Distinguish between Retirement of partner and Expulsion of partner.

Sections 32 and 33 of the Indian Partnership Act, 1932 deals with Retirement and Expulsion of Partner Retirement of Partner When one or more partners leaves the firm and the remaining partners continue to do the business of the firm, it is known as retirement of a partner. A Partner may retire- with the consent of all the other partners, in accordance with an express agreement by the partners, or where the partnership is at will, by giving notice in writing to all the other partners of his intention to retire. Due to retirement, the existing partnership comes to an end and the remaining partners form a new agreement and the partnership firm is reconstituted with new terms and conditions. At the time of retirement, the retiring partner's claim is settled. Expulsion of Partner A partner can be expelled from a firm by a majority of the partners where such a power is conferred by the agreement between the partners and the power is exercised in good faith.