Dissolution of partnership firm

This query is : Resolved

CA Kalpesh Patel (Querist)
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27 July 2013 please help me in the following case:

My client doing a business under partnership entity since 1986 and there are 2 partner in it. In 2006 one of partner die and the business is run by remain partner and no dissolution deed had been exeucted at that time and no surrender of the PAN card to the authority. the firm is not register firm only partnership deed is made.

Now what should i do...?

Ajay Mishra

Ajay Mishra (Expert)
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28 July 2013
DISSOLUTION OF PARTNERSHIP FIRM
The Act also provides that a Partnership firm may be dissolved under the following circumstances namely:
(a) as a result of any agreement between all the partners; or
(b) by adjudication of all the partners or all partners but one as insolvent, or;
(c) by the happening of an event which makes it unlawful for the business of the firm to be carried on in Partnership or;
(d) subject to agreement between the parties, on the happening of any of the following events such as (i) efflux of time, (ii) completion of the adventure, (iii) death of a partner, and (iv) insolvency of a partner.
In these last four cases the Partnership agreement may provide events. Even if the deed provides that the Partnership will not be dissolved on the death or insolvency of a partner, it does not mean that on the death or insolvency of a partner he ceases to have interest in the Partnership property. In such cases his interest in the Partnership property will survive to his heirs in case of his death and to his assignees in case of insolvency. In the absence of a term in the deed of Partnership to that effect, it cannot be that, the Partnership shall continue, and notwithstanding the death of a partner it will operate to extinguish his proprietary rights in the assets of the Firm. A Partnership can also be dissolved by the Court under the circumstances mentioned in Section 44 of the Act. Where the Partnership is ‘at will’ the Partnership can be dissolved by any partner or partners giving notice his/their intention to dissolve the firm.
A firm can be dissolved with the consent of all the partner or according to contract between the partners {AIR 1971 SC 1653}.
Suit filed after three years of executions of dissolution deed for rendition of account is barred by limitation.{Madam Lal Vs Shiv Narain 1986 (CCC) 464}.

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