Suit filed against firm and its three partners was decreed - No agreement with third party and partners of reconstituted firm Public notice of retirement Modes of public notice contemplated u/s.72 not followed-Retiring partner cannot escape.

Citation 

2007 (3) CTC 356 (Mad)

2007 (3) LW 1009

2007 (3) MLJ 641

IN THE HIGH COURT OF MADRAS

K. Venkataraman, J.C.R.P.(NPD) No.1693 of 2005 and C.M.P. No. 15013 of 2005.April 20, 2007

B. Narashimha Rao...Petitioner

...Vs...

T. Raghavalu Naidu & Company, Rep. by Its Partner, T. Raghavalu Naidu, No.16, Chinnathambi Mudali Street, Chennai-600 079...Respondent

Partnership Retiring Partner Liability to third party When discharged Conditions No agreement with third party and partners of reconstituted firm Public notice of retirement Modes of public notice contemplated u/s.72 not followed-Retiring partner cannot escape liability.Public Notice Modes ofs.72, Partnership Act.

Partnership Act, 1932 (9 of 1932), Sections 32 & 72-Liability of retiring partner to third parties - Retiring partner may be discharged of his liabilities to any third party for acts of firm done before his date of retirement by agreement with third party and with partners of reconstituted firm Partner would continue to be liable to third parties even after retirement until he gives public notice of his retirement Retirement or dissolution or expulsion of partner should be publicly notified Such public notification has to be in three modes viz (a) Retirement or expulsion or dissolution must be notified to Registrar of Firms (b) It should be published in Official Gazette and (c) It should be published at least in one vernacular newspaper circulated in District where firm does business Suit filed against firm and its three partners was decreed and in execution one defendant claimed that he plaintiff and partners of reconstituted firm and he had failed to give effect to retirement in above said three modes Order of Executing Court in dismissing Petition filed under Section 47 of Code of Civil Procedure confirmed. [Para 7, 10 & 13