TMI Blog1957 (9) TMI 68X X X X Extracts X X X X X X X X Extracts X X X X ..... and the dispute relates to this inclusion. It appears that the assessee up to the end of June, 1949, was carrying on business in partnership with one Gutmann under the style of Messrs. Metallica Works, a business of refining, melting and casting metals. The partnership was dissolved at the end of June, 1949, and on the 1st of July, 1949, he entered into a partnership with his wife Mrs. Liselotte Magnus. The partnership deed was executed on the 13th of October, 1949. Clause 7 of the partnership deed casts an obligation on both the partners to devote their time and attention exclusivly to the business of the partnership; but there is no clause in the partnership deed entitling Mrs. Magnus to receive any salary or other remuneration for dev ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... answer to the first question is in the affirmative, whether there was any material on record to come to the conclusion that Mrs. Magnus, a partner of the said firm, was being remunerated by it in her capacity as a partner? Now, in so far as the first of these two questions is concerned, it appears to us that since a contract can only be bilateral and the same party cannot be a party on both the sides, there can hardly be a contract between A on the one side and A and B on the other side-particularly a contract of personal employment. Lindley in his famous treatise on the Law of Partnership, 11th edition, at page 154, states: In point of law, a partner cannot be employed by his firm for a man cannot be his own employer. The true legal ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... a workman employed, when that position would involve that he would be both employer and employee. Mathew and Cozens-Hardy, Lord Justices, concurred with the said opinion. Mathew, L.J., at page 329 observed : The argument on behalf of the applicant in this appeal appears to involve a legal impossibility, namely, that the same person can occupy the position of being both master and servant, employer and employed. The deceased man in this case was a partner; and the arrangement made between him and his co-partners as to the payment of wages to him was really an agreement with regard to the mode in which accounts were to be taken between the partners, and to the share of profits to be received by him in excess of that received by the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e after the agreement of partnership. Paragraph 1 of the affidavit recites the fact that there was an instrument of partnership on the 13th October, 1949, and then paragraphs 2 and 3 are as follows : 2. Subsequently we had varied the terms of partnership as appearing in the aforesaid instrument of partnership. Accordingly Mrs. Liselotte Magnus having been admitted to partnership in consideration of natural love and affection by Mr. Sigmund Magnus, has been receiving her 10% (ten per cent.) share in the profits of the partnership without being required to devote her whole time and attention exclusively to the business of partnership. 3. In addition, inasmuch as she, Mrs. Liselotte Magnus, has been, at the instance of Mr. Sigmund Ma ..... X X X X Extracts X X X X X X X X Extracts X X X X
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