Partnership

Dissolution of Partnership on Death of a Partner

When a partner dies, subject to any contract to the contrary, partnership is dissolved. Section 42 of the Indian Partnership Act, 1932 (“Act”) provides for dissolution of partnership on occurrence of certain contingencies which includes ‘death of the partner’ as one of those contingencies. Plain reading of the Section 42 would show that, subject to…

Contract Law | Partnership

Uttamchand Vs. Mohandas

Uttamchand  Vs.  Mohandas AIR 1964 Raj  50 Key Words: subsequent discovery of illegality, partnership, minor FACTS Plaintiff, a minor, claimed recovery of the vacant possession of the shop which he had given for carrying out the business in which he was made a partner (his guardian signed on behalf of him). In the initial proceedings,…

Contract Law | Partnership

Cox v. Hickman

Cox v. Hickman Facts Benjamin Smith and Josiah Timmis Smith carried on business as iron workers and corn merchants under the name of B Smith & Son.  They owed a lot of money to the creditors and a meeting took place, amongst whom were Cox and Wheatcroft. A deed of arrangement was executed by more…

Contract Law | Partnership

Karumuthu Thiagarajan Chettiar and Anr. v. E.M. Muthappa Chettiar

Karumuthu Thiagarajan Chettiar and Anr. v. E.M. Muthappa Chettiar 1961 SCR (3) 998 [partnership at will, section 7] Facts Muthappa Chettiar (MC)[1] and K. Thiagarajan Chettiar (TC)[2] entered into a written partnership agreement for the managing agency business of the two mills (Rajendra & Saroja) wherein they fixed turns to manage the mills and the…

Contract Law | Partnership

Commissioner of Income Tax, Madhya Pradesh v. Dewas Cine Corporation

Commissioner of Income Tax, Madhya Pradesh v. Dewas Cine Corporation 1968 SCR (2) 173 [distribution of assets-sale or not?, section 46] Facts A partnership firm dealing with cinematographic films got dissolved. Individual Cinematograph theatres were treated as the assets of the partnership. Partners of the firm handed over this asset along with its depreciation cost…