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Tubeen   09 May 2019

Determination of Decree Amount in absence of related Documents.

Dear Experts,
Please advice me on how to determine a decree amount in absence of documents related to accounts of a partnership firm. The instant case is at execution process but not proceeding further owing to aforesaid hindrance. However, as the case relates to partnership firm, there was a profit sharing made between the decree holder and judgement Debtor once for one month only. Whereas, in the instant case, decree amount needs to be determined for a period of 9 years. Now, can Decree Holder claim to determine his decree amount on the basis of the one month profit which he had received? If yes, then under which provision of the act? If possible, kindly share with me any precedent rulings in this matter.
Thanking you in anticipation.
With regards.


Learning

 3 Replies


(Guest)

Is your partnership registered ? or unregistered 

Are books of accounts availbale ,or annual tax returns which will ofcourse show profits too.if you have sales turnover record lie VAT returns then we can also calculate prsumptive profits as per incoem tax  act.

You have decree already in hand or case is pending for decree. Wohtout decree howexecution process can start

The information is too sketchy

What your lawyers says 

 

 

 

 

1 Like

Tubeen   10 May 2019

Respected Rajendra Sir,
First of all, my gratitude for your reply and for showing interest in my case. My case has already been disposed off by the court with the passing of decree in my favour i.e. to pay me 60% of profit of past 9 years of the said partnership firm (unregistered firm). Now, the executing court, in pursuance of the execution of the Decree, has seized the documents of the partnership firm in order to determine the Decree amount. However, after inspection of the documents by the chartered accountants (C.A) of both the parties, the C.A's has submitted a "Joint Inspection Report" stating that there is absence of many primary documents like Cash Book, Bank Statement, daily/periodic sales detail, purchase record of goods, etc. owing to which determination of 60% share of past 9 years is not possible. After that, my lawyer has filed a miscellaneous application before executing court under section 151 of CPC (to invoke inherent power of the court) to quantify/determine the 60% profit share on the basis of profit which I had received on the first month when business commenced (I have received my 60% profit share only once). However, the executing court was not convinced, so, my advocate decided to withdraw the miscellaneous application with liberty to file a fresh petition.
Now, my question is how am I suppose to claim my 60% share of profit as there is no documents to determine the exact amount of my 60% share of profit? At the same time, the executing court is of the view that sec. 151 (inherent power of the court) of CPC cannot be invoked.
Please help me by showing a way to claim my money. If possible, any precedent ruling would be of great help.

(Guest)

Inhereent power cannot arbitrai9ly determine profits .I have given tiops as abiove answer already as to what are pssoible legal methids. If you dont have any sales tax retruns Income tax returns GST/VATS retruns  or even proof of puchase of goods for resale /prcessing/manufactruing how any one can determine amount. 

Most cheats in such partnrships that hardly last , remove all books fo accoutns andpurchase files .

In one case I too invested in 1995 but learnt after 45 days workigntbnat aprty is cheat and would some embezzlement. I gave them notice to return my money simply .Withdrawing capital. But as usual they ram away in night with everythign inclduing books .I got them arrested . Still they did not give books to polcie .Ultimately i got dcreed my pricinciple amount with inteerst .On execution you have to find properties of judgment debor that has to be attached or any bank account where money lies.

One house is expemptedform attachment .

Since more details niot availbel you can now seek help of you seemingly capable advicate to pursue matetr as per his/her best 

 


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