Retirement of Partnet

HIDAYATULLAH NATIONAL LAW UNIVERSITY

A PROJECT PROJECT REPOR RE PORT T ON Retirement of PartnerPartner- Overview

SU!ITTED TO" Ms. BALWINDER KAUR  (Faculty of CONTRACTS-II)

S#$mitte% &" A'a& La(ra  Ro)) No* - +, Semeter- III

Acknowledgements I A!A" LAKRA f##l $ys#lf %&'%ly #lat# as &t '&#s $# t*#$#+ous ,l#asu*# to co$# out &t% o* o+ t%# to,&c /R ETIREMENT OF 0ARTNER 1. F&*st a+ fo*#$ost I ta# t%&s o,,o*tu+&ty to t%a+ Ms. Bal&+a* Kau* Faculty La of  Co+t*acts-II 2&ayatulla% Nat&o+al La U+&#*s&ty Ra&,u* fo* allott&+' $# suc% to,&c to o*  o+. 2# %as 3##+ #*y &+ &+ ,*o&&+' &+,uts fo* t%&s o* 3 y ay of %&s su''#st&o+s. I oul also l&# to t%a+ $y #a* coll#a'u#s a+ f*&#+s &+ t%# U+&#*s&ty %o %a# %#l,# $# &t% &#as a3out t%&s o*. Last 3ut +ot t%# l#ast I t%a+ t%# U+&#*s&ty A$&+&st*at&o+ fo* #4u&,,&+' t%# U+&#*s&ty &t% suc% 'oo l&3*a*y a+ I.T. fac&l&t&#s &t%out %&c% +o ou3t t%&s o* oul +ot %a# ta#+ t%&s s%a,# &+ co**#ct t&$#.

A!A" LAKRA BATC2 -5II B.A. LL.B. (2 ONS.).

Table of Content ACKNOWLED6EMENTS   ....................................................................................................................7 TABLE OF CONTENTS   ......................................................................................................................8

1. Objectives................................................................. ................................4 2. Research Methodolog.............................................................. ..............4 !. "ntrod#ction.............................................................. ...............................$ 4. %e&nition

of  

'artnershi(............................................................... ..........) $. Ancient 'artnershi(............................................................... ...................* ). +ssentials

of  

'artnershi(............................................................... ............, *. -iabilit

of

Retired

'artner...................................................................... ..., ,. Concl#sion ................................................................ ..............................1! . /ibliogra(h ............................................................. .............................1!

Objective • •

To stuy a3out t%# co+c#,t of R#t&*#$#+t of ,a*t+#* a+ *#lat# ,*o&s&o+ To stuy t%# cas#s *#lat# to t%# R#t&*#$#+t of ,a*t+#*.

Research Methodolog T%&s o* &s descriptive and analytical  &+ +atu*#. S#co+a*y a+ El#ct*o+&c *#sou*c#s %a# 3##+ la*'#ly us# to 'at%#* &+fo*$at&o+ a+ ata a3out t%# to,&c. Boos a+ ot%#* *#f#*#+c#s as 'u&# 3y Faculty of Soc&olo'y %a# 3##+ ,*&$a*&ly %#l,ful &+ '&&+' t%&s ,*o9#ct a f&*$ st*uctu*#. W#3s&t#s a+ a*t&cl#s %a# also 3##+ *#f#**#. Foot+ot#s %a# 3##+ ,*o&# %#*##* +### #&t%#* to ac+ol#'# t%# sou*c# o* to ,o&+t to a  ,a*t&cula* ,*o&s&o+ of la.

"ntrod#ction A ,a*t+#*s%&, &s a+ a**a+'#$#+t &+ %&c% ,a*t&#s a'*## to coo,#*at# to aa+c# t%#&* $utual &+t#*#sts. A 0a*t+#*s%&, &s a+ a**a+'#$#+t &+ %&c% ,a*t&#s a'*## to coo,#*at# to aa+c# t%#&*  $utual &+t#*#st. S&+c# %u$a+s a*# soc&al 3#&+'s ,a*t+#*s%&, 3#t##+ &+&&uals 3us&+#ss &+t#*st 3as# o*'a+&:at&o+s sc%ool 'o#*+$#+ts a+ a*&# co$3&+at&o+. t%#*#of %a# alays  3##+ a+ *#$a&+ co$$o+,lac#. I+ t%# $ost f*#4u#+tly assoc&at# &+sta+c# of t%# t#*$ a  ,a*t+#*s%&, &s fo*$# 3#t##+ o+# o* $o*# 3us&+#ss#s &+ %&c% ,a*t+#*s (o+#*s) co-la3o* to ac%&## a+ s%a*# ,*of&ts a+ loss#s. 0a*t+#*s%&,s ,*#s#+t t%# &+ol# ,a*t&#s &t% s,#c&al c%all#+'#s t%at $ust 3# +a&'at# u+to a'*##$#+t. O#*a*c%&+' 'oals l##ls of '&#-a+-ta# a*#as of *#s,o+s&3&l&ty l&+#s of aut%o*&ty a+ succ#ss&o+ %o succ#ss &s #aluat# a+ &st*&3ut# a+ oft#+ a a*&#ty of ot%#* facto*s $ust all 3# +#'ot&at#. O+c# a'*##$#+t &s *#ac%# t%# ,a*t+#*s%&, &s ty,&cally #+fo*c#a3l#  3y c&&l la #s,#c&ally &f #ll ocu$#+t#. 0a*t+#*s %o &s% to $a# t%#&* a'*##$#+t aff&*$at&#ly #;,l&c&t a+ #+fo*c#a3l# ty,&cally *a u, A*t&cl#s of 0a*t+#*s%&,. It &s co$$o+ fo*  &+fo*$at&o+ a3out fo*$ally ,a*t+#*# #+t&t&#s to 3# $a# ,u3l&c suc% as t%*ou'% a ,*#ss *#l#as# a +#s,a,#* a o* ,u3l&c *#co*s las.

W%&l# ,a*t+#*s%&,s sta+ to a$,l&fy $utual &+t#*#sts a+ succ#ss so$# a*# co+s&#*# #t%&cally  ,*o3l#$at&c. W%#+ a ,ol&t&c&a+ fo* #;a$,l# ,a*t+#*s &t% a co*,o*at&o+ to aa+c# t%# latt#* of t%# I+&a+ 0a*t+#*s%&, Act %as ao,t# t%# #f&+&t&o+ of S&* F*#*&c 0olloc as '&#+ 3#lo? @0a*t+#*s%&, &s #f&+# as t%# *#lat&o+ 3#t##+ to o* $o*# ,#*so+s %o %a# a'*## to s%a*# t%# ,*of&ts acco*&+' to t%#&* *at&o of 3us&+#ss *u+ 3 y all o* a+y o+# of t%#$ act&+' fo* all@. 0#*so+s %o %a# #+t#*# &+to ,a*t+#*s%&, &t% o+# a+ot%#* a*# call# &+&&ually /,a*t+#*s1 a+ coll#ct&#ly /a f&*$1 a+ t%# +a$# u+#* %&c% t%#&* 3us&+#ss &s ca**&# o+ &s call# t%# /f&*$ +a$#1.

T%# #f&+&t&o+ of t%# 0a*t+#*s%&, co+ta&+s t%*## #l#$#+ts? . T%#*# $ust 3# a+ a'*##$#+t #+t#*# &+to 3y all t%# ,#*so+s co+c#*+# 7. T%# a'*##$#+t $ust 3# to s%a*# t%# ,*of&t of a 3us&+#ss a+ 8. T%# 3us&+#ss $ust 3# ca**&# o+ 3y all o* a+y of t%# ,#*so+s co+c#*+# act&+' fo* all. All t%#s# #l#$#+ts $ust 3# ,*#s#+t 3#fo*# a '*ou, of assoc&at#s ca+ 3# %#l to 3# ,a*t+#*s. T%#s# t%*## #l#$#+ts $ay a,,#a* to o#*la, 3ut t%#y a*# +##*t%#l#ss &st&+ct. T%# f&*st #l#$#+t *#lat# to t%# olu+ta*y co+t*actual +atu*# of ,a*t+#*s%&,. T%# s#co+ '&#s t%# $ot&# %&c% l#as to t%# fo*$at&o+ of f&*$ &.#. t%# ac4u&s&t&o+ of 'a&+ a+ t%# t%&* s%os t%at t%# ,#*so+ of t%# '*ou, %o co+uct t%# 3us&+#ss o so as a'#+ts fo* all t%# ,#*so+ &+ t%# '*ou, a+ a*# t%#*#fo*# l&a3l# to accou+t to all.

Ancient 'artnershi(0 Ma+u ,*o&# t%# #a*l&#st *ul#s 'o#*+&+' ,a*t+#*s%&, ty,# a**a+'#$#+ts &+ t%# co+t#;t of ,*&#sts 9o&+tly off&c&at&+' at a sac*&f&c#A$o+' a +u$3#* of ,*&#sts off&c&at&+' at a sac*&f&c# t%# c%&#f $#+ s%all *#c#&# %alf of t%# f## t%os# 3#lo+'&+' to t%# s#co+ '*a# s%all *#c#&# %alf of  t%at t%os# of t%# t%&* '*a# t%# t%&* ,a*t of t%at= a+ t%os# of t%# fou*t% '*a# t%# fou*t% ,a*t. 7 Ma+u La%H7 .5 C.!ssiamma ". State $an% of ysore, AIR  K#* G .6 S#ct&o+ 87(>) 'amnru -ishna -inodh eddy ". Chillan%urru Chandrase%hara eddy (78) 8 SCC >>

oul %a# 3##+ a+ act of t%# f&*$ &f o+# 3#fo*# t%# *#t&*#$#+t u+t&l ,u3l&c +ot&c# &s '&#+ of *#t&*#$#+t? 0*o&# t%at a *#t&*# ,a*t+#* &s +ot l&a3l# to a+y t%&* ,a*ty %o #als &t% a f&*$ &t%out +o&+' t%at %# as ,a*t+#*. I+ cas# of Shivara# v. Patil and $.%. Balakrishanan, It as %#l t%at t%# 3a+ as allo# to &$,l#a t%# ,a*t+#*s %o %a# ta#+ t%# loa+ t%*ou'% t%# #+t&*# l&a3&l&ty of t%# f&*$ %a  3##+ ta#+ o#* 3y a+ot%#* ,#*so+ %o$ t%# 3a+ %a o3 ta&+# a #c*## t%# 3a+ %a +ot a'*## to &sc%a*'# t%# l&a3&l&ty T%# R#t&*# ,a*t+#* s%all co+t&+u# to 3# l&a3l# 3y %ol&+' out fo* a+y act of *#$a&+&+'  ,a*t+#*s %&c% oul %a# 3##+ t%# act of t%# f&*$ &f o+# 3#fo*# *#t&*#$#+t. Suc% l&a3&l&ty co+t&+u#s u, to t%# at# of ,u3l&c +ot&c# 3ut &s co+f&+# o+ly to custo$#*s %o #alt &t% t%# f&*$ u+#* t%# assu$,t&o+ t%at t%# *#t&*# ,a*t+#*s as st&ll a ,a*t+#*. It also o#s +ot #;t#+ to to*ts co$$&tt# 3y t%# *#a$&+' ,a*t+#*s aft#* t%# *#t&*#$#+t of t%# ,a*t+#*s aft#* t%# *#t&*#$#+t +o* to act of &+sol#+cy co$$&tt# 3y t%# co+t&+u&+' ,a*t+#*s. I+ to succ#ss&# cas#s 3#fo*# Ma*as 2&'% Cou*t lo+' aft#* a ,a*t+#*s *#t&*#$#+t &t%out ,u3l&c +ot&c# ot%#*   ,a*t+#*s co$$&tt# acts of &+sol#+cy fo* %&c% t%# *#t&*# ,a*t+#* as also sou'%t to 3# #cla*# a+ &+sol#+t. T%# cou*t *#9#ct# ,a*t+#* as also sou'%t to 3# #cla*# a+ &+sol#+t. T%# cou*t *#9#ct# t%# ,l#a &+ 3ot% cas#s  No ,u3l&c +ot&c# &s %o##* +#c#ssa*y &+ cas# of a #c#as# ,a*t+#* &+sol#+t ,a*t+#* a+ a o$&+a+t ,a*t+#* 7 T%# ,*o&s&o+ to su3-s#ct&o+ (8) of s#ct&o+ 87 cl#a*ly says t%at / a *#t&*#  ,a*t+#* &s +ot l&a3l# to a+y t%&* ,a*ty %o #alt &t% t%# f&*$ &t%out +o&+' t%at %# as a  ,a*t+#*1. I+ a+y cas# 3#fo*# t%# Bo$3ay 2&'% Cou*t7 a ,a*t+#* *#t&*# a+ so$# t%*## y#a*s lat#* t%# co+t&+u&+' ,a*t+#* &+cu**# l&a3&l&ty o+ a 3&ll of #;c%a+'# t%# *#t&*# ,a*t+#* as %#l +ot l&a3l# fo* t%# sa$# 3#caus# t%at ,a*ty su&+' %&$ & +ot +o t%at %# ##* as a  ,a*t+#* &+ t%# f&*$. It as +ot $at#*&al t%at +o +ot&c# of *#t&*#$#+t as '&#+ #&t%#* to t%# R#'&st*a* of t%# f&*$ o* t%*ou'% ,u3l&cat&o+. R#t&*#$#+t of a+ u++o+ ,a*t+#* *#4u&*#s +o  ,u3l&c&ty. T%# Cou*t sa&.77 /T%# *ul# la& o+ &+ t%# ,*o&so #+'*afts a+ &$,o*ta+t #;c#,t&o+ u,o+ t%# '#+#*al *ul# co+ta&+# &+ su3-s#ct&o+ (8). A ,#*so+ %o &s +ot +o+ to 3# ,a*t+#* &+ a f&*$ ca++ot 3# .,  '.-. andhi ". itan/ali, AIR G8 Ma  /+ S#ct&o+ 8 8> a+ 7 *#s,#ct&#ly. /. lorious 'lastics Ltd. ". Laghate &nterprise, AIR 8 Bo*+ 77> // -inaya% 0esha" 'ran/ape ". ena $an%,  AIR  Bo*+ 8H

sa& to o# a+y uty to '&# +ot&c# of %&s *#t&*#$#+t to ,#*so+ %o o +ot +o t%at %# %as 3##+ a ,a*t+#*. T%# ,*o&so &s to t%# #ff#ct t%at ##+ %#+ t%#*# &s a fa&lu*# to '&#  ,u3l&c +ot&c# a *#t&*# ,a*t+#* &ll +ot 3# l&a3l# to a t%&* ,a*ty %o & +ot +o of suc%  ,#*so+ 3#&+' a ,a*t+#* a+ #als &t% t%# f&*$ aft#* suc% *#t&*#$#+t@ I+ t%# cas# of Vinayak $eshav Pran#ape v. &ena Bank  It as %#l t%at +o l&a3&l&ty ca$# to a *#t&*# ,a*t+#* u+#* t%# ac+ol#'$#+t of #3ts 3y t%# co+t&+u&+' ,a*t+#*s 3#caus# t%# ,a*ty to %o$ t%# ac+ol#'$#+t as $a# as aa*# of t%# fact of *#t&*#$#+t. T%# cou*t c&t# t%# follo&+' ,assa'# f*o$ o+# of &ts #a*l&#* #c&s&o+78 /No l&a3&l&ty oul attac% to t%# *#t&*&+' ,a*t+#*s as %# *#t&*# 3#fo*# t%# t*a+sact&o+ a+ as u++o+ to t%# ,la&+t&ff %#+ %# t*a+sact# &t% t%# f&*$7> T%# s&'+&f&ca+c# of t%# #;,*#ss&o+ /#sto,,#l of t%# f&*$1 &s t%at &f t%# *#t&*# ,a*t+#* ta#s c*#&t f*o$ a custo$#* of t%# f&*$ *#,*#s#+t&+' t%at %# &s st&ll a ,a*t+#* of t%# f&*$ t%# f&*$ oul 3# l&a3l# &f t%# act of t%# *#9#ct# ,a*t+#* oul %a# 3##+ a+ act of t%# f&*$ &f o+# 3y %&$ 3#fo*# *#t&*#$#+t.

/0  $haishan%er otiram ". La%shmi yeing #or%s AIR 8 Bo*+ >>(DB). /1  (aladutt . 'illiani ". $ansilal otilal  AIR 7 0C 87

Concl#sion S#c 87 of /I+&a+ 0a*t+#*s%&, Act1 87 #als a3out t%# /R#t&*#$#+t of 0a*t+#*1 t%# co+c#,t of *#t&*#$#+t of ,a*t+#* ca+ 3# co+s&#*# to 3# a &st&+ct f#atu*# of /I+&a+ Co+t*act Act1 3#caus# &t o+ly to,&c %&c% &s t%#*# &+ I+&a La T%# co+c#,t of R#t&*#$#+t of ,a*t+#* &s +ot co#*# &+ E+'l&s% la 0a*t+#*s%&, u+#* E+'l&s% la say a3out &ssolut&o+ of ,a*t+#*s%&, #&t%#* 3y #at% of ,a*t+#* !u&c&al #c*## #tc 3ut &t o#s +ot s,#a a3out *#t&*#$#+t of ,a*t+#*.

/ibliogra(h 

AWTAR  SIN62 LAW OF 0ARTNERS2I0  (t% #. 7G)

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BARE ACT /INDIAN CONTRACT ACT 871

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 S.C. TRI0AT2I 0ARTERNERS2I0 ACT(st #. 7)

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2.0. 6u,ta INDAIN 0ARTNERS2I0 ACT(8* #. 7)