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TMI Blog2001 (1) TMI 942X X X X Extracts X X X X X X X X Extracts X X X X ..... tries. The copy of the unregistered partnership deed is found at annexure 3. It so happens that the said partnership-firm defaulted in making payment of the requisite tax payable under the provisions of the Tripura Sales Tax Act, 1976 (hereinafter referred to as "the Act"). For the purpose of recovery of the said amount of tax being Rs. 3,21,633.70 paise, notice dated August 5, 1991 (annexure 4 to the writ petition) was issued to the Director of Food and Civil Supplies, Government of Tripura, respondent No. 3, as per provisions of section 26-A of the Act. A copy of the said notice was also served upon the petitioner. In reply, the petitioner submitted his representation dated August 12, 1991 (annexure 5 to the writ petition) to the Superint ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tice of retirement from the partnership on February 18, 1991 (annexure 2 to the writ petition) wherein it was intimated that he intended to retire from partnership with effect from April 1, 1991 and it was further intimated that partnership be accordingly dissolved by mutual consent on and from 1st day of April, 1991. Thus, main thrust of the argument of the learned Senior Counsel of the petitioner is that the firm was a partnership at will and it was dissolved by the aforesaid notice or the petitioner had retired from the partnership with effect from April 1, 1991. Thus, the petitioner is not at all liable for payment of any tax under the provisions of the Act. 5.. Mr. Saha, the learned Senior Government Advocate for the respondents on ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the petitioner had retired with effect from April 1, 1991 the relevant portion of the partnership deed, i.e., clause 15 regarding retirement of a partner and clause 17 regarding dissolution of the partnership are reproduced below: "Clause 15: That if at any time during the continuance of the partnership of any of the parties desire to retire from the partnership, he/she may do so on giving the others of them at least two months written notice and shall be paid by the remaining parties such sum, if any, found due to him/her on taking proper accounts up to the date of retirement. Unless otherwise agreed, the retiring partner shall remain liable to any according to his/her share the income-tax and/or other imposition that may be assessed on ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... titioner as partner of the firm after the date of retirement. 9. The provision regarding retirement is contained in section 32 of the Indian Partnership Act, 1932 and the same is reproduced below: "32. Retirement of a partner.-(1) A partner may retire- (a) with the consent of all the other partners, or (b) in accordance with an express agreement by the partners, or (c) where the partnership is at will, by giving notice in writing to all the other partners of his intention to retire. (2) A retiring partner may be discharged from any liability to any third party for acts of the firm done before his retirement by an agreement made by him with such third party and the partners of the reconstituted firm, and such agreement may be imp ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... er section 19 of the Act there is a provision under the heading-Liability in case of discontinued firm or association. It reads as follows: "Where the business carried on by a firm or an association of persons, other than a company as defined in the Companies Act, 1956, is discontinued or the association of persons is dissolved, the tax shall be levied upon and recovered jointly and severally, from every person who at the time of such discontinuance or dissolution was a partner of such firm or member of such association; and all the provisions of this Act shall apply accordingly." 12.. From the above provision it is clear that the member even of a discontinued or dissolved firm is jointly or severally liable to pay the tax if he was a m ..... X X X X Extracts X X X X X X X X Extracts X X X X
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