In Brief
A widow and legal heirs of a deceased partner in a registered partnership firm sought to recover his share after the surviving partners refused payment. The partnership deed (Clause 14) allowed surviving partners to purchase the deceased's share within three months at a price based on the last annual accounts plus 10% interest per annum. Although the surviving partners served notice of this option, they later disputed whether proper notice reached all heirs and claimed pending litigation justified non-payment. The Supreme Court held that the partnership deed's specific provisions governed the calculation and payment of the deceased partner's dues, not the default statutory rules. Service on the plaintiff-heir and attempted service on others satisfied the notice requirement. The surviving partners' obligation to pay was clear and unconditional, and the plea of pending litigation was not bonafide. The Court upheld entitlement to 1/4th share at 10% interest from the date of death, reversing the High Court's direction for dissolution and 6% interest."
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