The ruling was made in an appeal challenging an order by the Allahabad High Court in a dispute over ownership rights concerning Hotel Alka Raje in Faizabad.
The Court upheld the High Court’s reasoning, citing Section 14 of the Indian Partnership Act, 1932. This provision states that any property brought into the stock of a firm becomes the firm’s property, irrespective of its prior ownership. The Court referenced past judgments to reinforce the settled legal position that a partner’s individual asset, once introduced into the firm, loses its separate identity and becomes part of the firm’s common pool of assets.
It found no merit in the appellant’s argument that ownership could not be transferred through a relinquishment deed, emphasising that since the property had already become a firm asset under Section 14, the question of personal ownership did not arise.
