Joint and several liabilty

In case of joint liability, the partners are treated as one single unit i.e., the firm and a creditor can file a suit against the firm if his money is not paid to him on due date. In case of sevaral liability, each partner is liable to a specific amount to the creditor. So in case of default by any partner, the creditor can sue only that partner. In case of joint and several liability, each partner is both jointly and severally liable. So, if any partner becomes insolvent, the creditor has the right to recover his money from other partners. In this case, he can sue both the firm and that partner in default . Am I correct ? Can the creditor in case of insolvency of any partner make liable the other partners? ( Joint and several liability) Pls explain.

Sibi Srinivasan

CA Final

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13-Sep-21 07:25

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