A, B and C are partners in a firm. C retires and X is admitted as a new partner. The firm did not give…

Under section 32(3) of the Indian Partnership Act, 1932, a retiring partner remains liable to third parties for acts of the firm done before public notice of his retirement, so C remains liable to Z as an apparent partner; X is liable as an actual partner for acts of the firm done after his admission. Under the rule in Scarf v Jardine (1882), Z must elect between them: he "can sue either A, B and C, or, A, B and X", but cannot hold C and X liable together, as they were never partners at the same time. Suing all four together, or A and B alone, misstates this choice.