(Querist) 06 May 2008
This query is : Resolved
A company was formed under partnership, when four partners were in the company during the course of buisness two partners were dead, and the third partner was already retired from the company, the fourth partner was only a silent partner till the death of the two partners,now the company is in not engaged in any buisness , but the libilities are overdue than the asserts of the company , WHAT WILL BE THE POSITION OF THE FOURTH PARTNER..?
(Expert) 06 May 2008
A partner is jointly and severely responsible for all the liabilities of the firm, and hence the surviving partner (also the heirs of the deceased partners) are jointly and severely liable for the debt of the firm.
J K Agrawal
(Expert) 10 May 2008
As per section 42 of The Indian Partnership Act 1932 on first death of a partner, the firm dissolved and as per section 45 all the remaining partners and heirs of deceased partner are liable for third person. It makes no difference that if the partner was acting one or sleeping