No Dissolution of Firm upon Death of Partner if Deed posits Continuity: Supreme Court

The Supreme Court has ruled that "no dissolution of a firm upon the death of a partner if the deed posits continuity," especially when there are more than two partners. The court clarified that while Section 42 of the Indian Partnership Act, 1932, generally stipulates dissolution upon a partner's death, this rule does not apply if the partnership deed explicitly provides for the firm's continuity despite a partner's demise, and there are more than two partners. This decision provides significant legal clarity, emphasizing the primacy of contractual agreements in partnership continuation, even in the event of a partner's death.