National Legal Services Authority v. Union of India DATE OF JUDGMENT: 15/04/2014 COURT: Supreme Court of India JUDGES: K.S. Radhakrishnan, A.K. Sikri REFERENCE: WRIT PETITION (CIVIL) NO.400 OF 2012 PARTIES Petitioner: National Legal Services Authority Respondent: Union of India SUBJECT:…
Sale of goodwill after dissolution (Section 55) a) In settling the accounts of a firm after dissolution, the goodwill shall, subject to contract between the partners, be included in the assets and it may be sold either separately or along…
Rights of rescission of partnership contract (Section 52) When a partner rescinds a contract of partnership and leaves the firm on the ground of fraud or misrepresentation of the other partners are his interest is protected under Section 52. Apart…
Return of premium on premature dissolution (Section 51) – If a person pays a premium to become a partner for a certain specified period, but partnership ends before the expiry of that term, he is entitled to refund of premium.…
Personal profits earned after dissolution (Section 50) According to Section 16(a) no partner can make a personal gain out of any transaction of the firm, or the use of the name, property or business connection of the firm, if he…
Mode of settlement of accounts Section 48 In settling the accounts of the firm after dissolution, the following rules shall, subject to agreement by partners be observed – a) Losses, including deficiencies of capital, shall paid first out of the…
Liability of acts done after dissolution Section 45(1) states that notwithstanding the dissolution of the firm, the partners continues to be liable as such to third parties for any act done by any of them which would have been the…
Dissolution by Court (Section 44) Section 44 which permits a partner to invoke the jurisdiction of the court to dissolve a firm is not subject to contract between the partners. But, if there is a term in contract that the…
DISSOLUTION OF A FIRM Section 39 of Indian Partnership Act, defines ‘Dissolution of Firm’ as “the dissolution of partnership between all the partners of a firm is called ‘dissolution of firm’.” This is used to denote that there is a…
Revocation of continuing guarantee – Section 38 In any contract of guarantee, it is necessary that subsequent to making of a contract the term should not be varied. Any variance in terms without surety’s consent discharges the surety from liability…