Sanskriti Goel Intern At ubAdvocate- https://www.linkedin.com/company/ubadvocate sanskriti170902@gmail.com Link for Form of Internship https://docs.google.com/forms/d/e/1FAIpQLSf8jPG1A9M16ajCafp3XRabM_O-eu8-koFIjFleosYl1l5h8w/viewform?usp=pp_url Retirement of a partner | Section 32 of The Indian Partnership Act, 1932 "Section 32 of the Indian Partnership Act, 1932 lays down different ways in which a partner may retire form the firm and it also provides the liability of the retiring partner for the acts done before and after his retirement. As per Sub-section (1) there are three different ways in which a partner may retire from the firm. A partner may retire from the firm: (a) with the consent of all the other partners; or (b) in accordance with an express agreement; or (c) where the partnership is at will, by giving notice in writing to all the other partners of his intention to retire. Sub-section (2) provides for liability for acts of the firm done up to retirement. A retired partner remains liable to the creditors for acts of the firm done before his retirement. But, a retired partner could be discharged from such liability by agreement between the partners (including the retiring partner) and the third party. There can be no retirement from liability for wrongful acts. In Thomas Bear & Sons Ltd. v. Rulia Ram (AIR 1934 Lah 625), a suit was filed against a firm for the infringement of the trade mark. All the partners who were members of the firm at the time of infringement were held liable though the suit was instituted after one of them had retired. Sub-sections (3) & (4) provides for liability for acts of the firm done after retirement. A retired partner continues to be liable to third parties for acts of the firm, after his retirement, until public notice of his retirement , either by himself or by the other partners. If personal notice is given, there is no need for public notice. In Bichhiah Lal v. Munshi Ram (ILR 1922 Lah), it was held that a retired partner, who has not given public notice of retirement, can still defend himself by proving that the person suing him had knowledge of his retirement. No public notice is needed in case of deceased, insolvent and dormant partner. Semi-dormant partners liable to only those customers who had knowledge of him being a partner. Rights of retiring partner: Section 36: Right to carry on competing business— A retiring partner may carry on a business competing with that of the firm; and he may advertise such business. But , subject to contract to the contrary, he may not:- (a) use the firm name, (b) represent himself as carrying on the business of the firm, or (c)solicit the custom of persons who were dealing with the firm before he ceased to be a partner. Section 37: Right in case of no final settlement of accounts— The retiring partner can claim either share of profit attributed to use of his share of property of the firm; or Interest @ 6% p.a. on the amount of his share in the property of the firm. " #internshipopportunity #legaleducation #lawstudents #lawinternship