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of <h1>Supreme Court upholds validity of partnership deed post partner's death, widow can act as partner.</h1> The Supreme Court ruled in favor of the assessee-firm in a case involving the validity of a partnership deed after a partner's death. The Court held that ... Mohan Lal Daulat Ram and his son, Sevanti Lal, were partners under a deed of partnership in their individual capacity - on death of father, partners of the firm were Sevanti Lal and his mother - whether this was a valid partnership - Held, yes - hence entitled to registration Issues: Validity of partnership deed after the death of a partner, Competency of widow to act as karta of the family, Devolution of partnership interest after partner's death, Granting registration to the assessee-firmThe Supreme Court heard an appeal from a decision of the Bombay High Court regarding a reference under section 66(1) of the Indian Income-tax Act, 1922, for the assessment year 1959-60. The case involved a partnership between Mohan Lal Daulat Ram and his son, Sevanti Lal, where profits were shared equally, but goodwill belonged solely to Mohan Lal. After Mohan Lal's death, a new partnership deed was executed, making Sevanti Lal and his mother, Bai Chandanbai, partners. The High Court was tasked with determining the validity of this new partnership deed, specifically whether Bai Chandanbai, as the widow of Mohan Lal, could be considered a valid partner. The High Court held that Bai Chandanbai was not competent to act as karta of the family and enter into the partnership. However, the Supreme Court disagreed, stating that after Mohan Lal's death, his interest in the partnership devolved equally to Bai Chandanbai and Sevanti Lal, making them competent to enter into a partnership. The Court set aside the High Court's order and upheld the Tribunal's decision to grant registration to the assessee-firm, albeit for different reasons. The Court concluded that the partnership was valid and restored the Tribunal's decision, ruling in favor of the assessee-firm without costs.
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