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RU
Karnataka HC: Death of Partner Dissolves Firm; Legal Heirs Cannot Become Partners Automatically
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The dispute arose from a commercial suit filed for recovery of ₹18.90 lakh with interest against a registered partnership firm.
Therefore, an heir cannot become a partner merely because he or she succeeds to the estate of the deceased partner.
The Trial Court’s order permitting the legal heirs to be brought on record was therefore set aside and the plaintiff’s memo was rejected.
Key principle: In a two-partner firm, death of one partner brings the partnership to an end by operation of law.
A clause saying that the firm shall continue with the deceased partner’s legal heirs cannot override this consequence or make the heirs partners automatically.