Indian Partnership Act 1932

Indian Partnership Act

ACT NO. 9 OF 1932

[8th April, 1932.]

An Act to define and amend the law relating to partnership.

WHEREAS it is expedient to define and amend the law relating to partnership; it is hereby enacted as follows:–

CHAPTER I – Preliminary

Section 1 Indian Partnership Act – Short title, extent and commencement

Section 2 Indian Partnership Act – Definitions

Section 3 Indian Partnership Act – Application of provisions of Act 9 of 1872

CHAPTER II – The Nature Of Partnership

Section 4 Indian Partnership Act – Definition of “Partnership”, “Partner”, “Firm” arid “firm name”

Section 5 Indian Partnership Act – Partnership not created by status

Section 6 Indian Partnership Act – Mode of determining existence of partnership

Section 7 Indian Partnership Act – Partnership at will

Section 8 Indian Partnership Act – Particular partnership

CHAPTER III – Relations Of Partners To One Another

Section 9 Indian Partnership Act – General duties of partners .

Section 10 Indian Partnership Act – Duty to indemnify for loss caused by fraud

Section 11 Indian Partnership Act – Determination of rights and duties of partners by contract between the partners.

Section 12 Indian Partnership Act – The conduct of the business

Section 13 Indian Partnership Act – Mutual rights and liabilities

Section 14 Indian Partnership Act – The property of the firm

Section 15 Indian Partnership Act – Application of the property of the firm

Section 16 Indian Partnership Act – Personal profits named by partners

Section 17 Indian Partnership Act – Rights and duties of partners

CHAPTER IV – Relation Of Partners To Third Parties

Section 18 Indian Partnership Act – Partners to be agent of the firms

Section 19 Indian Partnership Act – Implied authority of partner as agent of the firm

Section 20 Indian Partnership Act – Extension and restriction of partner’s implied authority

Section 21 Indian Partnership Act – Partner’s authority in an emergency

Section 22 Indian Partnership Act – Mode of doing act to bind firm

Section 23 Indian Partnership Act – Effect of admissions by a partner

Section 24 Indian Partnership Act – Effect of notice to acting partner

Section 25 Indian Partnership Act – Liability of a partner for acts of the firm

Section 26 Indian Partnership Act – Liability of the firm for wrongful acts of a partner.

Section 27 Indian Partnership Act – Liability of firm for misapplication by partners

Section 28 Indian Partnership Act – Holding out

Section 29 Indian Partnership Act – Rights of transferee of a partner’s interest

Section 30 Indian Partnership Act – Minors admitted to the benefits of partnership.

CHAPTER V – Incoming And Outgoing Partners

Section 31 Indian Partnership Act – Introduction of a partner

Section 32 Indian Partnership Act – Retirement of a partner

Section 33 Indian Partnership Act – Expulsion of a partner

Section 34 Indian Partnership Act – Insolvency a partner

Section 35 Indian Partnership Act – Liability of estate of deceased partner

Section 36 Indian Partnership Act – Rights of outgoing partner to carry on competing busine

Section 37 Indian Partnership Act – Right of outgoing partner in certain cases to share subsequent profits

Section 38 Indian Partnership Act – Revocation of continuing guarantee by change in firm

CHAPTER VI – Dissolution of A Firm

Section 39 Indian Partnership Act – Dissolution of firm

Section 40 Indian Partnership Act – Dissolution by agreement

Section 41 Indian Partnership Act – Compulsory dissolution

Section 42 Indian Partnership Act – Dissolution on the happening of certain contingencies

Section 43 Indian Partnership Act – Dissolution by notice of partnership at wil

Section 44 Indian Partnership Act – Dissolution by the Court

Section 45 Indian Partnership Act – Liability for acts of partners done after dissolution

Section 46 Indian Partnership Act – Right of partners to have business wound up after 10 dissolution

Section 47 Indian Partnership Act – Continuing authority of partners for purposes of winding up

Section 48 Indian Partnership Act – Mode of settlement of accounts between partners

Section 49 Indian Partnership Act – Payment of firm debts and of separate debts.

Section 50 Indian Partnership Act – Personal profits earned after dissolution

Section 51 Indian Partnership Act – Return of premium on premature dissolution

Section 52 Indian Partnership Act – Rights where partnership contract is rescinded for fraud or misrepresentation

Section 53 Indian Partnership Act – Rights to restrain from use of firm name or firm property

Section 54 Indian Partnership Act – Agreements in restraint of trade

Section 55 Indian Partnership Act – Sale of good will after dissolution

CHAPTER VII – Registration Of Firms

Section 56 Indian Partnership Act – Power to exempt from application of this Chapter

Section 57 Indian Partnership Act – Appointment of Registrar

Section 58 Indian Partnership Act – Application of registration

Section 59 Indian Partnership Act – Registration

Section 60 Indian Partnership Act – Recording of alterations in firm name and principal place of business.

Section 61 Indian Partnership Act – Noting of closing and’opening of branches

Section 62 Indian Partnership Act – Noting of changes in names and addresses of partners

Section 63 Indian Partnership Act – Recording of changes in and dissolution of a firm

Section 64 Indian Partnership Act – Rectification of mistakes

Section 65 Indian Partnership Act – Amendment of Register by order of court

Section 66 Indian Partnership Act – Inspection of Register and filed documents

Section 67 Indian Partnership Act – Grant of copies

Section 68 Indian Partnership Act – Rules of evidence

Section 69 Indian Partnership Act – Effect of non- registration

Section 70 Indian Partnership Act – Penalty for furnishing of false particulars

Section 71 Indian Partnership Act – Power to make rules

CHAPTER VIII – Supplemental

Section 72 Indian Partnership Act – Mode of giving public notice

Section 73 Indian Partnership Act – [Repeals]

Section 74 Indian Partnership Act – Saving

See also: Indian Constitution 1949

– Indian Penal Code 1860 (S. 1-267)

– Indian Penal Code 1860 (S. 268-511)

– Indian Stamp Act 1899

Section 74 Indian Partnership Act 1932

Section 74 Indian Partnership Act

Section 74 of the Indian Partnership Act 1932 is about Savings. It is under CHAPTER VIII (Supplemental) of the Act.

Savings.

Nothing in this Act or any repeal effected thereby shall affect or be deemed to affect–

(a) any right, title, interest, obligation or liability already acquired, accrued or incurred before the commencement of this Act, or

(b) any legal proceeding or remedy in respect of any such right, title, interest, obligation or liability, or anything done or suffered before the commencement of this Act, or

(d) any enactment relating to partnership not expressly repealed by this Act, or

(e) any rule of insolvency relating to partnership, or

(f) any rule of law not inconsistent with this Act.

Section 72 Indian Partnership Act 1932

Section 72 Indian Partnership Act

Section 72 of the Indian Partnership Act 1932 is about Mode of giving public notice. It is under CHAPTER VIII (Supplemental) of the Act.

Mode of giving public notice.

A public notice under this Act is given–

(a) where it relates to the retirement or expulsion of a partner from a registered firm, or to the dissolution of a registered firm, or to the election to become or not to become a partner in a registered firm by a person attaining majority who was admitted as a minor to the benefits of partnership, by notice to the Registrar of Firms under section 63, and by publication in the Official Gazette and in at least one vernacular newspaper circulating in the district where the firm to which it relates has its place or principal place of business, and

(b) in any other case, by publication in the Official Gazette and in at least one vernacular newspaper circulating in the district where the firm to which it relates has its place or principal place of business.

Section 71 Indian Partnership Act 1932

Section 71 Indian Partnership Act

Section 71 of the Indian Partnership Act 1932 is about Power to make rules. It is under CHAPTER VII (Registration Of Firms) of the Act.

Power to make rules.

(1) The ¹[State Government] ²[may by notification in the Official Gazette make rules] prescribing the fees which shall accompany documents sent to the Registrar of Firms, or which shall be payable for the inspection of documents in the custody of the Registrar of Firms, or for copies from the Register of Firms:

Provided that such fees shall not exceed the maximum fees specified in Schedule I.

(2) The State Government may ³[also] make rules–

(a) prescribing the form of statement submitted under section 58, and of the verification thereof;

(b) requiring statements, intimations and notices under sections 60, 61, 62 and 63 to be in prescribed form, and prescribing the form thereof;

(c) prescribing the form of the Register of Firms, and the mode in which entries relating to firms are to be made therein, and the mode in which such entries are to be amended or notes made therein;

(d) regulating the procedure of the Registrar when disputes arise;

(e) regulating the filing of documents received by the Registrar;

(f) prescribing conditions for the inspection of original documents;

(g) regulating the grant of copies;

(h) regulating the elimination of registers and documents;

(i) providing for the maintenance and form of an index to the Register of Firms; and

(j) generally, to carry out the purposes of this Chapter.

(3) All rules made under this section shall be subject to the condition of previous publication.

[(4) Every rule made by the State Government under this section shall be laid, as soon as it is made, before the State Legislature.]

Section 70 Indian Partnership Act 1932

Section 70 Indian Partnership Act

Section 70 of the Indian Partnership Act 1932 is about Penalty for furnishing false particulars. It is under CHAPTER VII (Registration Of Firms) of the Act.

Penalty for furnishing false particulars.

Any person who signs any statement, amending statement, notice or intimation under this Chapter containing any particular which he knows to be false or does not believe to be true, or containing particulars which he knows to be incomplete or does not believe to be complete, shall be punishable with imprisonment which may extend to three months, or with fine, or with both.

Section 69 Indian Partnership Act 1932

Section 69 Indian Partnership Act

Section 69 of the Indian Partnership Act 1932 is about Effect of non-registration. It is under CHAPTER VII (Registration Of Firms) of the Act.

Effect of non-registration.

(1) No suit to enforce a right arising from a contract or conferred by this Act shall be institutes in any Court by or on behalf of any person suing as a partner in a firm against the firm or any person alleged to be or to have been a partner in the firm unless the firm is registered and the person suing is or has been shown in the Register of Firms as a partner in the firm.

(2) No suit to enforce a tight arising from a contract shall be instituted in any Court by or on behalf of a firm against any third party unless the firm is registered and the persons suing are or have been shown in the Register of Firms as partners in the firm.

(3) The provisions of sub-sections (1) and (2) shall apply also to a claim of set-off or other proceeding to enforce a right arising from a contract, but shall not affect–

(a) the enforcement of any right to sue for the dissolution of a firm or for accounts of a dissolved firm, or a ay right or power to realise the property of a dissolved firm, or

(b) the powers of an official assignee, receiver or Court under the Presidency-towns Insolvency Act, 1909 (2 of 1909), or the Provincial Insolvency Act, 1920 (5 of 1920), to realise the property of an insolvent partner.

(4) This section shall not apply–

(a) to firms or to partners in firms which have no place of business in ¹[the territories to which this Act extends], or whose places of business in ²[the said territories] are situated in areas to which, by notification under ³[section 56], this Chapter does not apply, or

(b) to any suit or claim of set-off not exceeding one hundred rupees in value which, in the Presidency-towns, is not of a kind specified in section 19 of the Presidency Small Cause Courts Act, 1882 (15 of 1882), or, outside the Presidency-towns, is not of a kind specified in the Second Schedule to the Provincial Small Cause Courts Act, 1887 (9 of 1887), or to any proceeding in execution or other proceeding incidental to or arising from any such suit or claim.

STATE AMENDMENT

Maharashtra

Substitution of section 69A of IX of 1932.–For section 69A of the principal Act, the following section shall be substituted, namely:–

“69A. Charges for delay in compliance of section 60, 61, 62 or 63.–If any statement, intimation or notice under section 60, 61, 62 or as the case may be, 63, in respect of any registered firm is not sent or given to the Registrar, within the period specified in that section, the Registrar may, make suitable amendments in the records relating to the firm, upon payment of charges for delay in sending or giving the same, at the rate of rupees two thousand per year or part thereof in respect of the period between the date of expiry of the period specified in that section and the date of making the payment.”.

[Vide Maharashtra Act 16 of 2018, s. 3]

Section 68 Indian Partnership Act 1932

Section 68 Indian Partnership Act

Section 68 of the Indian Partnership Act 1932 is about Rules of evidence. It is under CHAPTER VII (Registration Of Firms) of the Act.

(1) Any statement, intimation or notice recorded or noted in the Register of Firms shall, as against any person by whom or on whose behalf such statement, intimation or notice was signed, be conclusive proof of any fact therein stated.

(2) A certified copy of an entry relating to a firm in the Register of Firms may be produced in proof of the fact of the registration of such firm, and of the contents of any statement, intimation or notice recorded or noted therein.

STATE AMENDMENT

Uttarakhand.–

Amendment of section 68.–In Principal Act, sub-section (1) of section 68 shall be substituted as follows, namely:–

68. Rules of Evidence:–(1) Any statement, intimation or notice recorded or noted in the register of Firms shall, as against any person by whom or on whose behalf such statement, intimation or notice was digitally signed, be conclusive proof of any fact therein stated.

[Vide Uttarakhand Act 5 of 2019, s. 4]

Section 67 Indian Partnership Act 1932

Section 67 Indian Partnership Act

Section 67 of the Indian Partnership Act 1932 is about Grant of copies. It is under CHAPTER VII (Registration Of Firms) of the Act.

Grant of copies.

The Registrar shall on application furnish to any person, on payment of such fee as may be prescribed, a copy, certified under his hand, of any entry or portion thereof in the Register of Firms.

STATE AMENDMENT

Uttarakhand.–

Substituted of section 67.–In Principal Act, section 67 shall be substituted as follow, namely:–

67. Grant of copies.–The Registrar shall on online application furnish to any person, on payment of such fee as may be prescribed , a copy digitally certified under his hand of any entry or portion thereof in the register of firms.

[Vide Uttarakhand Act 5 of 2019, s. 3]

Section 66 Indian Partnership Act 1932

Section 66 Indian Partnership Act

Section 66 of the Indian Partnership Act 1932 is about Inspection of Register and filed documents. It is under CHAPTER VII (Registration Of Firms) of the Act.

Inspection of Register and filed documents.

(1) The Register of Firms shall be open to inspection by any person on payment of such fee as may be prescribed.

(2) All statements, notices and intimations filed under this Chapter shall be open to inspection, subject to such conditions and on payment of such fee as may be prescribed.

Section 65 Indian Partnership Act 1932

Section 65 Indian Partnership Act

Section 65 of the Indian Partnership Act 1932 is about Amendment of Register by order of Court. It is under CHAPTER VII (Registration Of Firms) of the Act.

Amendment of Register by order of Court.

A Court deciding any matter relating to a registered firm may direct that the Registrar shall make any amendment in the entry in the Register of Firms relating to such firm which is consequential upon its decision; and the Registrar shall amend the entry accordingly.