Section 51 Indian Partnership Act

Section 51 of the Indian Partnership Act 1932 is about Return of premium on premature dissolution. It is under CHAPTER VI (Dissolution of A Firm) of the Act.

Return of premium on premature dissolution

Where a partner has paid a premium on entering into partnership for a fixed term, and the firm is dissolved before the expiration of that term otherwise than by the death of a partner, he shall be entitled to repayment of the premium or of such part thereof as may be reasonable, regard being had to the terms upon which he became a partner and to the length of time during which he was a partner, unless–

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(a) the dissolution is mainly due to his own misconduct, or

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(b) the dissolution is in pursuance of an agreement containing no provision for the return of the premium or any part of it.

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