The liability by holding out in case of retiring partner continues up to the ........

Indian Partnershoip Act (IPA) 1930 Admission and Retirement

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The liability by holding out, in case of retiring partner, continues up to the

date of retirement

date of public notice about such retirement

date of notice to other partners about such retirement

Whichever is earlier out of (A), (B) and (C).

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Explanation:

Refer to section 32 of the Partnership Act. A partner ceases to be a partner by retirement. Third parties can still presume mutual agency between the retired partner and continuing partners until a public notice of retirement is
given. In the absence of a public notice the retired partner and the continuing partners continue to be liable for the act of each other towards the third parties. Such public notice may be given either by the retired partner or by any partner of the reconstituted firm. By retirement a person ceases to be a partner.