Company Law -1

Moot Proposition 4

Some of the partners of a partnership firm carrying on the business of plying buses formed a Pvt.
Ltd. Company which they could do under the law even while the partnership continued to be the
running concern. These partners sold to the company their own buses which were being used by the
firm before. The second set of partners who constituted the minority sued the first group forming
the company for accounts and their share of profits on the ground that in reality the company was
not a different entity from the firm and that the business carried on by it was the same as that of the
firm.
Prepare your arguments according to the relevant statutory provisions and decided case laws on the
issues to defend your client.