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Navigating A Partnership At Will And The Outgoing Partner’s Exit: Supreme Court Holds That The Share Must Be Valued When The Assets Are Actually Realized, Not On The Date Of Dissolution
The Supreme Court, in V. Sumitra Reddy & Anr. vs. K. Ranganadha Reddy & Ors. (2026 INSC 979) (‘Sumitra Reddy vs. Ranganadha Reddy‘), has held that once a partnership at will stands dissolved, the residue in the assets of the firm has to be valued as on the date those assets are actually realised, and not as on the date of dissolution, particularly where the continuing partners have gone on using the dissolved firm’s property for a reconstituted business instead of settling accounts with the outgoing partner.
King, Stubb & Kasiva