TMI Blog1970 (2) TMI 136X X X X Extracts X X X X X X X X Extracts X X X X ..... ners. Khorshed and Nariman--widow and son respectively of Boatwalla--obtained letters of administration to the estate of Boatwalla and commenced an action in the High Court of Bombay for an account of the partnership between Boatwalla and the surviving partners and for an order paying to the plaintiffs the amount determined to be due to Boatwalla at the time of his death. The suit was resisted by the surviving partners-who will hereinafter be called ` the defendants'. Tarkunde, J., passed a preliminary decree declaring that qua Boatwalla the partnership stood 'dissolved on February 20, 1957, but not in respect of the surviving partners, and directed that an account be taken of the partnership upto February 20, 1957. Against that dec ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Subject to contract between the partners, the property of the firm includes all property and rights and interest in property originally brought into the stock of the firm or acquired, by purchase or otherwise, by or for the firm or for the purposes and in the course of the business of the firm, and includes also the goodwill of the business. Goodwill of the firm is -expressly declared to be the property of he firm. Counsel for the defendants relied upon s. 55 of the Partnership Act which makes a provision with regard to sale of goodwill after dissolution. It is provided by sub-s. (1) of s. 55 that : In settling the accounts of a firm after dissolution, the goodwill shall, subject to contract between the partners, be included in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... operate to extinguish the right in the assets of the firm of a partner who dies when the partnership agreement provides that on death the partnership is to continue. In the absence of a term in the deed Of partnership to that effect, it cannot be inferred that a term that the partnership shall continue notwithstanding the, death of a partner will operate to extinguish his proprietary right in the assets of the firm. Clause 8 of the deed of partnership reads as follows This partnership shall not be dissolved or determined by the death of any of _the parties hereto but the same shall be continued as between the surviving part:ners on the same terms and conditions but with such shares as shall then be determined. Mr. Nariman says that go ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ner in a firm dying or retiring shall not survive to' his legal representatives. Bachubai and L. A. Watkin's case( ) arose out of a case in which in the partnership -agreement it was provided that the firm shall be the agents of a company: carrying on business as a manufacturer of cotton textiles so long as the firm carries on business in Bombay, or until the firm should resign. The firm were appointed the agents of the Corn any and continued to act as agents. One of the, partners died, and a representative of the partner filed a suit,. claiming a certain share in the assets of the firm including the goodwill. It was observed by Sargent, c.J,in rejecting the claim of the plaintiff to a share in the goodwill of the business as an ass ..... X X X X Extracts X X X X X X X X Extracts X X X X
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