TMI Blog2003 (2) TMI 63X X X X Extracts X X X X X X X X Extracts X X X X ..... ration Act. The appeals are accordingly allowed. The judgment of the High Court is hereby set aside. The result would be that the objections against the award dated October 2, 1972, stand rejected and the award is ordered to be made a rule of the court. - 5680 OF 1994 - - - Dated:- 5-2-2003 - Judge(s) : M. B. SHAH., ASHOK BHAN., ARUN KUMAR JUDGMENT The judgment of the court was delivered by ARUN KUMAR J.--These appeals involve a pure question of law as to whether an award by which residue assets of a partnership firm are distributed amongst the partners on dissolution of the partnership firm requires registration under section 17 of the Registration Act, 1908? Briefly the facts are that a partnership firm was constituted c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , the present appeals. We have carefully perused the award in question. By the award the arbitrators have distributed the assets of the dissolved firm between the partners in accordance with their respective shares in the partnership. The real question for consideration is whether such an award amounts to creation of or transfer of any fresh rights in movable or immovable properties so as to bring it within the ambit of section 17 of the Registration Act? A perusal of the award shows that it is simply a case of distribution of assets of the dissolved firm amongst the partners themselves. A partnership firm is not an independent legal entity, the partners are the real owners of the assets of the partnership firm. Actually the firm name is ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of distribution of assets of a dissolved firm by way of an award. This court noticed that the award read as a whole made it clear that the arbitrators had confined themselves to the property belonging to the partnership firm and had scrupulously avoided other properties. While distributing the residue assets, the arbitrators allocated the properties to the partners. Section 48 of the Partnership Act was applied and the properties were allocated to the partners as per their share on the distribution of the residue. The award sought to distribute the assets of the partnership firm after settlement of accounts on dissolution. This court took the view that the property falling to the share of the partner on distribution of the residue would nat ..... X X X X Extracts X X X X X X X X Extracts X X X X
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