Partnership - Retirement and dissolution - There is a clear distinction between ‘retirement of a partner’ and ‘dissolution of a partnership firm’ - On retirement of the partner, the reconstituted firm continues and the retiring partner is to be paid his dues in terms of Section 37 of the Partnership Act - In case of dissolution, accounts have to be settled and distributed as per the mode prescribed in Section 48 of the Partnership Act - When the partners agree to dissolve a partnership, it is a case of dissolution and not retirement - A partnership firm must have at least two partners - When there are only two partners and one has agreed to retire, then the retirement amounts to dissolution of the firm - In the present case, there being only two partners, the partnership firm could not have continued to carry on business as the firm. #2020 SCeJ 1383
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