Dissolution of a Partnership under The Indian Partnership Act, 1932, “Partnership Act” can have far-reaching consequences, affecting not only the erstwhile partners but also related third parties. The process of dissolution involves activities such as settling of accounts, concluding of on-going business matters, discharging the Partnership firm’s liabilities and finally, distributing any remaining assets among the partners basis their respective shares. The Limitation Act, 1963 provides a period of three years from the date of dissolution within which  the parties can agitate their claims arising from the dissolution and winding up of the firm[1]. The period of limitation rests on the notion that the date of dissolution marks the conclusion of the firm’s winding-up process and settling of the rights and liabilities of the affected parties. However, is dissolution synonymous with winding up of the firm? Can erstwhile partners not have a right to agitate their claims post the period of three years if the process of winding-up could not be completed within the timeframe? Pertinently, through this blog, we aim to analyse whether any claims surviving the period of three years, which have been left unadjudicated are deadwood or can be brought under the period of limitation and give rise to a continuing cause of action.Continue Reading Stopping the clock on claims arising from dissolution of partnership firms