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Supreme Court of India 2019-10-18 dismissed

S.P.MISRA vs MOHD.LAIQUDDIN KHAN

Bench: 2 — Indu Malhotra, R. Subhash Reddy

In Brief

This appeal concerns whether a civil decree obtained by one partner against another partner in a two-member real estate partnership can be executed against the legal heirs of the deceased partner. The deceased partner owned land; upon her death, the partnership was statutorily dissolved under the Indian Partnership Act. The Supreme Court held that the decree cannot be executed against the legal heirs because they were not parties to the original partnership deed and derive no assets or liabilities from it. The Court applied the privity of contract principle: contractual obligations cannot bind third parties. The decree was therefore unexecutable, and the appeal was dismissed.

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Partnership Law Civil Procedure Execution of Decrees Privity of Contract Succession and Legal Heirs

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