Supreme Court of India
SMT. H.B. USHAversusD.S. RAMACHANDRA
- Citation
- 1994 INSC 596
- Decided
- 12 December 1994
- Disposal
- Disposed off
Holding
The Supreme Court approved the settlement, ordering the appellant to pay Rs. 3.25 crore to the respondent and directing withdrawal of all pending suits.
Summary
In the civil appeal concerning a partnership dispute between Smt. H.B. Usha and D.S. Ramachandra, the parties reached an amicable settlement. The Supreme Court approved the settlement, ordering the appellant to pay a total of Rs. 3.25 crore to the respondent for relinquishing his half‑share in the partnership firm Mis Ajax Petro. Specific payment schedules were set, with interest at 21% per annum on any delayed amounts. The Court also directed the withdrawal and disposal of all pending civil and criminal suits between the parties, the handover of lease deeds, and confirmed that the firm's leases would continue as a proprietary concern of the appellant. The appeal was consequently disposed of without costs.
Issues considered
- Whether the court can approve and enforce a settlement agreement between partners in a partnership dispute
- Whether pending civil and criminal suits can be withdrawn and disposed of by the court in accordance with the settlement
- Whether interest at 21% per annum on delayed payments under the settlement is permissible
Subjects
partnershipsettlementcivil appealwithdrawal of suitsinterest on defaultproprietary concernlease deeds
Judgment
A SMT. H.B. USHA
v.
D.S. RAMACHANDRA
DECEMBER 12, 1994
B [K. RAMASWAMY AND N. VENKATACHALA, JJ.]
Partnership-Disputes among partners-Settlement arrived at-
Court 's order in terms of
In this case the parties have settled the disputes amicably. This
c Court passed the following order in terms of the settlement placed
before it. ·
1. The appellant shall pay to the respondent a total sum of Rs.
3,25,00,000 for his giving up half share in the partnership firm in her
favour as under:-
D
(a) A sum of rupees seventy five lakhs which is lying in
the Star Deposit account in State Bank of India, City
Branch, Bangalore, in the name of Stone Bonds (P)
Ltd. should be released to the respondent, with
interest accrued thereon, by crediting the same to the
E account of the respondent within a period of seven
days from the date of this order; (457 G to HJ
(b) the appellant shall deposit in the account of
respondent a sum of rupees Fifty Lakhs within a
period of sixty days from the date of this order. The
F
balance of rupees two crores shall also be deposited by
the appellant in the account of respondent within a
period of four months thereafter or within six months
from the date of this order. In an event of any default
in the deposit of the said amount to the account of
G respondent within the aforesaid respective periods,
from the date of the default till the date of deposit, the
appellant shall pay interest @21 % per annum on the
defaulted amount to the respondent. [458 B to CJ
2. All the pending suits in all the courts against each other or
H against each other's employees or others, whosoever have initiated
456
H.B. USHA v. D.S. RAMACHANDRA 457
them, and all the proceedings both civil and criminal shall stand A
witbdrawn to this Court and disposed of. (458 DJ
3. The respondent shall, as is undertaken by him, handover all the
lease deeds and other documents pertaining to partnership business in
his possession to the appellant within a period of one week from the
date of this order. (459 BJ B
4. In the event of the default being continued beyond the period of
six months, the respondent would be at liberty to approach this Court
for seeking appropriate directions for reversal of the orders passed.
(459 CJ
5. The leases granted in the name of the firm will continue in the
c
same name but, as a proprietory concern of the appellant and the same
shall be regarded as her proprietory concern with fulll proprietory
rights in its assets. (459 CJ
CIVIL APPELLATE JURISDICTION: Civil Apeal No. 9515/94.
D
From the Judgment and Order dated 17.12.93 of the High Court of
Karnataka at Bangalore, in Misc.F.A. No. 1914/93.
S.B. Sanyal and P. Mahala for the Appellant.
H.N. Salve and Ms, Kiran Suri for the Respondent. E
The following Order of the Court was delivered
Leave granted.
We are happy to note that at the suggestion of this Court, the parties
have settled the disputes amicably. Therefore, having regard to the terms of F
such settlement placed before us, the following order is made:
The appellant-Smt. H.B. Usha shall pay to the respondents D.S.
Ramchandra a total sum of Rs. 3,25,00,000 for his giving up half share in
the partnership firm-Mis Ajax Petro in her favour as under:
G
(1) A sum of Rs. 75,00,000 which is lying in the Star Deposit account
in State Bank of India, City Branch, Bangalore, in the name of Stone Bonds
(P) Ltd. should be released Jo the respondent, with interest accrued thereon,
by crediting the same to the account of the respondent in Canara Bank,
South End Road Branch, Bangalore, within a period of seven days from
today; .or the appellant shall give necessary direction to the S.B.I., City H
458 SUPREME COURT REPORTS [1994] SUPP: 6 S.C.R
A Branch, Bangalore, to withdraw the deposit made in Stone Bonds (P) Ltd.
in the name of the respondent and deposit the same in the account of the
respondent in Canara Bank, South End Road Branch, Bangalore, the
account number to be given by the respondent.
· (2) The appellant shall deposit in the said account of respondent a sum
B of Rs. 50,00,000 within a period of sixty days from today.
(3) The balance of Rs. 2,00,00,000 (rupees two crores) shall also be
deposited by the appellant in the said account of respondent within a period
of four months thereafter or within six months from today.
In the event of any default in the deposit of the said amounts to the
c account of respondent, namely, Rs. 50,00,000 ·(rupees fifty lakhs) and two
crores within the aforestated respective periods, from the date of the default
till the date of deposit, the appellant shall pay interest @ 21 % per ann~m on
the defaulted amount to the respondent.
(4) As requested by the appellant and the respondent, all the pending
D suits in all the courts against each other or of each other's people and all the
proceedings both civil and criminal shall stand withdrawn to this Court and
disposed of.
All suits of either party or others connected with the dispute are
disposed of in terms of this order.
E
(5) All the criminal proceedings pending against each other or against
each other's employees or others, whosoever have initiated them, shall also
stand withdrawn to this Court and disposed of. The list of which is given
below:
(a) O.S.No. 5550/93 on the file of the City Civil Judge, Court Hall 13,
F
Court Complex, Bangalore.
(b) O.S. No. 10753/93 on the file of 7th Addl. City Civil Judge at
Bangalore.
(c) F.l.R. 388/93 of Jayanagar Police Station filed by Mr. D.S.
G Ramachandra to be closed.
(d) HB. Usha's case against the D.S. Ramachandra and B.S. Nagaraj
in High Ground Police Station on September 1993 to be closed.
(e) Suit No. 118/93 in the Munsifs Court, Berhampur filed by H.B.
H Usha.
H.B. USHA v. D.S. RAMACHANDRA 459
(f) Case of theft against Mr. S.C. Bisogi, Manager, Ajay Petro, filed by A
Mr. Shesadri, Power of Attorney Holder of Mr. D.S. Ramachandra in Town
Police Station Berhampur.
(g) Police case filed by Mr. Bistu Mohan against Mis Lathi and S.C.
Bisogi.
B
(6) The respondent shall, as is undertaken by him, handover all the
lease deeds and other documents pertaining to partnership business in his
possession to the appellant within a period of one week from today.
(7) In the event of the default being continued beyond the period of six
months, the respondent-D.S. Ramachandra would be at liberty to approach C
this Court seeking appropriate directions for reversal of the orders passed
today. The leases granted in the name of firm Mis Ajax Petro will continue
in the same name but, as a proprietory concern of the appellant-H.B. Usha
and Mis Ajax Petro shall be regarded as her proprietory concern with full
proprietory rights in its assets.
D
The appeal is accordingsly disposed of. No costs.
T.N.A. Appeal disposed of.
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