Indian partnership act,1932
This query is : Resolved
priyanka gupta
(Querist)
16 June 2017
Respected All,
If there are 2 partners in a partnership firm and one of them dies then whether partnership will dissolve or not. and what are the ways in which we can continue this partnership
If there are 2 partners in a partnership firm and one of them dies then whether partnership will dissolve or not. and what are the ways in which we can continue this partnership
Aswath Raman
(Expert)
16 June 2017
Hi Priyanka!
Yes. The partnership ceases to exist when one partner dies. The legal heirs will be entitled to the deceased partner's share of assets as on the day of the partner's death.
You'll have to create a new partnership deed with the legal heirs to continue the business, if they are interested to do so.
Following case law will help you for better understanding and the legal position.
CIT vs. Seth Govindram Sugar Mills
Yes. The partnership ceases to exist when one partner dies. The legal heirs will be entitled to the deceased partner's share of assets as on the day of the partner's death.
You'll have to create a new partnership deed with the legal heirs to continue the business, if they are interested to do so.
Following case law will help you for better understanding and the legal position.
CIT vs. Seth Govindram Sugar Mills
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