A Firm is registered under Indian Partnership Act consisting of two partners. If one of partners expire and out of four legal heirs of deceased partner , one legal heir with written consent of other three legal heirs , becomes partner of said firm from the date of death of deceased partner.
A) Will above be treated as dissolution of firm or continuation of firm ? Please support your reply with case laws
B) Can any debtor deny to pay debt on the ground that firm have been dissolved on death of one of partners?
Does a Partnership Dissolve Automatically Upon a Partner's Death? Legal Precedents Clarify Under Indian Law. A discussion on the dissolution of a partnership firm under Indian law involves a query about whether a firm is dissolved upon the death of one of its two partners. The responses indicate that the firm is dissolved, referencing legal precedents such as B.B. Bose & Sons v. Commissioner of Customs and Mohd Laiquiddin v. Kamala Devi Misra, which affirm that a partnership is dissolved upon a partner's death, even if the partnership deed states otherwise. The discussion also touches on the inability of a debtor to deny payment based on the firm's dissolution, though this point was not elaborated. (AI Summary)
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