Partnership Deed
udai s parmar
(Querist) 12 May 2010
This query is : Resolved
My father and aunty( father's brother's wife) are partners in a firm. Now due to differences in family, my aunty has given a public notice and a letter to my father to retire from the firm.
There is bank's loan in the partnership firm and my father want to continue the firm by taking my brother as partner.
My query is :
Can our aunty object to this arrangement and insist on dissolution of the firm?
There is no clause in the deed that when a partner retires the firm will have to be dissolved.
Kindly advise and let me know the correct position of law in such case.
Devajyoti Barman
(Expert) 12 May 2010
If the partnership deed mentions that the firm would not dissolve after the retirement of a partner your aunt can not raise any objection unless her accounts are not settled.
B K Raghavendra Rao
(Expert) 13 May 2010
If there is a bank loan (liability), your aunt is liable to pay her part of the liability as on the date of her retirement in terms of the partnership deed. She cannot insist that the partnership should be dissolved. However, she would not be responsible for debts or profit after the date of her retirement.
