TaxTMI 
TaxTMI 
Dissolution of Partnership firm
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....issolution of Partnership firm<br> Query (Issue) Started By: - Arun Aggarwal Dated:- 18-9-2023 Last Reply Date:- 22-9-2023 Other Topics<br>Got 3 Replies<br>Indian Laws<br>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 pa....
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....rtner 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? Reply By KASTURI SETHI: The Reply: Dear Querist, Ans. to Q.A :Firm stands dissolved on the death of one of th....
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....e partners on the same day. Pl. peruse the following judgement of CESTAT Kolkota which holds that the partnership stands dissolved. B.B. BOSE & SONS Vs. COMMISSIONER OF CUSTOMS, CALCUTTA - 1999 (5) TMI 573 - CEGAT, KOLKATA Reply By Arun Aggarwal: The Reply: Kasturi always the first tnx can you pls eloberate the answer of the point no 2 Reply By Padmanathan Kollengode: The Reply: I agree, t....
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....he firm stands dissolved on death of one of the two partner (even if there is any clause in the deed to the contrary). Mohd Laiquiddin v Kamala Devi Misra (deceased) represented by LRs 2010 (1) TMI 1246 - SUPREME COURT 26. In the light of aforementioned case, it is clear that when there are only two partners constituting the partnership firm, on the death of one of them, the firm is deemed to be....
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.... dissolved despite the existence of a clause which says otherwise. A partnership is a contract between the partners. There cannot be any contract unilaterally without the acceptance by the other partner. The Appellants, the legal representatives of original plaintiff (since deceased) was not at all interested in continuing the firm or constitute a fresh firm and they cannot be asked to continue th....
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....e partnership, as there is no legal obligation upon them to do so as partnership is not a matter of heritable status but purely one of contract, which is also clear from the definition of partnership under Section 4. Therefore, the trial court was justified in holding that the firm dissolved by virtue of death of one of the partners and the first appellate court as well as the High Court have take....
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....n the correct view in upholding the same. Commissioner of I.T v. Seth Govindram Sugar Mills 1965 (3) TMI 24 - SUPREME COURT<br> Discussion Forum - Knowledge Sharing ....