2008 Supreme(Kar) 45

2008 (4) KLO 429 AC 374
IN THE HIGH COURT OF KARNATAKA
V. Jagannathan, J.
RFA No. 2096/06
Smt. Usha Gopirathnam and Others - Appellants
Vs.
Shri P.S. Ranganathan and Others - Respondents
Decided on 22-1-2008

Result: Appeal dismissed.

Headnote:INDIAN PARTNERSHIP ACT, 1932 - Section 4:[V. Jagannathan, J] Definition of "partnership" - Held, Existence of a contract is a sine qua non of relationship of partnership. Such a contract can be either expressed or implied. Clause in Partnership Deed stating that heirs or representatives in interest of dead partners shall be entitled to be partners in Firm should not be construed to mean "in place of deceased partner" . Unless the heir or representative of deceased exercises his option pursuant to use of expression ’entitled to’ no inference can be drawn as to existence of partnership. Heirs of deceased partner do not automatically become partners.

       INDIAN PARTNERSHIP ACT, 1932 - Sections 32 & 24: [V. Jagannathan, J] Retirement of partner - Held, Notice as to retirement to be given to one partner who habitually acts in business of Firm. Such notice operates as notice to Firm in as much as Firm includes all partners. Letter by retiring partner expressly stating that he is desirous of retiring from partnership Firm and that his account also be settled by assessing assets and liabilities, clearly expresses his intention to retire. Moreso, when from date of retirement till his death i.e. for 24 years the retiring partner neither drew any profits, nor any material was produced by plaintiff filing suit for dissolution of Firm to show that retiring partner drew his share of profit during relevant period or continued as partner till his death.