Court rules deceased partner's decree not enforceable against legal heirs, partnership dissolution key. Statutory provisions prevail.

The Court held that the decree obtained by a deceased partner was not executable against the legal representatives of the other deceased partner. The partnership dissolved upon the death of a partner, rendering the decree non-binding on the legal heirs. Clauses in the partnership deed contradicting statutory provisions were deemed void. The legal representatives of the deceased partner were not party to the original partnership deed, thus not bound by the decree. The appeal was dismissed, affirming the decree's unenforceability against the respondents.

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Issues Involved:
1. Executability of the decree against legal representatives of a deceased partner.
2. Dissolution of partnership upon the death of a partner.
3. Validity of clauses in the partnership deed against statutory provisions.

Issue-wise Detailed Analysis:

1. Executability of the Decree Against Legal Representatives of a Deceased Partner:
The appellants, legal heirs of late Sri Jai Narayan Misra, argued that the decree obtained by their predecessor should be executable against the respondents, legal heirs of late Smt. Hashmatunnisa Begum, based on the partnership deed's clause that legal representatives automatically become partners upon a partner's death. The decree, obtained in O.S. No. 580 of 1988, permanently restrained the defendant from developing and selling the property and directed the defendant to sign necessary documents for layout plan submission.

However, the respondents contended that the partnership dissolved upon the death of a partner as per Section 42(c) of the Partnership Act, 1932, making the decree non-executable against them. The Court held that since the partnership dissolved by operation of law upon the death of a partner, the decree obtained against the deceased partner could not bind the legal representatives. The principle of "Privity of Contract" was cited, emphasizing that only parties to the contract are bound by it.

2. Dissolution of Partnership Upon the Death of a Partner:
The Court examined Section 42 of the Partnership Act, 1932, which stipulates that a partnership dissolves upon the death of a partner unless otherwise agreed. Despite the partnership deed's clause that legal representatives would continue as partners, the Court found that the partnership dissolved upon the death of one of the two partners, making the partnership non-existent and the decree unenforceable against the legal heirs.

3. Validity of Clauses in the Partnership Deed Against Statutory Provisions:
The Court scrutinized the partnership deed's clause that legal representatives would automatically become partners and found it contrary to Section 42(c) of the Partnership Act, 1932. It held that such clauses, which run contrary to statutory provisions, are void and unenforceable. The Court emphasized that any contract clauses against third parties, who are not original partners, would not bind them and are opposed to public policy.

Conclusion:
The Court concluded that the decree obtained by late Sri Jai Narayan Misra was not executable against the respondents, as the partnership dissolved upon the death of one of the partners. The legal representatives of late Smt. Hashmatunnisa Begum were not bound by the decree as they were not parties to the original partnership deed. The appeal was dismissed, affirming the decisions of the Trial Court and the High Court, which had held that the decree was void and un-executable against the respondents.

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