PARTNER'S DEATH IS DEATH OF FIRM
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.
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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