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Issues: Whether a partnership deed that transferred an undivided share in a route permit without the transport authority's permission was illegal and whether a suit for dissolution of partnership and rendition of accounts could be maintained on that basis.
Analysis: A route permit cannot be transferred from one person to another except with the permission of the authority that granted it. On the terms of the partnership deed, the defendant purported to transfer 2/3rd share of the truck and its route permit to the plaintiffs from the date of the deed itself, without any such permission. The cases relied upon for the respondents were distinguished because they involved no transfer of permit or share therein. The contract was treated as one and indivisible, and where part of the consideration is void, the illegality taints the whole agreement.
Conclusion: The partnership deed was hit by the prohibition against transfer of the permit and was illegal. No suit for dissolution of the partnership or rendition of accounts was maintainable on that basis.
Ratio Decidendi: A partnership which expressly transfers a share in a transport route permit without the permission required by law is illegal, and if the contract is indivisible, illegality in that part vitiates the entire agreement.