or justified in assuming that all the special articles and conditions in the original written deed of partnership for a term are at once transferred by law to this new contract, which has no particular limit to the term of its duration? That would be a strong and extravagant assumption, and one that is not warranted by any principle or authority. 2. That passage appears to me to make it clear that Lord Westbury considered the contractual nexus of the parties after the expiry of the deed to rest upon the new implied oral agreement, and that the articles of the deed which are to be considered as preserved, are preserve ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on the general 'principles of the law of partnership and we should end eavour respectfully to follow those high authorities. I think that there is nothing in the language of Section 256 of the Indian Contract Act which in any way modifies the effect of these decisions. The result is that at the time that the Assessees applied for registration there was no operative document to be registered. 4. Another contention is raised, and that is this: The year of assessment with which we are concerned is the year 1927-28 and it is said that as that will be a return of trading profits for the year 1925-27 registration ought not to have been refused as four months of that trading year were before the expiration of the deed of the 31st ..... X X X X Extracts X X X X X X X X Extracts X X X X
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