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Bombay High Court

SHAM RAGHUNATH THORAT (WANI)versusTHE COLLECTRO OF NASHIK AND ORS

Decided
Disposal
Disposed Off

Holding

The Court held that the partnership is dissolved by operation of law upon the death of a partner, and therefore the dispute pertains to extinguished partnership rights, directing the Collector to decide the licence transfer application and disposing of the writ petition.

Summary

The writ petition arose from a dispute between Sushilabai Raghunath Wani and Shakuntalabai over CL-III Licence No.24, which was originally held by a partnership between Raghunath and Manohar and later continued by Sushilabai and her son, with an agreement that the late Pandit Thorat (Wani) was entitled to a 45% profit share. During the pendency of the proceedings, respondents No.4 and No.5 entered into a consent decree in a civil suit confirming the 45% share to the legal representatives of the deceased, a position later contested by respondent No.5. The Court observed that, under partnership law, the death of a partner dissolves the partnership by operation of law, rendering the partnership rights extinguished. Consequently, the Court directed the Collector to decide the application for transfer of the licence to the legal representatives within eight weeks, after hearing all parties, and to pass a reasoned order. The order dated 25 March 2026 was kept in operation for two weeks, and the writ petition, along with the interim and civil applications, was disposed of.

Issues considered

  • Whether partnership rights survive the death of a partner for purposes of licence entitlement
  • Whether the Collector is obligated to transfer the CL-III licence to the legal representatives of the deceased partner
  • Effect of dissolution of partnership on the continuation and renewal of the licence
  • Appropriate procedural steps for disposal of the writ petition and related applications

Subjects

  • partnership law
  • death of partner
  • dissolution of partnership
  • CL-III licence
  • licence transfer
  • writ petition
  • High Court of Bombay
  • civil application

Judgment

                                                       Speak-1-wp-5236-2011.doc

MPBalekar

             IN THE HIGH COURT OF JUDICATURE AT BOMBAY
                     CIVIL APPELLATE JURISDICTION

                      WRIT PETITION NO. 5236 OF 2011

Sushilabai Raghunath Wani
(since deceased, through her legal heirs)
and Ors.                                         … Petitioners
           V/s.
The Collector of Nasik and Ors.                  … Respondents
                                   WITH
                  CIVIL APPLICATION (ST) NO. 27925 OF 2017
                                     IN
                       WRIT PETITION NO. 5236 OF 2011
                                   WITH
                   INTERIM APPLICATION NO. 1693 OF 2026
                                     IN
                       WRIT PETITION NO. 5236 OF 2011

Ms. Veena Thadhani for the petitioner.
Mr. A.A. Alaspurkar, AGP, for the State.
Mrs. Meena A. Ruparel for respondent No.4.
Mr. Pankaj Jagannath Das for respondent No.5.


                                 CORAM     : AMIT BORKAR, J.

                                 DATED     : APRIL 15, 2026
P.C.:

1.          The matter is called out for speaking to the minutes of order
dated 8 April 2026. The corrected order dated 8 April 2026 reads
thus:-

            “1.   The present writ petition arises from a dispute between
            Sushilabai and Shakuntalabai concerning CL-III Licence



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No.24. The record indicates that an original partnership deed
had been executed between Raghunath and Manohar. Upon
subsequent changes, the said business arrangement was
continued by Sushilabai and her son Pandit Raghunath Wani
[late Pandit Thorat (Wani)], wherein it was mutually agreed
that late Pandit Thorat (Wani) would be entitled to 45
percent share in the profits.

2.    It is further revealed that during the pendency of the
present proceedings, as well as the writ petition, the
respondent Nos. 4 & 5 arrived at consent terms in a civil suit.
Under the said terms, it was agreed that 45 percent share in
the profits shall be paid to the legal representatives of
deceased late Pandit Thorat (Wani). This position however is
disputed by respondent No.5.

3.    However,      having     regard   to   the    nature      of    the
partnership deed executed between Sushilabai and late
Pandit Thorat (Wani), it is evident that upon the death of
one of the partners, the partnership stood dissolved by
operation of law.

4.    This Court, by its order dated 25 March 2026, directed
the concerned authorities to take necessary steps for renewal
of CL-III Licence No. 24. Pursuant thereto, it has been
informed that the said licence has accordingly been
continued.

5.    It is also brought to the notice of this Court that during
the   pendency       of      the   proceedings,       Shakuntalabai,



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Ramchandra and Sham have preferred an application
seeking transfer of the licence in their favour.

6.    In view of the aforesaid factual position, and
considering that the dispute in the present writ petition
emanates from partnership rights which, upon the death of a
partner, no longer subsist in the eye of law, this Court is of
the considered opinion that the following directions would
subserve the ends of justice:

      i. The Collector shall decide, within a period of eight
      weeks from today, the application filed by the legal
      representatives of Sushilabai and late Pandit Thorat
      (Wani) seeking transfer of the licence, in accordance
      with law.

      ii. While deciding the said application, the Collector
      shall afford an opportunity of hearing to all concerned
      parties,    including     the   legal   representatives        of
      Sushilabai and respondent No. 4.

      iii. The Collector shall pass a reasoned order in
      accordance with law. In the event the order is adverse
      to any party, it shall be open to such aggrieved party to
      challenge the same before the appropriate forum.

      iv. The order dated 25 March 2026 shall remain in
      operation for a further period of two weeks from the
      date of receipt of order passed by the Collector.

7.    In view of the aforesaid directions, the writ petition




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     stands disposed of. In consequence of disposal of the writ
     petition, the interim application as well as the civil
     application do not survive and are accordingly disposed of.

     8.    All the contentions of respective parties are specifically
     kept open. ”

2.   Accordingly, correction be carried out in the original order
and upload the same as order No.2 in this matter.



                                                (AMIT BORKAR, J.)




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