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Umamkeswara Mudaly and ors. Vs. Muniswami Mudaly and ors. - Court Judgment

LegalCrystal Citation
CourtChennai
Decided On
Judge
Reported in94Ind.Cas.306
AppellantUmamkeswara Mudaly and ors.
RespondentMuniswami Mudaly and ors.
Cases ReferredBarfield v. Loughborough
Excerpt:
partnership, dissolution of - taking of accounts--interest on monies drawn by partner, whether allowable--interest on advances, calculation of. - .....thing which it is not the practice to allow unless it is so provided in the deed. there is clear authority in the case of meymott v. meymott (1862) 54 e.r. 1211 : 31 beav. 445 : 32 l.j.ch 218 : 9 jur.(n.s.) 426 : 135 r.r. 515. the other thing he has allowed is interest on certain advances up to the date not of the dissolution which had been effected by the preliminary decree but right up to the date of final decree. for that again there is clear english authority, barfield v. loughborough (1873) 8 ch. 1 : 42 l.j.ch.l79 : 27 l.t. 499 : 21 w.r. 86 that such allowances cannot be made. the decree will be amended by disallowing those two items, interest at 9 per cent. being allowed up to the date of the preliminary decree. after that date the usual rate of 6 per cent. interest will be.....
Judgment:

1. In this case the learned Judge in making his final decree in a suit for dissolution of partnership has made two errors in taking the accounts. In the first 'place he has allowed interest on monies drawn by a partner from the partnership funds--be it capital or interest, it does not matter--a thing which it is not the practice to allow unless it is so provided in the deed. There is clear authority in the case of Meymott v. Meymott (1862) 54 E.R. 1211 : 31 Beav. 445 : 32 L.J.Ch 218 : 9 Jur.(N.S.) 426 : 135 R.R. 515. The other thing he has allowed is interest on certain advances up to the date not of the dissolution which had been effected by the preliminary decree but right up to the date of final decree. For that again there is clear English authority, Barfield v. Loughborough (1873) 8 Ch. 1 : 42 L.J.Ch.l79 : 27 L.T. 499 : 21 W.R. 86 that such allowances cannot be made. The decree will be amended by disallowing those two items, interest at 9 per cent. being allowed up to the date of the preliminary decree. After that date the usual rate of 6 per cent. interest will be allowed.


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