The following is a brief introduction to the topic:
Dissolution of a Partnership under The Indian Partnership Act, 1932, “Partnership Act” can have far-reaching consequences, affecting not only the erstwhile partners but also related third parties. The process of dissolution involves activities such as settling of accounts, concluding of on-going business matters, discharging the Partnership firm’s liabilities and finally, distributing any remaining assets among the partners basis their respective shares. The Limitation Act, 1963 provides a period of three years from the date of dissolution within which the parties can agitate their claims arising from the dissolution and winding up of the firm. The period of limitation rests on the notion that the date of dissolution marks the conclusion of the firm’s winding-up process and settling of the rights and liabilities of the affected parties. Is dissolution the same as winding up a firm? Former partners may not have the right to pursue their claims if the winding up process is not completed in the three-year period. This blog will be used to analyze whether there are any unresolved claims that have survived the three-year period.