Legal Heirs Of Deceased Partner Do Not Become Liable For Liability Of Partnership Firm Upon Partner's Death: Supreme Court

Recently, the Supreme Court held that the legal heirs of a deceased partner do not become liable for any liability of the firm upon the death of the partner.

The case relates to the recovery of the investment made by the complainant in the partnership firm from the legal heirs of the deceased partner of the firm under the Consumer Protection Act of 1986. The complainant sought to recover the investment from the appellants/ legal heirs of the deceased partner on the note that the legal heirs had inherited the estate of the deceased partner and hence cannot escape the liability of making the payment due to the complainant/respondent no.1

Setting aside such a complaint, the Bench Comprising Justices Vikram Nath and Satish Chandra Sharma stated that the liability of the deceased partner does not pass on to its legal heirs. Hence, the complaint seeking recovery of the investment from the deceased partner's legal heirs would not be maintainable.

"there was no evidence on record to show that a fresh partnership deed was executed reconstituting the firm in which the present appellants had become partners so as to take upon themselves the assets and liabilities of the firm. The law is well settled that legal heirs of a deceased partner do not become liable for any liability of the firm upon the death of the partner.", the Judgment authored by Justice Vikram Nath observed.

Also Read: Commercial Transactions Outside Purview Of Consumer Protection Act 1986: Supreme CourtP

Counsel For Petitioner(s) Mr. C.B.Gururaj, Adv. Mr. Prakash Ranjan Nayak, AOR Mr. Animesh Dubey, Adv. Mr. Debendra Ghosal, Adv.

Counsel For Respondent(s) Mr. Chinmay Deshpande, Adv. Mr. Anirudh Sanganeria, AOR

Case Title: ANNAPURNA B. UPPIN & ORS. VERSUS MALSIDDAPPA & ANR.

Citation : 2024 LiveLaw (SC) 284

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