Under the Indian Partnership Act, 1932, a Partnership firm consist of 3 partners A, B, C and owe 'R'…
Under s.32(2) of the Indian Partnership Act, 1932, a retiring partner "may be discharged from any liability to any third party for acts of the firm done before his…
Choose your answer
Under the Indian Partnership Act, 1932, a Partnership firm consist of 3 partners A, B, C and owe 'R' sum of Rs 15000/- A wants to retire. It is agreed amongst all the three partners & R that after retirement of A, B & C as continuing partners shall be liable for the dues of R. After retirement of A, R sues 'A' for recovery of Rs 15,000/-
Answer and explanation
Correct answer B
Under s.32(2) of the Indian Partnership Act, 1932, a retiring partner "may be discharged from any liability to any third party for acts of the firm done before his retirement by an agreement made by him with such third party and the partners of the reconstituted firm". R joined in such an agreement, so A is discharged and R must look to B and C; he cannot sue A for the whole debt, for a share of it, or as an alternative defendant.
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