In a Current Account of a partnership firm consisting of two partners, one partner died. The son of the deceased partner claims the balance in the account as legal heir. How the Bank will deal in such a situation?

After obtaining the documentary evidence that one partner has died, bank will mark caution in the account and all cheque issues by the firm will be returned. As the surviving partner is only one, firm stands compulsorily dissolved. The legal representatives of the deceased partner will be advised to contact the surviving partners and approach the Banks for settlement of claim. The claim will be settled after taking the joint discharge from all the legal heirs along with the surviving partner after obtaining an indemnity. Partnership is created orally or in writing, death instantly or insolvency of a partner dissolves the firm unless there is a provision to the contrary in the partnership deed. In the present case, as remaining partner is only one, firm cannot continue because for partnership minimum two partners are required. Banks will get the valid discharge after making the payment and thereafter Legal Heirs claimants can settle their intra claims as per succession rights.