Recently one of you asked me a question on WhatsApp.
The question was-
After death of a partner can his wife or his legal heir be a partner of that partnership firm?
WritingLaw’s answer-
Section 42(C) of Partnership Act talks about ‘Dissolution of firm on the death of a partner.’
If there is no contract to the contrary then partnership automatically dissolves on the death of a partner.
Because as per section 4, partnership is result of an agreement and thus can not be succeeded mere by status of being heir.
And as per section 35:
When a partner dies he ceases to be a partner and all his liability also ceases. This section is meant for protection of estate of deceased.
Under section 37:
Legal representatives can claim profits of deceased partner only when the business of partnership firm is continuing.
Note: The claim can be for an account of deceased or for a specific amount which represents deceased partner’s share.
So this is how it generally goes until there is any contract to contrary. If any contract between partners specifies the events to take place after dissolution then it shall act accordingly.
Related:
- Read full Partnership Act, 1932 on one page.
- 7 ways of Dissolution of a Partnership Firm.
- Position, Status and Rights of a Minor in Partnership Firm.
- Incoming and outgoing partners.
- Article 334A of the Constitution of India - 14th April 2024
- Article 332A of the Constitution of India - 14th April 2024
- Article 330A of the Constitution of India - 14th April 2024
