1921 JTR(SC) 51
1921 AIR(PC) 137
Privy Council
Ameer Ali, Shaw , Justice Viscount Cave, JJ.
Gordhandas Kessowji, -Appellant
Versus
Champsey Dossa and others -Resopndent
Privy Council Appeal No. 143 of 1919
Decided On : 17-06-1921
A partnership formed by a salt manufacture licensee for profit-sharing, where the licensee remains the manufacturer, does not contravene the statutory restrictions of the Salt Act.
Act
Referred
:BOMBAY SALT ACT: S.11
CONTRACT ACT
: S.23
(A) Salt Act (II of 1890) - Section 11 - Licensee of salt manufacture - Partnership for profit sharing - Whether entering into partnership contravenes statutory provisions - Held, it does not.
Facts of the case:
A licensee of salt manufacture entered into a partnership with other persons to share profits. While the manufacture was conducted by the licensee, the other partners performed duties related to production and sale. Following a dispute, a partner sought an injunction to prevent exclusion from the partnership or, alternatively, the dissolution of the partnership.
Findings of Court:
The court found no reason to doubt the correctness of the lower court's judgment which held that the partnership did not contravene the relevant statutory provisions.
Issues: Whether the formation of a partnership by a licensee of salt manufacture had the effect of contravening the provisions of the Salt Act.
Ratio Decidendi: The court affirmed the lower court's decision, noting that the partnership arrangement did not violate the statutory restrictions and that the precedents cited by the appellant were inapplicable as they pertained to different Acts.
Result: Appeal dismissed.
Facts of the case:
A licensee of salt manufacture entered into a partnership with other persons to share profits. While the manufacture was conducted by the licensee, the other partners performed duties related to production and sale. Following a dispute, a partner sought an injunction to prevent exclusion from the partnership or, alternatively, the dissolution of the partnership.
Findings of Court:
The court found no reason to doubt the correctness of the lower court's judgment which held that the partnership did not contravene the relevant statutory provisions.
Issues: Whether the formation of a partnership by a licensee of salt manufacture had the effect of contravening the provisions of the Salt Act.
Ratio Decidendi: The court affirmed the lower court's decision, noting that the partnership arrangement did not violate the statutory restrictions and that the precedents cited by the appellant were inapplicable as they pertained to different Acts.
Result: Appeal dismissed.
T.L. Wilson and Co., G.C. Fan, E.B. Raikes, Up. John, Kenworthy Brown, L. de Gvuyther
FACTS :-
A licensee of salt manufacture entered into partnership with certain other persons sharing in the profits thereof. The other partners used to perform certain duties in connection with the production and sale of the salt, though the manufacture was done by the licensee himself. Disputes having arisen, one of the partners sued for injunction against other partners restraining them from excluding plaintiff from a share in the partnership or in the alternative for dissolution. The important question involved was whether entering into partnership by the licensee had the effect of contravening the provisions of BOMBAY SALT ACT (II of 1890), Section 11 . The Court held that it did not so contravene and allowed the suit to proceed, from the result whereof the present appeal has been filed
Viscount Cave:-
This case has been fully argued, but no reason has been adduced which induces their Lordships to doubt the correctness of the judgment appealed from.
With regard to the cases cited, it is sufficient to say that they arose under quite different Acts, and have no application to the present case.
Their Lordships will therefore humbly advise His Majesty that the appeal be dismissed with costs.
Appeal dismissed.