Without the consent of all the partners, a partner cannot transfer his share in the partnership so as to place another person in his shoes with all the rights of a partner. Contrast this with Section 75 of the Companies Act where company shares are freely transferable in public liability companies.
If an article provides that one or more of the partners shall have the option of introducing a new partner either as his successor or otherwise, the other partners will be bound to accept his nominee because the consent required by law may always be given in advance. However the law allows a partner to assign either absolutely or by way of mortgage his share in the assets and profits. In that situation the assignee is not entitled to interfere in the management of the business or to require any accounts from the business or to inspect the partnership books or to exercise any of the rights and functions of a partner. The only right such a 3rd party is entitled to is to receive the share of the profits to which the assigning partner would otherwise be entitled. However on the application by a Judgment Creditor of one of the partners the courts may under Section 27 make an order charging that partner’s interest in the assets and profits with payment of the judgment debt and for that purpose the court may appoint a Receiver of that partner’s share of the profits.
Under Section 37 this is one of the grounds for which the partnership may be dissolved by an order of the court.