Write a short note on Public Notice under Partnership Act.
Section 72 lays down the manner and the cases in which the public notice of certain matters relating to partnership firm is to be given. According to it, public notice must be given in the following cases:
- On retirement or expulsion of a partner from a registered firm.
- On the dissolution of a registered firm.
- On the election of a minor to become or not to become a partner on attaining majority.
The modes in which the public notice relating to the above matter is to be given are as follows :
- By notice to the Registrar of firm under Section 63.
- By, publication in the Official Gazette.
- By publication in at least one vernacular newspaper circulating in the district where the firm to which it relates has its place or principal place of business.
Consequences where public notice is not given
If a minor admitted to benefits of partnership fails to give public notice within six months of his attaining majority or of his coming to know about his admission to the benefits of partnership, whichever date is later, of his elected to become or not to become a partner, he becomes a partner in the firm on the expiry of the said period and shall be liable as a partner.
If a partner does not give a public notice of the retirement, he and the other partners shall continue to be liable as partners to third parties for any act done by any of them which would have been an act of the firm if done before retirement.
If in case of expulsion of a partner, a public notice is not given, the expelled partner and other partners shall continue to be liable to third parties dealing with the firm as in the case of a retired partner.
If on dissolution of a registered firm a public notice is not given, the partners shall continue to be liable to third persons for any act done by any of them which would have been an act of the firm done before dissolution.