Bombay High Court
Abbashbhai K.Golwala
Versus
R.G.Shah
Decided On:

Headnote:PARTNERSHIP ACT, 1932

       Sections 41, 42, 43 and 44-Partnership business-Continuation of-In case of all partners but one being retired in view of express provisions under cause of partnership enabling a remaining partner to continue business in partnership with other partners also remaining partner is entitled to continue business.

       In the present case there is an express provision under Clause 2, which enables a remaining partner to continue the business in partnership with other parties also. In other words, there is a provision for taking new partners into the partnership. The person who remains therefore can continue the business in partnership by taking other persons as partners. In this sense, therefore, the business of the firm may be continued even when all partners, but one retire. The submission, therefore, that the firm must stand dissolved when all partners but one retire must be rejected. On retirement of the other partners the remaining partner is entitled to continue the said business.

       For Citation : AIR 1988 Bombay 187 at pp. 192, 193