Retiring partner liability continues without statutory public notice and agreement, so execution objection failed.

A retiring partner remains liable for pre-retirement liability to third parties unless discharged by agreement with that third party and the partners of the reconstituted firm. Where no such agreement is shown, liability continues until statutory public notice of retirement is given. For a registered firm, the notice requirements include intimation to the Registrar of Firms and publication in the Official Gazette and at least one vernacular newspaper. On the facts, retirement occurred after the cause of action had arisen and the statutory mode of public notice was not proved, so the objection to execution under Section 47 CPC failed and liability was not avoided.

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Issues: Whether a partner who retired from the firm after the cause of action arose and without compliance with the statutory mode of public notice could avoid liability in execution proceedings and obtain dismissal of the execution petition under Section 47 of the Code of Civil Procedure, 1908.

Analysis: The liability of a retiring partner is governed by Section 32 of the Indian Partnership Act, 1932. A retiring partner may be discharged from liability to a third party for pre-retirement acts only by an agreement with that third party and the partners of the reconstituted firm. In the absence of such agreement, the partner continues to be liable to third parties until public notice of retirement is given. Section 72 of the Indian Partnership Act, 1932 requires, in the case of retirement from a registered firm, notice to the Registrar of Firms under Section 63 and publication in the Official Gazette and in at least one vernacular newspaper. The petitioner's retirement occurred after the cause of action had already arisen, no agreement discharging liability was shown, and the statutory mode of public notice was not proved to have been followed.

Conclusion: The petitioner remained liable to the respondent, and the objection to execution failed. The revision was therefore not entitled to succeed.

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