Under the Indian Partnership Act, 1932: S.10 Every partner shall indemnify the firm for any loss caused to it by his fraud in the conduct of the business of the firm.
Further, the Act also provides that a Partnership firm may be dissolved under the following circumstances namely (a) as a result of any agreement between all the partners (b) by adjudication of all the partners or all partners but one as insolvent, or (c) by the happening of an event which makes it unlawful for the business of the firm to be carried on in Partnership or (d) subject to agreement between the parties, on the happening of any of the following events such as (i) efflux of time, (ii) completion of the adventure, (iii) death of a partner, and (iv) insolvency of a partner. In these last four cases the Partnership agreement may provide events. Even if the deed provides that the Partnership will not be dissolved on the death or insolvency of a partner, it does not mean that on the death or insolvency of a partner he ceases to have interest in the Partnership property. In such cases his interest in the Partnership property will survive to his heirs in case of his death and to his assignees in case of insolvency. In the absence of a term in the deed of Partnership to that effect, it cannot be that, the Partnership shall continue, and notwithstanding the death of a partner it will operate to extinguish his proprietary rights in the assets of the Firm.
Hence you can proceed against the heirs of the deceased partner.