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of <h1>Partnership Deed Declared Illegal, Revision Petition Allowed</h1> The court found the partnership deed illegal due to the unauthorized transfer of the route permit, rendering the suit for dissolution and rendition of ... - Issues Involved:1. Legality of the partnership deed involving the transfer of a route permit.2. Maintainability of the suit for dissolution of partnership and rendition of accounts.3. Validity of the transfer of the truck and its route permit under the Motor Vehicles Act.Detailed Analysis:1. Legality of the Partnership Deed Involving the Transfer of a Route Permit:The primary issue revolves around whether the partnership deed, which included the transfer of a route permit, is legal under the Motor Vehicles Act. The partnership deed dated 3rd January 1969, explicitly stated that the truck and its route permit were to be shared among the partners, with the defendant initially owning the truck and permit entirely. The defendant argued that under Sections 42 and 59 of the Motor Vehicles Act, the transfer of a route permit without the permission of the Transport Authority is prohibited. The court noted that Section 59 explicitly states that a permit shall not be transferable from one person to another except with the permission of the Transport Authority. Since the partnership deed included the transfer of 2/3rd of the permit without such permission, it was deemed illegal.2. Maintainability of the Suit for Dissolution of Partnership and Rendition of Accounts:The defendant contended that the suit for dissolution of partnership and rendition of accounts was not maintainable due to the illegality of the partnership deed. The court examined various precedents, including AIR 1963 Mad 413, which held that partnerships involving the transfer of permits without proper authorization are illegal and unenforceable. The court also considered the argument that the partnership was only an agreement to seek permission for the transfer. However, it concluded that the partnership deed effectively transferred ownership of the truck and permit from 1st January 1969, without the necessary permission, making the partnership illegal and the suit unsustainable.3. Validity of the Transfer of the Truck and Its Route Permit Under the Motor Vehicles Act:The court scrutinized the terms of the partnership deed, which valued the truck and its route permit collectively at Rs. 21,000/-. It was argued that the material of the truck could be transferred without the Transport Authority's permission. However, the court found that the valuation and transfer were indivisible and intertwined with the illegal transfer of the permit. Citing legal principles, the court stated that if any part of the consideration supporting a contract is void, it taints the entire contract with illegality. Consequently, the entire partnership deed was invalidated.Conclusion:The court held that the partnership deed was illegal due to the unauthorized transfer of the route permit, rendering the suit for dissolution and rendition of accounts unmaintainable. The revision petition was allowed, and the order of the Sub-Judge, Ramban, was set aside. However, the parties were directed to bear their own costs throughout.Separate Judgments:- S. Murtaza Fazal Ali, C.J.: Agreed with the judgment.- Raja Jaswant Singh, J.: Also agreed with the judgment.
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