Section 45 Liabilities after Dissolution of IPA
Section 45 of the Indian Partnership Act, 1932 deals with the liability for acts
of partners done after the dissolution. Liabilities are:
The partners continue to be liable to the third party until the public
notice of the dissolution is given, it will not be applied to the partner
who is dead or the partner who is insolvent or to the sleeping
partner or to the retired partner.
After the dissolution of the partnership, the partner is liable to pay
his debt and to wind up the affairs regarding the partnership.
After the dissolution, partners are liable to share the profit which
they have decided in agreement or accordingly.
Case law
N. Guruva Reddy vs The District Registrar (1976)
In this case, Guruva Reddy, son of Chenchu Rami Reddy and other six
persons and legal heirs of Smt. P. Sri Devamma was carrying a partnership
business. The legal representative and five other partners show their desire
to retire from the partnership.
A dissolution of the partnership was executed. The dissolution was executed
on the stamp paper. In the end, it was said that a charge was created in
favour of the partners in the respective amount, which are payable under the
deed of the dissolution.
