Question

X and Y who jointly own a house, converted that house into a hotel after investing? 100,000 each. X manages the hotel and meet all expenses and retains half of gross earnings and hands over the other half to Y. Can X and Y be regarded as partners?

Answer 1

Solution: Section to which the given problem relates: Explanation 1 to Section 6.
Decision: No.
Reason: X and Y are merely co-owners who are sharing the gross returns arising from a joint property.
[Leading case: Govind Nair v. Magal]