Question

Choose the correct answers from the alternatives given.
Public notice of retirement must be given ________.

• A. only by the retiring partner only
• B. only by any partner other than retiring partner
• C. by retiring partner or any of the other partners
• D. none of these

Answer 1

Answer: (C)

by retiring partner or any of the other partners

If a partner retires, without giving public notice, he continues to be liable as a partner by holding out. If a Dormant partner retires without giving any public notice, he cannot be held liable as a partner by holding out. If no notice of retirement of a partner is given to the third parties and, if they continue to supply goods or funds to the reconstituted firm, they can either hold th old firm or the new firm liable.

Public notice regarding the retirement of the partner may be given by the retired partner or by other partner of the reconstituted firm as per section 32 (4) of the Indian Partnership Act, 1932.