The Queensland Court of Appeal held that where one partner purchases the interest of another, this does not constitute a 'winding up' of the partnership to which s 39 of the Partnership Act 1892 (NSW) applies. A partner's 'share' or 'interest' in a partnership is a net concept — it represents the partner's proportion of the surplus after all partnership debts and liabilities have been accounted for, applying Bakewell v Deputy FCT (1937) 58 CLR 743 and Hendry v Perpetual Executors (1961) 106 CLR 256. The appeal was allowed and paragraphs 3, 4 and 5 of the trial judgment were set aside.
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