Gill v Sandhu

Facts

In 1995 Mr Sandhu and Mr Gill agreed as partners at will to purchase 59 Mountdale Gardens, Leigh On Sea, Essex, to convert it into an old people's residential home and to carry on that business there. The property was duly purchased, converted and used. By a partnership deed executed on 12 September 1995 the parties agreed that Mr Sandhu should manage the home, that the net profits should be applied first in payment of a salary to him for those services (agreed in the proceedings at £22,000 a year) and thereafter divided equally, and that the partnership assets, including the property, should belong to the partners equally. Each was to contribute about £85,000 of capital; Mr Sandhu could find only £21,250 in liquid funds and borrowed the balance from Mr Gill. Mr Sandhu managed the home until 12 April 1999, when differences arose and Mr Gill excluded him from the property and thereafter carried on the business on his own account without his consent. The partnership was dissolved on that date. Mr Sandhu commenced proceedings on 7 May 1999 seeking the winding up of the partnership. Master Bowles resolved a multitude of issues by a decision dated 24 September 2004, holding that Mr Sandhu was entitled to a half share of the post-dissolution profits and ordering an interim payment of £25,000. Permission to appeal was refused by the Master but granted by Lightman J.