SYNDICATE BANK versus M/S. R.S.R. ENGINEERING WORKS AND ORS.
Retiring partners remain liable to third parties for liabilities incurred prior to retirement unless there is an express or implied agreement discharging them or public notice is given. In the absence of such agreement or notice, liability continues.
- Parties
- Appellant: Syndicate Bank; Respondent: R.S.R. Engineering Works; Respondent: Respondent No. 2; Respondent: Respondent No. 3; Respondent: Respondent No. 4
- Jurisdiction
- India
- Judgment Date
- 09 May 2003
- Procedural Posture
- Civil Appeal / Final Judgment
- Outcome
- Appeals allowed; decree modified
- Legal Topics
- Retirement of Partners, Liability of Retiring Partners, Agreement With Creditors, Public Notice, Joint and Several Liability
Case Brief
Summary, issues, holding and outcome
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Parties
Syndicate Bank
Appellant
R.S.R. Engineering Works
Respondent
Respondent No. 2
Respondent
Respondent No. 3
Respondent
Respondent No. 4
Respondent
Procedural Posture
Civil Appeal / Final Judgment
Legal Issues
- 1 Whether retiring partners can be absolved from liability to third parties in absence of an agreement or public notice.
- 2 Effect of dissolution and reconstitution of partnership on creditor rights.
Ratio Decidendi
Retiring partners remain liable to third parties for liabilities incurred prior to retirement unless there is an express or implied agreement discharging them or public notice is given. In the absence of such agreement or notice, liability continues.
Court Disposition
Appeals allowed; decree modified
Orders
- There shall be a decree against all respondents in both suits.
- Appeals allowed with costs.
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