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1966 (10) TMI 28 - SUPREME COURTWhether, on the facts and circumstances of this case, the non-registration of the relinquishment deed can invalidate the transfer of the business assets to the new partnership ? Can the registration application be rejected merely on the ground that the business assets were not legally transferred to the new partnership ? Held that:- The deed of relinquishment, in this case, was in respect of the individual interest of the three Singhania Brothers in the assets of the partnership firm in favour of the Kamla Town Trust, and, consequently, did not require registration, even though the assets of the partnership firm included immovable property, and was valid without registration. As a result of this deed, all the assets of the partnership vested in the new partners of the firm. A deed of relinquishment, or a deed of gift, differs from a deed of partition in which it is not possible to hold that the partition is valid in respect of some properties and not in respect of others, because rights of persons being partitioned are adjusted with reference to the properties subject to partition as a whole. In the case before us, therefore, the deed of relinquishment was valid at least in respect of movable properties, and the partnership seeking registration, thus, became owner of all the movable assets of the partnership in addition to having contributed a sum of ₹ 50,000 as capital investment in it. The Kamla Town Trust and Jhabbarmal Saraf constituted the partnership under a deed of partnership, which was properly executed, and, in these circumstances, the partnership that came into existence was clearly valid in law. There is, therefore, no force in this appeal
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