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CMA Intermediate · Business Laws and Ethics · Indian Partnership Act, 1932

A, B and C run a partnership at will. On 1 March, A sends a written notice to B and C stating that he intends to dissolve the firm, but the notice mentions no date of dissolution. The notice is communicated to B and C on 10 March. From which date is the firm dissolved?

The firm is dissolved on 10 March. Under Section 43, when a notice of dissolution of a partnership at will mentions no date, dissolution takes effect from the date the notice is communicated to the other partners, not the date it was written.

  1. A1 March, the date A wrote the notice
  2. B10 March, the date of communication of the noticeCorrect
  3. C31 March, the end of the month
  4. DA date fixed by the Registrar

Explanation

Under Section 43, the firm is dissolved from the date mentioned in the notice or, if no date is mentioned, from the date of communication of the notice. No date is mentioned here, so the date of communication, 10 March, applies. The date of writing, 1 March, is not the test.

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