Inheritance of retired partner
Querist :
Anonymous
(Querist) 04 January 2026
This query is : Resolved
Father and son are partners of a registered partnership firm with a property. Father retired after inducting grandson as partner. After demise of father can his daughter claim their share in the property of firm. Please clarify
kavksatyanarayana
(Expert) 04 January 2026
Both the father and the son entered into a partnership business with property. So the property is in the name of the firm. At the time of retirement of the father, his share of profits/losses, if any, should have been transferred to him. If not transferred to the father's account, then the legal heirs have equal rights in his share. So, in the business firm, the daughter has no right in it.
Querist :
Anonymous
(Querist) 04 January 2026
After retirement of father final balance arrived after all process has been transferred to his bank account.
Querist :
Anonymous
(Querist) 04 January 2026
After retirement of father final balance arrived after all process has been transferred to his bank account.
T. Kalaiselvan, Advocate
(Expert) 04 January 2026
This situation turns on how the property was held and what documents exist, not merely on family relationship.
Under the Indian Partnership Act, 1932:
Property standing in the name of the partnership firm and used for firm business is firm property, not personal property of partners.
A partner does not own a specific share in each asset of the firm.
A partner only has a right to his share in profits and, on retirement/dissolution, to the value of his share, not to the property itself.
T. Kalaiselvan, Advocate
(Expert) 04 January 2026
When the father retired after inducting the grandson if a valid retirement deed exists father ceased to have any interest in the partnership property from the date of retirement.
His rights would be limited to:
Settlement amount (capital + goodwill, if any). As agreed in the retirement deed, once settled, the firm property is no longer part of his estate.
Dr. J C Vashista
(Expert) 05 January 2026
The property / accounts pertain to partners, which shall not devolve upon legal heirs of a deceased partner.
Daughter has no claim, right or interest in the property of partnership firm as per facts posted.
Partnership deed is required to be perused to form proper opinion and oblige.
It is better to show the deed to a local prudent lawyer for proper analyses and professional advise.
Querist :
Anonymous
(Querist) 05 January 2026
Thank you very much gentleman
