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Section 32 of Indian Partnership Act, 1932
Section 32 of Indian Partnership Act, 1932 deals with Retirement of a partner.
From the Act
(1) A partner may retire-
(a) with the consent of all the other partners,
(b) in accordance with an express agreement by the partners, or
(c) where the partnership is at will, by giving notice in writing to all the other partners of his intention to retire.
(2) A retiring partner may be discharged from any liability to any third party for acts of the firm done before his retirement by an agreement made by him with such third party and the partners of the reconstituted firm, and such agreement may be implied by a course of dealing between such third party and the reconstituted firm after he had knowledge of the retirement.
(3) Notwithstanding the retirement of a partner from a firm, he and the partners continue to be liable as partners to third parties for any act done by any of them which would have been an act of the firm if done before the retirement, until public notice is given of the retirement:
Provided that a retired partner is not liable to any third party who deals with the firm without knowing that he was a partner.
(4) Notices under sub-section (3) may be given by the retired partner or by any partner of the reconstituted firm.
Recent Cases / Related Cases / Case Law
Related Sections from the Act
- Section 31: Introduction of a partner
- Section 33: Expulsion of a partner
- Section 34: Insolvency of a partner
- Section 35: Rights of outgoing partner to carry on competing business
- Section 36: Rights of outgoing partner to carry on competing business
- Section 37: Right of outgoing partner in certain cases to share subsequent profits
- Section 38: Revocation of continuing guarantee by change in firm