In case of retirement, the retiring partner or in case of death, the executor of the
deceased partner, if the dues are not settled, then such retired partner or the
executor is entitled to the following:
Maximum of : Interest @ 6% p.a. on the amount due to them (i.e. if the amount is
unsettled, like, rate of interest on loan to be allowed to the retired partner or the
executor is not mentioned)
Or
The share of the profit earned for the amount due to the partner
Conditions:
(a) The surviving partners/continuing partners continue to carry on the business of the
firm.
(b) The business is carried on without any final settlement of accounts between the
continuing partners and the outgoing partners or his estate.
(c) There is no contract to the contrary of the options contained in Section 37 i.e.
share in the profits or interest @ 6% p.a. on the unsettled capital.

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