under Section 42 of the Partnership Act it is provided that "subject to contract between the partners, a firm is dissolved-(c) by death of a partner."
2) It is evident that this particular provision is .subject to the contract between the partners. Where the contract between the partners contemplates expressly or impliedly that the death of a partner would not result in dissolution of the partnership firm, the said term in the contract is to be given effect to superseding the provision contained in Section 42(c).
3) the value of the assets should be ascertained in order to reimburse the heirs of the deceased partner in the shape of money
4)to determine as to what share in money they are entitled the provisions of Section 48 of the Partnership A, have to be followed which prescribe at first for calculating the losses, deficiencies of capital and other liabilities and that is why it is almost a settled law that for making distribution of the assets between the partners of the dissolved firm or otherwise, the provisions of Section 48 must be followed.
5) Section 46 of the Partnership Act. lays down that on tile dissolution of a firm every partner or his representative is entitled as against alia other partners or their representatives to have the property of the firm applied in payment of the debts and liabilities of the firm and to have the surplus distributed among the partners or their representatives according to their rights. This provision has to be strictly followed when the firm is dissolved but the principle lying under this provision has also to be followed where the firm is not to be dissolved and share of the outgoing partner is to be determ,ined
6) in view of arbitration clause in partnership deed disputes between the legal heirs of deceased father have to be referred to arbitration
7)on dissolution of firm on father demise you are entitled to your share of surplus generated
8) as far as your son in law is concerned he should deny that any loan was taken at 12 per cent interest
9) there is no loan agreement signed by son in law nor any agreement to pay interest .