Tag: Section 72 Partnership Act

The Supreme Court held that a partner's retirement from a registered firm under the Indian Partnership Act, 1932, requires strict compliance with Section 72—including public notice publication and Registrar of Firms updates—to absolve liability under Section 138 of the Negotiable Instruments Act, 1881. Non-compliance renders retirement legally ineffective. The High Court erred under Section 482 CrPC by deciding factual disputes (e.g., retirement date/liability) prematurely, as these require trial evidence. Signatory status is irrelevant for partner liability under Section 141 NI Act if involvement in firm affairs is alleged. Facts Of The Case: Shivappa Reddy (Appellant) filed a criminal complaint under Section 138 of the Negotiable Instruments Act, 1881, against M/s AVS Constructions (Ac...