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PETITIONER: CHENNURU GAVARARAJU CHETTY
Vs.
RESPONDENT: CHENNURU SILARAMAMURTY CHETTY AND OTHERS
DATE OF JUDGMENT: 06/10/1958
BENCH: SINHA, BHUVNESHWAR P. BENCH: SINHA, BHUVNESHWAR P. IMAM, SYED JAFFER KAPUR, J.L.
CITATION: 1959 AIR 190 1959 SCR Supl. (1) 73
ACT: Lease, Renewal of-Manufacture of salt-Lessees, if fiduciaries of quondam partners-Constructive trust-Test- Presumption--Indian Trusts Act, 1882 (II of 1882), ss. 88, 90--Madras Salt Act, 1889 (Mad. 4 of 1889).
HEADNOTE: The appellant, defendant No. 1 in the suit, from which the appeal arises, and the father of defendants 2 to 7, as the highest bidders, obtained a seventeen years’ lease of a salt factory from the Government and the license to manufacture and sell salt under the Madras Salt Act, 1889. They entered into a partnership with the plaintiffs to carry on their business for the period of the lease. On the death of their father, defendants 2 to 7 were admitted into the partnership. The partnership agreement made no provision for the continuation of the partnership on expiry of the lease or for the acquisition of a fresh lease on behalf of the partnership. The lease expired, the license came to an end and the partnership stood automatically dissolved. The Government changed its old policy of granting leases to the highest bidders and adopted...