The question was-
After death of a partner can his wife or his legal heir be a partner of that partnership firm?
Section 42(C) of Partnership Act talks about ‘Dissolution of firm on the death of a partner.’
If there is no contract to the contrary then partnership automatically dissolves on the death of a partner.
Because as per section 4, partnership is result of an agreement and thus can not be succeeded mere by status of being heir.
And as per section 35:
When a partner dies he ceases to be a partner and all his liability also ceases. This section is meant for protection of estate of deceased.
Under section 37:
Legal representatives can claim profits of deceased partner only when the business of partnership firm is continuing.
Note: The claim can be for an account of deceased or for a specific amount which represents deceased partner’s share.
So this is how it generally goes until there is any contract to contrary. If any contract between partners specifies the events to take place after dissolution then it shall act accordingly.
Other Partnership Notes: