A partner of a firm constituted for a fixed term wishes to retire. There is no agreement between the partners on retirement. Under section 32(1)(a) of the Indian Partnership Act, 1932, what does he…
Question and options
A partner of a firm constituted for a fixed term wishes to retire. There is no agreement between the partners on retirement. Under section 32(1)(a) of the Indian Partnership Act, 1932, what does he need?
Leave of the court on a petition
Consent of partners holding most of the capital
Consent of all the other partners
Consent of a majority of the other partners
Answer and explanation
Section 32(1)(a) of the Indian Partnership Act, 1932 allows a partner to retire with the consent of all the other partners. Section 32(1)(b) allows retirement under an express agreement, and section 32(1)(c) allows it by written notice only in a partnership at will, so neither helps here. A majority of partners decides only ordinary matters, and the court's role under section 44 is to dissolve a firm, not to permit retirement.
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