Sachin Jaiswal vs M/s Hotel Alka Raje & Other

Court

Supreme Court of India

Date

27 February 2025

Case No.

Civil Appeal No. 3269 of 2025

Result

Dismissed

Bench

Sudhanshu Dhulia, Ahsanuddin Amanullah

Citation

[2025] 2 S.C.R. 1396 : 2025 INSC 275

Acts & Sections

Partnership Act, 1932

Issue for consideration

Whether the High Court was justified in holding that the Hotel constructed by the late father of the appellant on the property which he had bought in 1965, was his contribution to the firm and thus, the same was brought on to the stock of the firm and would become the ‘property of the firm’ as per Section 14, Partnership Act.

Headnote

Partnership Act, 1932 – s.14 – Interpretation – Late father of the appellant, if had brought the property in question to the stock of the partnership firm as his contribution to the same: Held: s.14 enables a partner to bring a property which belongs to him, by the ‘evidence of his intention’ to make it a property of the firm and to do so, no formal document or agreement is necessary – In the present case, the late father of the appellant first acquired the property in the year 1965 and then after constituting the partnership firm (respondent No.1) in 1972, he jointly constructed a building over the property with his brother and partner, pursuant to which the building was constructed which was to run as a hotel – Thus, the late father of the appellant had brought the property in question to the stock of the partnership firm as his contribution to the same – The property had become the firm’s property at the very moment he started constructing the hotel on his land after constituting the partnership – The evidence of his intention to contribute the land and the building of Hotel is clear – Order of the High Court not interfered with. [Paras 14, 15, 17]

Judgment Sudhanshu Dhulia, J. 1. Leave granted. 2. The appellant before this court has challenged the order dated 09.03.2022 passed by the High Court of Judicature at Allahabad, in First Appeal No. 60/2021 by which the High Court has disposed of the First Appeal preferred by the appellant with certain clarifications. 3. Briefly, the facts necessary for our consideration are that father of the appellant, late Bhairo Prasad Jaiswal had vide registered sale deed dated 01.10.1965 purchased a plot of land admeasuring 4 bigha 10 biswa 5 biswansi situated at Mohalla Rikabganj, Faizabad. Then, in

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