When there are two partners, and one of them dies, the firm is automatically dissolved even if there is clause in the partnership deed that the firm will continue in existence. In the case, Mohd Laiquiddin vs Kamala Devi one party claimed that the partnership continued though one partner had died. The court rejected this contention explaining that the firm is deemed to have been dissolved despite the existence of the clause. Upholding the view of the Andhra Pradesh high court, the SC said partnership is not a matter of heritable status; it is purely one of contract under Section 4 of the Contract Act.

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0 responses to “Partner’s death is death of firm”

  1. RANJAN MAJUMDER says:

    A PARTNERSHIP FIRM -PARTNER FATHER AND 2 SON, AFTER DEATH OF FATHER THE FORMAT OF THE AMENDMENT DEED OF PARTNER

  2. umesh says:

    if a partner dies and remaining parners should continue.what will be the next step.go for a amendment deed or a new partnership deed

  3. sunil says:

    if there are two partners and one partner died is it true that the heirs of deceased partner will become co owners and id there any particular clause in any act pleas give details

  4. Vikram Singh Shekhawat says:

    Mohd. Laiquiddin and Anr.
    Vs.
    Kamala Devi Misra (Dead) by L.Rs. and Ors.

    Citation: 2010(1)AWC707(SC), JT2010(1)SC440, (2010)2MLJ820(SC), 2010(1)SCALE227, (2010)2SCC407, MANU/SC/0031/2010

  5. Rajat says:

    Can some one also give details of as to how and on what basis were the assets and profits of the firm distributed/calculated to the heir of deceased partner in this case as up held by the SC.

  6. rkdhandia says:

    Can some one give the complete citation from where the full judgement can be taken

  7. Girish Sharma says:

    As per the definition of Partner under Partnership Act, it has clearly been laid that it is a contract between more than one person. True, if their are Two partners and 1 of them dies, the contract itself comes to an end and no provision in the Partnership deed can override any clause in the Partnership deed which contravenes the Partnership Act itself.
    Decision is very good and upholds the definition. Thus, to avoid such situation it is suggested that All Chartered Accountants should suggest their clients as to have atleast 3 partners if they want to start Partnership form of Business.

  8. Sreedar says:

    What is the use and impact of the clause mentioned at the time of aggreement / partnership deed. If the clause is not applicable, then why we should interpret while incorporating the deed. Explain?

  9. sankar says:

    if the decesed partners will the firm can alive with her/his grand son, then how the view before the law

  10. Naresh Samkaria says:

    Please give the citation (ITR No. etc) so that details can be looked into.

  11. Pooja says:

    I think this will be only in case if there are 2 partners,but if there are more than 2 partners and if 1 partner dies then it wont be dissolved ( section 12 and 42 of partnership act)

  12. M.Kothari says:

    Can u plz tell me the reference of the case & the ITR reference no

    • CA Sandeep Kanoi says:

      MOHD. LAIQUIDDIN & ANR. Vs. KAMALA DEVI MISRA (DEAD) & ORS.
      494. C.A.No.6933-6934/2002
      XIIA ADJD
      87, 0, 0 S.(2801)

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