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Sarkhel Enterprise and Ors. v. Jagannath Maity and Ors. - (High Court of Calcutta) (11 Aug 2015)

Partner intending to retire from business not the same as partner who died in the course of the partnership

MANU/WB/0680/2015

Civil

A partnership does not automatically stand dissolved if a partner shows an intention to retire, or even serves notice of retirement to the other partner. The Defendants had alleged that the desire of one of the Plaintiff's to retire meant a dissolution of the partnership as the partnership would be left with only one partner. The Court held that the intention of the partner was not static and was subject to reconsideration later; further, once notice was given, it could subsequently be withdrawn with the consent of the other partners. It rejected the Defendant's submissions, observing that the difference in the finalities contained in death and a decision to retire could not be equated.

Relevant : Commissioner of Income Tax, Madhya Pradesh, Nagpur and Bhandara vs. Seth Govindram Sugar Mills MANU/SC/0170/1965 Paul Enterprise and Ors. vs. State of West Bengal and Ors. MANU/WB/0214/2004

Tags : PARTNERSHIP   NOTICE   RETIRE   DISSOLUTION  

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