Kerala High Court on 6 August 2021, held that priests and nuns who work as teachers for educational institutions are liable to pay TDS (Tax Deduction at Source). This judgment was made scratching about 50 writ appeals.

The history of this issue can be dated back to 1944 when it was observed that all the priests and nuns are exempted from paying the TDS even if they work for government-aided institutions keeping in mind their poverty but this was changed in 2014. In 2014, it was ordered that the priests and nuns have to pay the TDS if they wish to work outside their religious congregations after which several appeals were filed in the Honorable High Court of Kerala where these appeals were dismissed by the Single Judge Bench and the appellants further went to the Honorable High Court of Kerala Division Judge Bench. The judges of the division bench were Justice SV Bhatti and Justice Bechu Kurian Thomas.

The Court held that the appeals only about the employees of the government and whose TDS is deducted are maintainable and not the ones where nuns and priests worked in their congregations and hence maximum pleas were scratched. It violates section 129 of the Income Tax Act if the TDS is not deducted from the employees of the educational institution irrespective of whether the salary is donated or utilized for personal use. The concept of civil death is not known and irrelevant to the Income Tax Act when argued that the priests and nuns live a life of poverty and in the end lead to civil death. The right to practice and profess any religion guaranteed under Article 25 of the Indian Constitution does not provide any immunity from taxation as it is subject to a legitimate law of the land.

Thus, the court once again proved that although the Fundamental Rights are guaranteed to everyone they are subject to reasonable restrictions by the state because of the public. Hence, the TDS system is non-violative of Article 25 of the Indian Constitution.

-Report by PREYANSI ANAND DESAI

-Report by GURPREET SINGH


This case dealt with a criminal revision petition filed by petitioners against an order of the trial Court that discharged the respondent, against whom an FIR was filed for causing mischief by fire.

FACTS OF THE CASE:

An FIR bearing number 03/2015 was registered on 8.1.15, alleging that the respondent on the intervening night of 7/8 January, around 2 am had set on fire 2 shops, due to a dispute between the complainant and respondent that arose regarding retainment of those 2 shops. The Investigation officer recorded statements under 161 C.R.P.C and presented the final report before the court indicating the respondent under section 436 of RPC (Ranbir Penal Code). The Trial Court after persuing the final report discharged the respondent by exercising power under 268 CRPC. The Court while discharging the respondent placed reliance on the ground that none of the witnesses whose statements were recorded under Section 161 C.R.P.C have stated anything against the respondent, that connects him to the crime. Aggrieved by this order of the trial court, petitioners approached the High Court through criminal revision.

ARGUMENTS IN COURT

  • The Petitioners contended that the trial court had erred in its decision to discharge the respondent when from the testimony of the witnesses, the involvement of the respondent can be made out.
  • The respondents contended that the offence under section 436 RPC can be made out only when mischief by fire is committed to destroying a dwelling house and therefore this offence cannot be made out in the case of shops.

DECISION OF THE COURT:

The Court agreed with the contention of the petitioners and remanded the present case to the trial court to reconsider the framing of charges in respect of the decision rendered by this court.

REASONING

The Court after examining the statements of witnesses concluded that the witnesses have clearly stated that the respondent set ablaze the shops in the picture. Further circumstantial evidence of him being seen with a mashal point towards him being involved in the crime. The Court attributed motive to the respondent as there was an ongoing dispute between the respondent and the complainant regarding the possession of the shops. The Court relied on Sajjan Kumar v Union of India, where it was held that the court must apply its judicial mind on the material placed on record and it must be satisfied regarding the possibility of offence being committed by the accused to conclude that prima facie there is a possibility of him being involved. Further, the Court negative the contention of the respondent and ruled that on a bare reading of section 436 of R.P.C it does apply to places that are the custodian of property and the shop’s stored goods of the complainant, making them custodian of the property. Therefore section 436 shall apply in this present case.

About Us

JPMorgan Chase & Co., one of the oldest financial institutions, offers innovative financial solutions to millions of consumers, small businesses and many of the world’s most prominent corporate, institutional and government clients under the J.P. Morgan and Chase brands. Our history spans over 200 years and today we are a leader in investment banking, consumer and small business banking, commercial banking, financial transaction processing and asset management.

We recognize that our people are our strength and the diverse talents they bring to our global workforce are directly linked to our success. We are an equal opportunity employer and place a high value on diversity and inclusion at our company. We do not discriminate on the basis of any protected attribute, including race, religion, color, national origin, gender, sexual orientation, gender identity, gender expression, age, marital or veteran status, pregnancy or disability, or any other basis protected under applicable law. In accordance with applicable law, we make reasonable accommodations for applicants’ and employees’ religious practices and beliefs, as well as any mental health or physical disability needs.

About the Team

The Corporate & Investment Bank is a global leader across investment banking, wholesale payments, markets and securities services. The world’s most important corporations, governments and institutions entrust us with their business in more than 100 countries. We provide strategic advice, raise capital, manage risk and extend liquidity in markets around the world.

Job Description

Corporate & Investment Bank – WHOLESALE PAYMENTS

LEGAL COUNSEL

The WP business operates across multiple countries and its principal activities include  providing (i) cash and liquidity management products and services to local and multi-national corporations, bank and non-bank financial institutions, and government bodies, (ii) merchant acquiring and allied services, and (iii) (a) traditional trade (import/export documentary collections and letters of credit, guarantees/SBLCs) facilities and services, (b) structured trade, receivables purchases and supply chain finance facilities, and (c) trade facilities such as export and import LC financing, draft discounting, pre-export/payables/receivables financing and export credit agency backed long-term lending.

Location and Reporting Lines

The position is in Mumbai, at J.P. Morgan’s Corporate Centre (“MCC”), reporting to a team lead at the MCC with functional responsibility to the APAC and EMEA Heads of WP Transactions Legal in Singapore and London, respectively.

Responsibilities

As a member of the Global Wholesale Payments Legal team, the role will primarily comprise:

·               providing legal support and advice to the Wholesale Payments businesses across all APAC and EMEA jurisdictions on a wide range of client-related transactional matters including reviewing, negotiating, drafting and finalising contracts with the Bank’s borrowers, customers and partner banks based on internal guidance and standard operating procedures;

·               liaising and coordinating with local, regional and global legal counter-parts, and functional and business partners on legal issues including cross-border and cross-business activities and projects; and

·               instructing and working with outside counsel.

Candidate Qualifications

·               Qualified lawyer with 3-5 years of post-qualification legal experience;

·               Strong drafting, negotiation and legal analytical skills;

·               Ability to communicate well and work in a cross-functional, cross-jurisdiction, team to achieve common goals; and

·               Ability to work under pressure, prioritize and respond to business needs and goals.

Experience in cash management, liquidity, e-commerce, financial market infrastructure, credit transactions, supply chain finance, factoring, receivables purchase, ICC Uniform Practices and/or merchant acquiring will be an advantage.

For more details visit-

https://jpmc.fa.oraclecloud.com/hcmUI/CandidateExperience/en/sites/CX_1001/job/210147267/?utm_medium=jobshare&src=LinkedIn_JPMC

For regular updates, join us:

WhatsApp Group:

https://chat.whatsapp.com/GRdQLsHRwmB7QVRmS3WKtP

Telegram:

https://t.me/lexpeeps

LinkedIn:

https://www.linkedin.com/company/lexpeeps-in-lexpeeps-pvt-ltd

About the company:

Freshworks makes it fast and easy for businesses to delight their customers and employees. We do this by taking a fresh approach to building and delivering software that is affordable, quick to implement, and designed for the end-user. More than 50,000 companies — from startups to public companies — around the world use Freshworks software-as-a-service to enable a better customer experience (CRM) and employee experience (ITSM, HRSM).

Headquartered in San Mateo, California, Freshworks has a dedicated team operating from 13 global locations to serve customers, including American Express, Sony, Vice Media, TaylorMade, Sotheby’s, Stitchfix, OfficeMax, Multichoice, Delivery Hero, ITV, and Klarna.  

Freshworks transforms the way world-class organizations collaborate with customers and co-workers. The suite includes Freshdesk (omnichannel customer support), Freshsales (sales automation), Freshmarketer (marketing automation), Freshservice (IT service desk), Freshteam (HR management system).

About the Role :

Freshworks is seeking a highly-motivated and enterprising counsel to join the Freshworks Legal Team. You will oversee compliance at all levels and set up good governance practices for Freshworks.

Responsibilities :

·        Develop and implement company policies and regulations to drive good corporate governance practices across the legal entities and ensure compliance to the same.

·        Oversee all business operations relating to compliance including policies, investments, and procedures.

·       Advise on employment-related legislation, from time to time.  

·        Design and monitor control systems to deal with violations of legal rules and internal policies.

·        Regularly assess the efficiency of control systems and recommend effective improvements.

·        Review and evaluate company procedures and reports to identify hidden risks or common issues.

·        Coordinate with different department managers to review all departmental compliance policies.

·        Perform periodic audits on company procedures and processes.

·        Lead employee training sessions on legal and compliance issues.

·        Supervise compliance through online tools.

·        Provides research, information, counsel, and guidance on straightforward legal questions or issues.

·        Monitor and advice on new developments in Indian laws or regulations applicable to Freshworks compliance obligations

Desired Candidate Profile :

·        Bachelor’s degree in law with demonstrated excellent academic performance.

·        8-10 years of experience as a transactional and compliance attorney in a reputable business law firm, or in-house experience with the legal department preferably in a multi-national company.

·        Strong knowledge and understanding of employment laws and company secretarial compliances.

·        Strong knowledge of basic principles of contract drafting, review and negotiation with an ability to provide practical and well-reasoned solutions.

·        Strong communication skills and fluency in English (both written and oral).

·        Good interpersonal and stakeholder management skills.

·        Must be fluent in MS office and comfortable with new technology.

·        Responsive and follows through on commitments.

Link to Apply

https://careers.freshworks.com/jobs/4-mLR0jDubUL/manager-compliance-legal-remote#applicant-form

For regular updates, join us:

WhatsApp Group:

https://chat.whatsapp.com/GRdQLsHRwmB7QVRmS3WKtP

Telegram:

https://t.me/lexpeeps

LinkedIn:

https://www.linkedin.com/company/lexpeeps-in-lexpeeps-pvt-ltd

About Zetwerk

Zetwerk is a global manufacturing network that maximizes efficiency, quality and value. Its manufacturing capabilities help customers reduce costs of existing and new production parts, minimize the number of suppliers and execute production faster. Founded in December 2017, Zetwerk helps take digital designs into physical manifestations, from simple items like pipes to complex products like aircraft engine parts at its captive and partner facilities. With a virtually unlimited range of production capacities and capabilities, Zetwerk makes anything possible: any specification, scale, category or geography. Zetwerk ensures the right match for specifications at competitive costs and lead times. It offers quality monitoring through indigenously developed technology that provides end-to-end transparency from purchase orders to delivery, eliminating uncertainties around quality, visibility, reliability, and under-utilized capacities.

Zetwerk has delivered more than 1000 projects in over 15 countries to close to 300 customers so far. It is backed by marquee investors such as Accel Partners, Sequoia Capital, Lightspeed, Greenoaks and Kae Capital who have together invested close to $200 million in the company.

Why Zetwerk

A company that’s changing the way manufacturing is done needs game changers to shape the future. At Zetwerk, our job is to help you excel in your career and make an Impact. We offer you an environment to create a unique career journey, opportunities to grow your ambition and an inclusive culture to help you thrive. We encourage innovation through collaboration and connect you to leaders who help you go beyond. We deliver the best for our people so that they can deliver the best for our customers. It’s that simple. It’s Zetwerk.

Job Brief & Responsibilities

The Senior Legal Counsel will assist the Head Legal and provide legal support to all aspects of Zetwerk businesses in India and its group companies in different locations across India and abroad – ranging from commercial, manufacturing, compliance, operations, procurement, finance and corporate activities. He / She will be responsible for legal drafting al kinds of commercial contracts, corporate advisory, compliance, litigation and M&A.

  • This position reports directly to Head Legal.
  • This role is a individual contributor role which may in future turn into a managerial position.Support Head Legal on strategic M&A activities.
  • Support HOD on strategic M&A activities.
  • Proactively safeguard company interest by having clear risk mitigation strategies after identifying and prioritizing legal risks, emerging regulatory or other issues and threats that may affect Zetwerk business.Advise on contracts, understanding prevailing legal risks and liabilities associated with existing contracts and implementing mitigation strategies for future.
  • Implement a continuous improvement process for existing contracts on a quarterly basis working with internal stakeholders
  • Understanding issues from internal stakeholders and providing practical solutions within short timelines.
    Draft and negotiate all kinds of commercial contracts, SOPs, and Guidelines for internal clients.
  • Provide legal opinions, legal interpretations and recommendations on issues related to labour & employment laws, litigation, commercial laws, transfer of property, intellectual property etc.
  • Manage disputes/litigation with third parties.
  • Keeping up with current changes on all relevant areas of laws and contributing to the enhancement of the knowledge base withing the legal function.
  • Provide training to internal clients on legal basics, compliance, antitrust and general corporate.
  • Manage external counsels.
  • Periodically update business and senior management on the progress of all critical issues

Key Requirements

  • 9+ years of experience as an in-house counsel. Prior litigation and law firm experience would be an added advantage.
  • Qualified LLB, preferably from a Tier 1 law school.
  • Ability to work independently with little or no supervision
  • Experience in managing a team is a plus
  • Good drafting skills, having hands on experience on M&A transaction, Contracts and Litigations.
  • Demonstrated ability to create/provide proactive strategies/solutions for internal clients
  • Capacity to handle complexity and manage priorities within agreed timelines
  • Strong professional ethics
  • Team player
  • Willingness to be “hands-on”
  • Strong communication and interpersonal skills – Capacity to handle multicultural environment and people at all levels of the organization
  • Above all, having a lot of patience and perseverance to continue striving for excellence and achieving expected results

Link to Apply

https://www.linkedin.com/jobs/view/2672182789

For regular updates, join us:

WhatsApp Group:

https://chat.whatsapp.com/GRdQLsHRwmB7QVRmS3WKtP

Telegram:

https://t.me/lexpeeps

LinkedIn:

https://www.linkedin.com/company/lexpeeps-in-lexpeeps-pvt-ltd

LeadSquared (www.leadsquared.com) is looking for Manager – Company Secretary & Legal Counsel who will lead the Secretarial and Legal Compliance process for Company. This person will work very closely with Founders / CFO in ensuring legal compliance with Companies Act, FEMA/ RBI, labor-related laws, finalization of legal agreements etc. This person will be responsible for the overall supervision and monitoring of legal compliance within the company by different functions. He/She will be playing an advisory role to internal teams on legal aspects.

About LeadSquared

LeadSquared is a leading Sales Execution and Marketing Automation platform used by over 1000 businesses worldwide to automate their New Sales, Renewals/Upsells and Field Sales processes. Customers control the buying process in the digital economy. Traditional CRM and marketing systems are old schools in serving the needs of high-velocity sales processes. LeadSquared offers a next-generation, AI-enabled automation process engine that helps organizations automate, analyze and optimize their sales and marketing processes.

  • LeadSquared has been recognized as one of the fastest-growing companies in the world
  • Among Top 50 fastest growing tech companies in India as per Deloitte Fast 50 programs
  • Frost and Sullivan’s 2019 Marketing Automation Company of the Year award
  • Among Top 100 fastest growing companies in FT 1000: High-Growth Companies Asia-Pacific
  • Listed as Top Rates Product on G2Crowd, GetApp and TrustRadius
  • LeadSquared is backed by institutional investors like Gaja Capital, Stakeboat Capital and angels like Jyoti Bansal

Roles & Responsibilities

  • Preparation of Notices, Agenda & Minutes for Board and Shareholders Meetings
  • Maintenance of Statutory Registers, Filings with ROC/RD/Other relevant authorities
  • Handling Due diligence and legal aspects of raising funds from investors.
  • Other tasks/compliances under the Companies Act. Compliance with all the applicable laws like Motor vehicle acts, labor law, FEMA, FSSAI, etc., and keeping track of overall compliance status.
  • Drafting and Review of Agreements/Other Legal documents and Maintenance of signed agreements & keeping track of their validity.
  • Liaison with statutory authorities, external consultants, lawyers etc.
  • Handling of Litigations if required.
  • Monthly report to management on status of compliances.
  • Monitoring notices received from statutory authorities and other parties and ensuring appropriate action.
  • Advising management and internal teams on applicable laws and amendments from

Eligibility

  • LLB from top-tier law college and CS (first attempt at all levels).
  • Experience of 5 – 10 years in a top-tier law firm or CS firm.
  • Should have participated in Due Diligence/fundraising for companies.
  • Ability to work under pressure with limited resources and tight timelines.
  • Excellent communication and Stakeholder Management is an essential skill for this role.
  • Experience of working in a listed company and handling IPO would be added advantage

Link to Apply:

https://www.linkedin.com/jobs/view/2671458202

For regular updates, join us:

WhatsApp Group:

https://chat.whatsapp.com/GRdQLsHRwmB7QVRmS3WKtP

Telegram:

https://t.me/lexpeeps

LinkedIn:

https://www.linkedin.com/company/lexpeeps-in-lexpeeps-pvt-ltd

About Valuepitch

Valuepitch started in early 2008 with an aim to build a path-breaking platform for data mining and providing quality background checks. We build technologies and processes for data extraction, information aggregation and media analytics. The capabilities are built in-house with interactions of specialists in this field. We explored various areas with industry centric and non-industry specific products over our course of business.

Our Company uses technology and massive amount of legal data available in the public domain, analysing thousands of data points from various data sources to assess the criminal background/creditworthiness of the individual and entity. We have curated products for HR – BGV companies, Banking/Fin-tech companies, Law firms and other agencies.

Our Product line comprises of various products like Verify24x7, INSTACHECK (IPAP and PMLA), Related Party Search, Court checker, Headline Search, etc. customised as per the industry and customer requirements.

We have rigorously tested our products and arrived at desired conclusions. As a result, we are having good count of proof of concepts, demos and best-in-industry products to present. Now, we believe that we are ready to storm the Indian markets with our robust technology driven search engine and highly updated legal database.

Job Description

Reading the judgements, order copies and cause lists of the cases. – Understanding each case and Analysing the criticality of the cases assigned.

  • Complete Research on the subjects and cases assigned. – Reading and writing synopsis or description of the analysis. – Managing additional activities related to court checks and other verifications.record
  • Coordinating with the extended team effortlessly for the fulfilment of the tasks.

Requirements:

  1. The candidate must be a LLB- degree holder or a Final year Law student.
  1. The candidate must have abreast legal knowledge and should be thorough with common acts and sections.
  2. The candidate must have excellent verbal and written communication skills.
  1. The candidate must have brilliant Drafting and Interpretation skills

5.. The candidate must be available for a 6-month full-time internship

6. The candidate must have an eye for detail and the ability to identify risks

Job Details

Employment Internship

How to Apply?

https://www.linkedin.com/jobs/view/2675523314

For regular updates, join us:

WhatsApp Group:

https://chat.whatsapp.com/GRdQLsHRwmB7QVRmS3WKtP

Telegram:

https://t.me/lexpeeps

LinkedIn:

https://www.linkedin.com/company/lexpeeps-in-lexpeeps-pvt-ltd

About Kaizn Hr

Kaizn Hr is a recruitment firm based in west delhi and we provide end to end recruitment solution in various sectors including IT/telecom/Travel/law firms and we provide middle to top management staff to reputed clients from pan India specialized in doing hiring for niche skills. We are experts with a proven track record at sectors or positions like Technical, Marketing and Sales, Executive Assistant, legal hiring for middle & senior level management. Since the beginning of our journey in 2008 Kaizn HR has made a mark as one of the most prominent recruitment consultant in India

Job Description

We have openings for general corporate and transaction lawyer with a top tier law firm

Location

Delhi

Hiring for general corporate and transaction lawyer

Law firm experience is must

Kindly don’t reapply if you have already applied in the recent past

Level:

Senior Associate

Minimum experience :

3-7 years PQE with a reputed law

firm in corporate commercial transactions.

should have a strong law firm background

should have strong drafting skills

should be law graduate/Pg from a premier institute

Should posses good spoken and written English.

Job Details

Employment

Full-time

How to Apply?

If interested kindly contact us at

ankush@kaiznhr.com

For regular updates, join us:

WhatsApp Group:

https://chat.whatsapp.com/GRdQLsHRwmB7QVRmS3WKtP

Telegram:

https://t.me/lexpeeps

LinkedIn:

https://www.linkedin.com/company/lexpeeps-in-lexpeeps-pvt-ltd

Introduction 

The Indian constitution was drafted in the mid-twentieth century which gave an advantage to constitutional makers, in so far as they could take cognizance of the various constitutional processes operating in different countries of the world and thus draw upon a rich fund of human experience, wisdom, heritage, and traditions. The emergency provisions are taken from the Weimar Constitution of Germany. After the second world war, the allied forces to safeguard their troops still stationed in Germany asked for the formation of emergency provisions.

Similarities between German and Indian provisions

To understand the reason for taking emergency provisions from Germany we first need to establish what are the provisions in particular taken from Germany. Firstly, like India Germany also has 2 houses namely the Bundestag and Bundesrat, secondly like state emergency in India there is an internal emergency in Germany and the national emergency is common in both countries. The situation of both the countries are not similar before the proclamation of emergency like for example India follows common law and Germany is a civil law country, however, once the emergency is proclaimed both countries place similar restrictions on their citizens and this is an important factor by which one can say emergency provisions are taken from Germany, It is not the before effect that matches between both the countries but it is what happens after the proclamation of emergency that matches. 

One can argue that the aftereffects of emergency are similar in all countries worldwide, but the statement holds negligible truth. Like in countries where dictatorship exists fundamental rights are also suspended like in the case of North Korea, Turkey, Russia. Where the top leader holds absolute power to change the terms during an emergency. In recent times there is an example of Myanmar where the military threw out the democratically elected government led by Au Su Khi and imposed a martial rule suspending all the rights of the citizens. Even the basic right to life is hindered and the military explicitly kills the protesting citizens. Other provisions from Germany include suspension of fundamental rights during an emergency, apart from this all the other provisions too are from the Weimar constitution.

Discussions by the drafting committee 

While discussing the draft Art. 275 (Art. 352) that dealt with the promulgation of emergency H.V. Kamath warned the assembly about the German experience where Hitler used emergency provisions to establish a dictatorship, however, Hitler invoked many of the provisions of the Weimar constitution such as Art. 48 of the Weimar constitution that provided for the president to notify all the actions to the parliament, this provision is missing in the Indian constitution as observed by H.V. Kamath. 

An interesting fact emerged in this course is that the idea of a financial emergency was not taken from Germany, but it is from the American constitution which was implemented during the great depression as observed by Dr. B.R. Ambedkar. 

During the debate between our constitutional makers for the emergency provisions, a total of 12 countries were taken into consideration where the UK was most referred to followed by the USA and Germany. If we say the emergency provisions are taken from Germany does not mean the whole of emergency provisions are from the German texts but it means that the national emergency and the state emergency provisions are only taken from the German texts.

Reason for the adoption of emergency provisions from Germany

Germany was the most experienced country among all in terms of dealing with armed rebellion, civil war, and internal security and because Hitler exploited the country’s emergency provisions a system of checks and balances was established by the allied countries in Germany to prevent any such chances of dictatorship. 

The revised provisions and the amendments suggested earlier implemented in the year 1968 in the Federal Republic of Germany constitution made it the most favorable constitution to take emergency provisions from. Also, these emergency provisions were accepted and appreciated by all the allied countries around the world so it was best suited for India to take a reference from this nation. Under any form of government, a state of national emergency is considered as “hour of the executive” where the executives can misuse the authority, this was a matter of debate in the Federal Republic of Germany since the mid-1950s which Germany with numerous debates in their little parliament had resolved. 

This also gives our constitutional thinkers a reason to refer to the German text as this stand was still unclear in most of the countries like the US. As emergency is such a sensitive matter only nations who had ample experience in dealing with it should be taken into consideration and Germany was one such country. Also, after the partition of India and Pakistan based on religion, chances of civil war could arise in India which the German people had already experienced, so it made sense to our constitution-makers to take ideas from Germany to tackle the situation if it arises. 

The article has been written by Aakarsh Chandranahu, a student at Alliance School of Law.

The article has been edited by Shubham Yadav, a 4th year law student at Banasthali Vidyapith, Jaipur.

Latest Posts


Archives

Case Number:

Civil Appeal No. 3717 of 1982, arising out of SLP (Civil) No. 8056 of 1981

Case Citation:

(1983) 1 SCC 22 : 1983 ALJ 488 : AIR 1983 SC 523

Bench:

D.A. Desai and R.B. Misra 

Decided On:

18 November 1982

Section:

Section 32(1)(b) of the Indian Partnership Act, 1932

Section 32 of the Indian Partnership Act, 1932 deals with the retirement of a partner. Section 32(1)(b) has provided for the retirement of a partner in accordance with an agreement. According to this, a partner may retire if there is an express agreement between the parties for the same.

Facts of the Case

The plaintiff-appellant had filed a suit in the Trial Court for the dissolution of the partnership firm and also for the rendition of the accounts of “Shyam Bricketing Udyog”. The firm was situated in Etah in the state of Uttar Pradesh. which was also the principal place of business of the firm. The trial court granted the relief of dissolution effective from 23 November 1976 and also passed the decision in favor of rendition of accounts. The respondents-defendants were not pleased by this and approached the High Court. The High Court allowed the suit and set aside the concurrent findings. The High Court dismissed the suit of the plaintiff along with the costs. Thus this appeal is by special leave.  

The plaintiff had filed a suit for the dissolution of the firm and rendition of accounts. He alleged that the partnership was at will and that the firm had been dissolved on 23 November 1976 by notice. The respondents argued that the partnership wasn’t, in fact, a partnership at will. 

Issues before the High Court

  1. Whether the partnership was a partnership at will
  2. Whether the respondent (now appellant) was entitled to retirement or dissolution of the firm itself. 

 After listening to the arguments of both sides and after a thorough discussion, the High Court held that the partnership wasn’t a partnership at will. This court shall not take up the first contention and only take up the second contention.

The present issue before the Court

Whether the appellant is entitled to retirement or the dissolution of the partnership itself.

The ratio of the Bench

The two-judge bench of the Supreme Court did a thorough reading of Clauses 18 and 20 of the instrument of Partnership. The bench also discussed Section 32(1) of the same. Upon reading Clauses 18 and 20 the court observed that a partner can in fact disassociate from the firm. In the same way, Section 32(1)(b) provides for the retirement of a partner in accordance with the terms of the partnership The bench held that the High Court made an error and did not view the plaintiff’s contention from the correct angle. The High Court went into the appreciation of the contention as a breach of contract and did not go into the absolute right to retire from a partnership conferred by Clause 18. 

The court upon a combined reading of the Clauses 18 and 20 observed that there was no bar on the right to the retirement of a partner within one year of the commencement of the partnership and that there was only a consequence to such an action. The consequence is that the capital shall not be refunded until the expiry of the period of one year.

The decision of the Court

The two-judge bench of the Supreme Court decided that the plaintiff had retired from the partnership and that such retirement is effective from the day of the institution of the suit. 

They held that the partnership is not dissolved and that the accounts shall be taken up to and inclusive of the day which precedes the institution of the suit.

The case analysis has been done by Om Gupta, a first-year law student pursuing BBA-LLB from the University School of Law and Legal Studies.

The case analysis has been edited by Shubham Yadav, a 4th year Law student at Banasthali Vidyapith, Jaipur.

Latest Posts


Archives