Rendition of Accounts - When a partner of a firm dies or ceases to be a partner and surviving partners or continuing partners carry on business without final settlement of accounts as between them and outgoing partner or his estate, profits and goodwill are payable even after dissolution of firm.

Citation 

2011 (1) CTC 546 (Mad)

IN THE HIGH COURT OF MADRAS

D. Murugesan and Vinod K Sharma, 11.

R.A. No.142 of 2006 in O.S.A. No.278 of 1997.

December 10, 2010

Rajalakshmi; S. Gajalakshmi                                                           ...Petitioner

Vs. 

 

Sarojini, Recorded as Legal Representative of the Deceased 1st Defendant; Bhagavathi

...Defendant

Indian Partnership Act, 1932 (9 of 1932), Sections 14 & 37 Rendition of Accounts Whether payable by continuing partners to outgoing partner or deceased partner's estate - When a partner of a firm dies or ceases to be a partner and surviving partners or continuing partners carry on business without final settlement of accounts as between them and outgoing partner or his estate, profits and goodwill are payable even after dissolution of firm on account of death or exit of one of partners till such time goodwill exists - Ratio laid down in 2005 (3) CTC 308 (DB) reviewed and set aside.