Samuel Gnanam and Others v Ismail Lebbe – sllr 2008 volume 2 page 061

In the case between Samuel Gnanam and Others (including Samuel Gnanam) and Ismail Lebbe, the court addressed whether an action for recovery of money under a Distributorship Agreement is maintainable when instituted by only some partners of a partnership, particularly in the absence of a written Partnership Agreement. The holding determined that, despite the absence of such a written agreement, the action could proceed if there was no sufficient evidence of the initial capital requiring compliance with Section 18 of the Prevention of Frauds Ordinance. The principle established was that “capital,” within the meaning of Section 18, refers to the original capital contribution, and the onus of proving the necessity of a written agreement rests on the party invoking the bar. Ultimately, the Cour