Dissolution of Partnership on Adjudication of a Partner as an Insolvent in India and Garner v Murray Case Judgment
Keywords:Garner v. Murray Rules, Partnership, Insolvency
On adjudication of a partner as an insolvent in India, provision of Section 34 of Indian Partnership Act, 1932 is applicable for safeguarding the interest between insolvent partner and firm. Judgment in case of Garner v Murray held at England in 1905, which was based upon Section 44 of United Kingdom Partnership Act, 1890. In India, provision of Section 48 of Indian Partnership Act, 1932 are applicable on dissolution of firm on adjudication of a partner as an insolvent. Provision of section 44 of United Kingdom Partnership Act, 1890 and Section 48 of Indian Partnership Act, 1932 are similar or the mirror image of each other. Therefore, on adjudication of partner as an insolvent, if firm is dissolved and partnership deed is silent to the contrary then, it is safe to apply the judgment in Garner v Murray case in India until Indian court rules against it.