VidhiSangh

Supreme Court of India · 26/10/2021

V. ANANTHA RAJU & ANR versus T.M. NARASIMHAN & ORS.

[2021] 11 S.C.R. 860 · 2021 INSC 669

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Summary

The Court recognised the two plaintiffs’ combined 50% partnership share under the admitted 1995 reconstitution deed, rejecting the claim that its express shares were recorded by mistake. The party alleging mistake bore the burden of proving it; the later deed omitted the earlier capital-contribution contingency and its allocation reflected a coherent negotiated arrangement. The plaintiffs’ expulsion from 18 June 2004 was nevertheless upheld under an earlier contractual clause that remained operative. The accounting directions were otherwise maintained.

Issues

  1. Whether the admitted reconstitution deed established a combined 50% share despite an asserted mistake and disputed earlier capital contribution.
  2. Whether the later deed displaced the earlier contractual power of expulsion.

Provisions considered

Held

Result

Appeal partly allowed without costs. Decree modified to declare plaintiffs’ combined 50% profit-and-loss share until 18 June 2004; expulsion from that date and remaining trial-court directions maintained. Pending applications disposed of.

Judgment PDF: Supreme Court of India, [2021] 11 S.C.R. 860.