LexSACHIN JAISWAL versus M/S HOTEL ALKA RAJE & OTHER
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[2025] 2 S.C.R. 1396 : 2025 INSC 275 Sachin Jaiswal v. M/s Hotel Alka Raje & Other (Civil Appeal No. 3269 of 2025) 27 February 2025 [Sudhanshu Dhulia* and Ahsanuddin Amanullah, JJ.] Issue for Consideration Whether the High Court was justified in holding that the Hotel constructed by the late father of the appellant on the property which he had bought in 1965, was his contribution to the firm and thus, the same was brought on to the stock of the firm and would become the ‘property of the firm’ as per Section 14, Partnership Act. Headnotes† Partnership Act, 1932 – s.14 – Interpretation – Late father of the appellant, if had brought the property in question to the stock of the partnership firm as his contribution to the same: Held: s.14 enables a partner to bring a property which belongs to him, by the ‘evidence of his intention’ to make it a property of the firm and to do so, no formal document or agreement is necessary – In the present case, the late father of the appellant first acquired the property in the year 1965 and then after constituting the partnership firm (respondent No.1) in 1972, he jointly constructed a building over the property with his brother and partner, pursuant to which the building was constructed which was to run as a hotel – Thus, the late father of the appellant had brought the property in question to the stock of the partnership firm as his contribution to the same – The property had become the firm’s property at the very moment he started constructing the hotel on his land after constituting the partnership – The evidence of his intention to contribute the land and the building of Hotel is clear – Order of the High Court not interfered with. [Paras 14, 15, 17] Case Law Cited Addanki Narayanappa v. Bhaskara Krishnappa [1966] 3 SCR 400 : 1966 SCC OnLine SC 6 – relied on. * Author [2025] 2 S.C.R. 1397 Sachin Jaiswal v. M/s Hotel Alka Raje & Other The Chief Controlling Revenue Authority vs. Chidambaram, Partner, Thachanallur Sugar Mills and Distilleries and Ors., AIR 1970 Mad 5 (FB) – approved. List of Acts Partnership Act, 1932. List of Keywords Section 14 of the Partnership Act; Land; Building of Hotel; Firm’s property; Contribution to the partnership firm; Property brought on the stock of the partnership firm; ‘Property of the firm’ ; Partnership firm; Building constructed jointly over the property. Case Arising From Civil Appellate Jurisdiction: Civil Appeal No. 3269 of 2025 From the Judgment and Order dated 09.03.2022 of the High Court of Judicature at Allahabad, Lucknow Bench in FA No. 60 of 2021 Appearances for Parties Advs. for the Appellant: Ms. Vasudha Banka, Kushagra Kaul, Kabir Dixit. Judgment / Order of the Supreme Court Judgment Sudhanshu Dhulia, J. 1. Leave granted. 2. The appellant before this court has challenged the order dated 09.03.2022 passed by the High Court of Judicature at Allahabad, in First Appeal No. 60/2021 by which the High Court has disposed of the First Appeal preferred by the appellant with certain clarifications. 3. Briefly, the facts necessary for our consideration are that father of the appellant, late Bhairo Prasad Jaiswal had vide registered sale deed dated 01.10.1965 purchased a plot of land admeasuring 4 bigha 10 biswa 5 biswansi situated at Mohalla Rikabganj, Faizabad. Then, in the year 1971, he entered into an oral partnership with his 1398 [2025] 2 S.C.R. Supreme Court Reports brother, namely Hanuman Prasad Jaiswal, which was later reduced into writing vide Partnership Deed dated 11.10.1972 and thus the partnership firm, M/s Hotel Alka Raje i.e. respondent No. 1 herein was constituted. The two brothers jointly constructed a building on the land and started running a hotel business under the name and style of ‘Hotel Alka Raje’. 4. In 1982, two new partners, which are respondent Nos. 2 and 3 herein, were inducted in the firm vide Partnership Deed dated 07.06.1982. In 1983, late Bhairo Prasad Jaiswal wished to relinquish his rights from the land on which the hotel was constructed and thus, he executed a relinquishment deed dated 09.03.1983 duly registered, pursuant to which the property was released in favour of M/s Hotel Alka Raje (respondent No. 1 herein). This Relinquishment Deed further stipulated that his legal heirs or successors will have no right, title or interest in the property. 5. Although he had relinquished his right and title from the property on which the hotel was constructed, lat
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