No Automatic Dissolution on Partner’s Death: SC Condemns Indian Oil Corporation Limited for...

The Supreme Court has condemned Indian Oil Corporation Limited (IOCL) for "arbitrary denial of kerosene supply to a firm," ruling that there is "no automatic dissolution on a partner's death." The apex court observed that the death of a partner does not automatically lead to the dissolution of a partnership firm, especially if the partnership deed provides otherwise. IOCL's arbitrary cessation of supply, based on a mistaken assumption of firm dissolution, was deemed unfair and unlawful. This ruling protects the continuity of business operations for partnership firms and prevents arbitrary actions by state entities.