Whether retiring partner will continue to be liable as partner to third parties for any act done by any other partners if notice of retirement is not published official Gazette?

This section provides that a retiring partner will continue to be liable as a partner to third parties for any act done by any other partners which would have been an act of the firm if done before the retirement till public notice is given for the retirement. Section 72 of the Indian Partnership Act prescribes the mode of giving public notice under the Act. Under this Section, notice of the retirement has to bo given to the Registrar of Firms under Section 63 and publication has to be made in the Official Gazette and at least in any vernacular newspaper circulating in the district where the firm to which it relates has its place or principal place of business. In this case, it may be noticed, that notice of retirement is published in three dailies one in English and two in Telugu, circulating in the district to which the place of business of the 11th defendant-firm belongs. Notice is also given under Section 63 of the Act to the Registrar of Firms; but admittedly, the publication was not made in the Official Gazette. Therefore it is dear that the requirement of Section 32, Clause (3) read with Section 72, Clause (a) of the Act is not satisfied in this case. The learned counsel for the appellants argues that Section 72 indicates only one mode of giving public notice and does not exclude any other mode of giving public notice under Section 32, Clause (3). We find it difficult to accept this contention.

Andhra High Court

Thummala Rama Rao And Ors. vs Chodagam Venkateswara Rao And ... on 14 July, 1961

Equivalent citations: AIR 1963 AP 154

Bench: Seshachelapathi, C Sastry

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