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Ketan, Lata and Mohan are partners at will in a Surat textile firm. Lata writes to both Ketan and Mohan, giving written notice of her intention to dissolve the firm. The letter mentions no date of dissolution and is communicated to them on 10 March. From when is the firm dissolved?

The firm is dissolved from 10 March, the date the notice was communicated. Under Section 43(2), when the notice names no dissolution date, dissolution takes effect from the date of communication. The other partners' consent or any registration step is not a condition for dissolution.

  1. AFrom 31 March, the end of the financial year
  2. BFrom the date of the communication of the notice, 10 MarchCorrect
  3. CFrom the date when Ketan and Mohan consent to the dissolution
  4. DFrom the date when the notice is recorded with the Registrar

Explanation

Section 43(2) provides that 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 was mentioned, so the date of communication, 10 March, applies. Consent of the other partners is not needed.

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