A Partnership firm consist of 3 partners A, B, C and owe 'R' sum of Rs 15000/- A wants to retire. It is agreed amongs' all the three partners & R that after retirement of A, B & C as continuing partners shall be liable for the dues of R. After retirement of A, R sues 'A' for recovery of Rs 15,000/-
Verified Answer
A. R has a right to sue 'A' to the extent of Rs 5000/-being portion attributable to 'A'
B. R has no right to sue 'A' as after retirement of 'A' a new agreement came into being b/w R and the firm & 'A' stood discharged of his liability towards 'R'
C. 'R' can sue firm consisting of B & C along with 'A' as liability of all the partners is joint & several
D. R has an option to sue firm consisting of B & C or retired partner A
Explanation:
This is a case of novation under Section 32(3) of the Indian Partnership Act, 1932. A retiring partner may be discharged from any liability to any third party for acts of the firm done before his retirement by an agreement made by him with such third party and the partners of the firm as newly constituted. The problem explicitly states such an agreement was made between A, B, C, and R, discharging A from his liability.