Gill v Sandhu

Gill v Sandhu

The outgoing partner's entitlement under section 42 is to a share of profits attributable to his proprietary share in the partnership assets at the date of dissolution, not limited to net assets after liabilities. The Master was correct to award Mr Sandhu a half share of profits, subject to a fair allowance for Mr Gill's services.

Parties
Appellant/defendant: Hardip Singh Gill; Respondent/claimant: Kulbir Singh Sandhu
Jurisdiction
England and Wales
Judgment Date
26 January 2005
Procedural Posture
Civil Appeal / Judgment on Appeal From Master Bowles' Decision
Outcome
Appeal dismissed
Legal Topics
Outgoing Partner's Entitlement, Section 42 Partnership Act 1890, Profit Sharing After Dissolution, Construction of Partnership Assets
Partnership Law Outgoing Partner's Entitlement Section 42 Partnership Act 1890 Profit Sharing After Dissolution Construction of Partnership Assets

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Parties

Hardip Singh Gill

Appellant/defendant

Kulbir Singh Sandhu

Respondent/claimant

Procedural Posture

Civil Appeal / Judgment on Appeal From Master Bowles' Decision

Legal Issues

  1. 1 Meaning of 'share of the partnership assets' under section 42 of the Partnership Act 1890
  2. 2 Entitlement of outgoing partner to profits made by continuing partner after dissolution
  3. 3 Proper calculation of share of profits attributable to outgoing partner

Ratio Decidendi

The outgoing partner's entitlement under section 42 is to a share of profits attributable to his proprietary share in the partnership assets at the date of dissolution, not limited to net assets after liabilities. The Master was correct to award Mr Sandhu a half share of profits, subject to a fair allowance for Mr Gill's services.

Court Disposition

Appeal dismissed

Orders

  • Mr Sandhu entitled to a half share of profits made by Mr Gill after dissolution, subject to a fair allowance for Mr Gill's services
  • Interim payment of £25,000 to Mr Sandhu upheld