Go AD-Free with CAclubindia Pro and Daily Mobile Updates. Subscribe Now!

Resignation procedure from partnership at will

Ankit Shah (Others) (25 Points)

12 January 2014

Dear All,

I am a partner in a partnership firm with 3 other people registered at Mumbai. Due to various reasons, I wish to resign from the partnership. The Deed says, "PARTNERSHIP AT WILL". However, due to trust issues, the buisness also faces closure but, the partners are having a tiff due to which they are not disolving the partnership. Please guide me appropriately in how to end my alliances with the partnership.

Will just serving the notice of resignation be enough to dissolve the partnership?

Will I need to maintain anything as a proof that i need to obtain(from partners) that I have resigned?

How do i go about it?

Thanks.

Reply
Follow
Share

2 Replies

Deepak Gupta (CA Student) (15922 Points)
Replied 12 January 2014

Under section 32(1) of the Indian Partnership Act, 1932, in the case of a partnership being at will, every partner shall have the right to retire by giving notice to that effect to all the other partners.
.
As regards the issue or publication of notice of retirement, section 32(3) read with section 72 of the Partnership Act is relevant.
.
-- In case the firm is not registered, the fact of retirement is to be published in (i) at least one vernacular newspaper circulating in the district where the firm has its principal place of business and (ii) the Official Gazette.
.
-- In case of a registered firm, the retiring partner must give notice of his retirement to– (i) the Registrar of Firms (ii) in the Official Gazette, and (iii) in at least one vernacular newspaper circulating in the district where the firm has its principal place of business.

1 Like

Ankit Shah (Others) (25 Points)
Replied 19 January 2014

Originally posted by : \|)eep @ k Gupt/\
	Under section 32(1) of the Indian Partnership Act, 1932, in the case of a partnership being at will, every partner shall have the right to retire by giving notice to that effect to all the other partners. . As regards the issue or publication of notice of retirement, section 32(3) read with section 72 of the Partnership Act is relevant. . -- In case the firm is not registered, the fact of retirement is to be published in (i) at least one vernacular newspaper circulating in the district where the firm has its principal place of business and (ii) the Official Gazette. . -- In case of a registered firm, the retiring partner must give notice of his retirement to– (i) the Registrar of Firms (ii) in the Official Gazette, and (iii) in at least one vernacular newspaper circulating in the district where the firm has its principal place of business.

Due to a few problems brewing among me and my partners, they might not accept the notice. May I know under what contexts other than third party liability can they deny my notice?