Supreme Court rules outgoing partner's share valued on assessment date, not dissolution date
The case concerns a dispute over the valuation date for an outgoing partner's share in a dissolved partnership firm, specifically whether the share should be valued on the date of dissolution or the date of assessment under the Indian Partnership Act, 1932.
Appellants: V. Sumitra Reddy & Anr.; Respondents: K. Ranganadha Reddy & Ors.; Bench: Justice Ujjal Bhuyan.
- The Court is interpreting Sections 46 and 48 of the Indian Partnership Act, 1932 in the context of Sections 7 and 43.
- The High Court had previously held that the outgoing partner is entitled to a share of profits out of the assets and that the value of movable and immovable properties must be ascertained.
- The High Court set aside a review order dated 26.04.2004 that had limited the plaintiff's rights to profits only up to the date of dissolution.
- The High Court directed that if the remaining partners do not pay the plaintiff's share, the properties must be sold and proceeds distributed rateably.
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Document details
| Official title | Partnership Act | Outgoing Partner's Share Must Be Valued On Date Of Assessment, Not Date Of Dissolution : Supreme Court |
| Source body | Supreme Court of India — orders & judgments |
| Reference number | — |
| Status | closed (order) |
| Year | 2026 |
| Closing date | — |
| Documents | 1 |