Outgoing Partner Entitled To The Profits: Partnership Act

The Hon'ble Supreme Court ("Hon'ble SC") in its recent judgment¹, held that in an event, a partner is carrying out business with the assets of the firm, he is entitled to his share of profits until a final settlement is made.

Facts of the Case:

The First Respondent (i.e., the Original Plaintiff) instituted Suit No. 286 of 1978 before the Court of the II Additional District Judge, Pondicherry ("Trial Court"), inter alia, for the following:

1. dissolution, settlement of accounts, and distribution of shares of a partnership firm, namely, Crystal Transport Service ("the firm");
2. appointment of a receiver to take charge of the management and assets of the firm until it is wound up; and