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Introduction to Dissolution

A, B,C, D and...

Question

A, B,C, D and E re partners in a firm. They decided to dissolve the firm from 1st January 1999 but failed to give a public notice of its dissolution and continued the business of the firm even after that date 0 died on 5th January 1999 and E was declared insolvent on 18 th January 1999. On 11th January 1999,. A borrowed in the firms name Rs. 20,000 from R who was ignorant of the dissolution. Discuss the liability of partners fort 20,000:

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Solution

Solution: Section to which the given problem relates; Section 45.
Decision: A, B and C are liable but the estate of Band E are not liable for ? 20,000.
Reason: Partners continues to be liabile third parties for any act done by of them after the dissolution until public notice is given of the dissolution but this provision is not applicable to the estate of deceased partner, insolvent partner and dormant partner who had retired:

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