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1961 (2) TMI 52 - SUPREME COURTWhether the partnership in this case is a partnership at will and it is necessary to refer to the terms of the partnership agreement to determine this question? Whether the managing agency has been terminated legally; for if that is so the partnership would also be determined? When the managing agency can be said to have been terminated, i.e., whether on March 22, 1943, or on September 29, 1943? Held that:- In the circumstances the partnership was not at will and it was pointed out that only when all the partners except one retired that the partnership would come to an end because there could not be a partnership with only one partner. We are, therefore, in agreement with the High Court that the contract in this case disclosed a partnership the determination of which is implied, namely, the termination of the managing agency and, therefore, under section 7 of the Act it is not a partnership at will. In the circumstances it is unnecessary to consider whether the case will also come under section 8 of the Act. The resolution of the board of directors terminating the managing agency agreement, confirmed by the general meeting of the shareholders, did legally terminate the managing agency between the mills and Muthappa and Company. It is true that in these resolutions a second reason was given for the termination, viz., that Muthappa and Company had come to an end because of the notice of March 4. That legal position is in our view incorrect; but that apart there were otherwise sufficient reasons for the mills to terminate the managing agency in the circumstances with which it was faced. There was an implied term in the contract of partnership that it will determine when the managing agency agreement with the mills terminates, the partnership in the present case must under the contract be deemed to have determined on March 22, 1943. Therefore, the respondent will be entitled to an account only from November 15, 1939, to March 22, 1943.
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