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CSEET · Business Laws and Management · Elements of Law relating to Partnership and Limited Liability Partnership

Ramesh, Suresh and Naresh run a partnership at will. Naresh wants to retire but Ramesh and Suresh do not consent, and the partnership deed has no clause on retirement. Which statement is correct under Section 32 of the Indian Partnership Act, 1932?

Naresh can retire by giving written notice to all the other partners, because the partnership is at will. Section 32(1)(c) permits this, so the consent of Ramesh and Suresh is not required and no court permission or registration is needed.

  1. ANaresh cannot retire without the consent of all the other partners
  2. BNaresh can retire only after a court permits him
  3. CNaresh can retire only after the firm is registered
  4. DNaresh can retire by giving written notice to all the other partnersCorrect

Explanation

Section 32(1)(c) says that where the partnership is at will, a partner may retire by giving notice in writing to all the other partners of his intention to retire. Consent is needed only under clause (a), which applies where no other route exists, so the first option is wrong.

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