The Supreme Court in the matter of Annapurna B. Uppin & Ors. v. Malsiddappa & Anr., while demarcating the contours and extent of liability that flows from holding the position as a Partner in a Partnership Firm, reiterated the legal position that the legal heirs of a deceased partner do not become liable for any liability of the firm upon the death of the partner.

The core point of contention upon which the case was premised was in relation to the claims of the complainant as against the legal heirs of a deceased partner, to recover the investment made by the complainant in the partnership firm.

The judgment authored by Justice Vikram Nath noted that no fresh partnership deed was executed reconstituting the firm in which the present appellants had become partners so as to take upon themselves the assets and liabilities of the firm. Hence, the complaint seeking recovery of the investment from the deceased partner’s legal heirs would not be maintainable.