Indian Partnership Act

CHAPTER I – PRELIMINARY 1. Short title, extent and commencement. (1) This Act may be called the Indian Partnership Act, 1932. (2) It extends to the whole of India except the State of Jammu and Kashmir. (3) It shall come into force on the 1st day of October, 1932, exceptRead…

2. Definitions. In this Act, unless there is anything repugnant in the subject or context,- (a) an “act of a firm” means any act or omission by all the partners, or by any partner or agent of the firm which gives rise to a right enforceable by or against theRead…

3. Application of provisions of Act 9 of 1872. The unrepealed provisions of the Indian Contract Act, 1872, save in so far as they are inconsistent with the express provisions of this Act, shall continue to apply to firms. Partnership Act full Bare Act Download Partnership Act PDFRead…

CHAPTER II – THE NATURE OF PARTNERSHIP 4. Definition of “partnership”, “partner”, “firm” and “firm name”. ’’Partnership” is the relation between persons who have agreed to share the profits of a business carried on by all or any of them acting for all. Persons who have entered into partnership withRead…

5. Partnership not created by status. The relation of partnership arises from contract and not from status; and, in particular, the members of a Hindu undivided family carrying on a family business as such, or a Burmese Buddhist husband and wife carrying business as such, are not partners in suchRead…

6. Mode of determining existence of partnership. In determining whether a group of persons is or is not a firm, or whether a person is or is not a partner in a firm, regard shall be had to the real relation between the parties, as shown by all relevant factsRead…

7. Partnership at will. Where no provision is made by contract between the partners for the duration of their partnership, or for the determination of their partnership, the partnership is ‘partnership at will’. Partnership Act full Bare Act Download Partnership Act PDFRead…

8. Particular partnership. A person may become a partner with another person in particular adventures or undertakings. Partnership Act full Bare Act Download Partnership Act PDFRead…

CHAPTER III – RELATIONS OF PARTNERS TO ONE ANOTHER 9. General duties of partners. Partners are bound to carry on the business of the firm to the greatest common advantage, to be just and faithful to each other, and to render true accounts and full information of all things affectingRead…

10. Duty to indemnify for loss caused by fraud. Every partner shall indemnify the firm for any loss caused to it by his fraud in the conduct of the business of the firm. Partnership Act full Bare Act Download Partnership Act PDFRead…

11. Determination of rights and duties of partners by contract between the partners. (1) Subject to the provisions of this Act, the mutual rights and duties of the partners of a firm may be determined by contract between the partners, and such contract may be expressed or may be impliedRead…

12. The conduct of the business. Subject to contract between the partners,- (a) every partner has a right to take part in the conduct of the business; (b) every partner is bound to attend diligently to his duties in the conduct of the business; (c) any difference arising as toRead…

13. Mutual rights and liabilities. Subject to contract between the partners,- (a) a partner is not entitled to receive remuneration for taking part in the conduct of the business; (b) the partners are entitled to share equally in the profits earned, and shall contribute equally to the losses sustained byRead…

14. The property of the firm. Subject to contract between the partners, the property of the firm includes all property and rights and interests in property originally brought into the stock of the firm, or acquired, by purchase or otherwise, by or for the firm, or for the purposes andRead…

15. Application of the property of the firm. Subject to contract between the partners, the property of the firm shall be held and used by the partners exclusively for the purposes of the business. Partnership Act full Bare Act Download Partnership Act PDFRead…

16. Personal profits earned by partners. Subject to contract between the partners,- (a) if a partner derives any profit for himself from any transaction of the firm, or from the use of the property or business connection of the firm or the firm name, he shall account for that profitRead…

17. Rights and duties of partners. Subject to contract between the partners- (a) after a change in the firm- where a change occurs in the constitution of a firm, the mutual rights and duties of the partners in the reconstituted firm remain the same as they were immediately before theRead…

CHAPTER IV – RELATIONS OF PARTNERS TO THIRD PARTIES 18. Partner to be agent of the firm. Subject to the provisions of this Act, a partner is the agent of the firm for the purpose of the business of the firm. Partnership Act full Bare Act Download Partnership Act PDFRead…

19. Implied authority of partner as agent of the firm. (1) Subject to the provisions of section 22, the act of a partner which is done to carry on, in the usual way, business of the kind carried on by the firm, binds the firm. The authority of a partnerRead…

20. Extension and restriction of partner’s implied authority. The partners in a firm may, by contract between the partners, extend or restrict the implied authority of any partner. Notwithstanding any such restriction, any act done by a partner on behalf of the firm which falls within his implied authority bindsRead…

21. Partner’s authority in an emergency. A partner has authority, in an emergency, to do all such acts for the purpose of protecting the firm from loss as would be done by a person of ordinary prudence, in his own case, acting under similar circumstances, and such acts bind theRead…

22. Mode of doing act to bind firm. In order to bind a firm, an act or instrument done or executed by a partner or other person on behalf of the firm shall be done or executed in the firm name, or in any other manner expressing or implying anRead…

23. Effect of admissions by a partner. An admission on representation made by a partner concerning the affairs of the firm is evidence against the firm, if it is made in the ordinary course of business. Partnership Act full Bare Act Download Partnership Act PDFRead…

24. Effect of notice to acting partner. Notice to a partner, who habitually acts in the business of the firm of any matter relating to the affairs of the firm operates as notice to the firm, except in the case of a fraud on the firm committed by or withRead…

25. Liability of a partner for acts of the firm. Every partner is liable, jointly with all the other partners and also severally, for all acts of the firm done while he is a partner. Partnership Act full Bare Act Download Partnership Act PDFRead…

26. Liability of the firm for wrongful acts of a partner. Where, by the wrongful act or omission of a partner acting in the ordinary course of the business of a firm, or with the authority of his partners, loss or injury is caused to any third party, or anyRead…

27. Liability of firm for misapplication by partners. Where- (a) a partner acting within his apparent authority receives money or property from a third party and misapplies it, or (b) a firm in the course of its business receives money or property from a third party, and the money orRead…

28. Holding out. (1) Any one who by words spoken or written or by conduct represents himself or knowingly permits himself to be represented, to be a partner in a firm, is liable as a partner in that firm to any one who has on the faith of any suchRead…

29. Rights of transferee or a partner’s interest. (1) A transfer by a partner of his interest in the firm, either absolute or by mortgage, or by the creation by him of a change on such interest, does not entitle the transferee, during the continuance of the firm, to interfereRead…

30. Minors admitted to the benefits of partnership. (1) A person who is a minor according to the law to which he is subject may not be a partner in a firm, but, with the consent of all the partners for the time being, he may be admitted to theRead…

CHAPTER V – INCOMING AND OUTGOING PARTNERS 31. Introduction of a partner. (1) Subject to contract between the partners and to the provisions of section 30, no person shall be introduced as a partner into a firm without the consent of all the existing partners. (2) Subject to the provisionsRead…

32. Retirement of a partner. (1) A partner may retire,- (a) with the consent of all the other partners, (b) in accordance with an express agreement by the partners, or (c) where the partnership is at will, by giving notice in writing to all the other partners of his intentionRead…

33. Expulsion of a partner. (1) A partner may not be expelled from a firm by any majority of the partners, save in the exercise in good faith of powers conferred by contract between the partners. (2) The provisions of sub-sections (2), (3) and (4) of section 32 shall applyRead…

34. Insolvency of a partner. (1) Where a partner in a firm is adjudicated an insolvent he ceases to be a partner on the date on which the order of adjudication is made, whether or not the firm is hereby dissolved. (2) Where under a contract between the partners theRead…

35. Liability of estate of deceased partner. Where under a contract between the partners the firm is not dissolved by the death of a partner, the estate of a deceased partner is not liable for any act of the firm done after his death. Partnership Act full Bare Act DownloadRead…

36. Right of outgoing partner to carry on competing business. (1) An outgoing partner may carry on a business competing with that of the firm and he may advertise such business, but, subject to contract to the contrary, he may not,- (a) use the firm name, (b) represent himself asRead…

37. Right of outgoing partner in certain cases to share subsequent profits. Where any member of a firm has died or otherwise ceased to be a partner, and the surviving or continuing partners carry on the business of the firm with the property of the firm without any final settlementRead…

38. Revocation of continuing guarantee by change in firm. A continuing guarantee given to a firm, or to a third party in respect of the transactions of a firm, is, in the absence of agreement to the contrary, revoked as to future transactions from the date of any change inRead…

CHAPTER VI – DISSOLUTION OF A FIRM 39. Dissolution of a firm. The dissolution of partnership between all the partners of a firm is called the ‘dissolution of the firm’. Partnership Act full Bare Act Download Partnership Act PDFRead…

40. Dissolution by agreement. A firm may be dissolved with the consent of all the partners or in accordance with a contract between the partners. Partnership Act full Bare Act Download Partnership Act PDFRead…

41. Compulsory dissolution. A firm is dissolved,- (a) omitted by Act 31 of 2016 (b) by the happening of any event which makes it unlawful for the business of the firm to be carried on or for the partners to carry it on in partnership: Provided that, where more thanRead…

42. Dissolution on the happening of certain contingencies. Subject to contract between the partners a firm is dissolved,- (a) if constituted for a fixed term, by the expiry of that term; (b) if constituted to carry out one or more adventures or undertakings, by the completion thereof; (c) by theRead…

43. Dissolution by notice of partnership at will. (1) Where the partnership is at will, the firm may be dissolved by any partner giving notice in writing to all the other partners of his intention to dissolve the firm. (2) The firm is dissolved as from the date mentioned inRead…

44. Dissolution by the Court. At the suit of a partner, the Court may dissolve a firm on any of the following grounds, namely- (a) that a partner has become of unsound mind, in which case the suit may be brought as well by the next friend of the partnerRead…

45. Liability for acts of partners done after dissolution. (1) Notwithstanding the dissolution of a firm, the partners continue to be liable as such to third parties for any act done by any of them which would have been an act of the firm if done before the dissolution, untilRead…

46. Right of partners to have business wound up after dissolution. On the dissolution of a firm every partner or his representative is entitled, as against all the other partners or their representatives, to have the property of the firm applied in payment of the debts and liabilities of the firm,Read…

47. Continuing authority of partners for purposes of winding up. After the dissolution of a firm the authority of each partner to bind the firm, and the other mutual rights and obligations of the partners continue notwithstanding the dissolution, so far as may be necessary to wind up the affairRead…

48. Mode of settlement of accounts between partners. In settling the accounts of a firm after dissolution, the following rules shall, subject to agreement by the partners, be observed- (a) losses, including deficiencies of capital, shall be paid first out of profits, next out of capital, and, lastly, if necessary,Read…

49. Payment of firm debts and of separate debts. Where there are joint debts due from the firm, and also separate debts due from any partner, the property of the firm shall be applied in the first instance in payment of the debts of the firm, and, if there isRead…

50. Personal profits earned after dissolution. Subject to contract between the partners, the provisions of clause (a) of section 16 shall apply to transactions by any surviving partner or by the representatives of a deceased partner, undertaken after the firm is dissolved on account of the death of a partner andRead…

51. Return of premium on premature dissolution. Where a partner has paid a premium on entering into partnership of 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 premiumRead…

52. Rights where partnership contract is rescinded for fraud or misrepresentation. Where a contract creating partnership is rescinded on the ground of the fraud or misrepresentation of any of the parties thereto the party entitled to rescind is, without prejudice to any other right, entitled,- (a) to a lien on,Read…

53. Right to restrain from use of firm name or firm property. After a firm is dissolved, every partner or his representative may, in the absence of a contract between the partners to the contrary, restrain any other partner or his representative from carrying on a similar business in theRead…

54. Agreements of restraint of trade. Partners may, upon or in anticipation of the dissolution of the firm, make an agreement that some or all of them will not carry on a business similar to that of the firm within a specified period or within specified local limits; and notwithstandingRead…

55. Sale of goodwill after dissolution. (1) In settling the accounts of a firm after dissolution, the goodwill shall, subject to contract between the partners, be included in the assets, and it may be sold either separately or along with other property of the firm. Rights of buyer and sellerRead…

CHAPTER VII – REGISTRATION OF FIRMS 56. Power to exempt from application of this Chapter. The State Government of any State may, by notification in the Official Gazette, direct that the provisions of this Chapter shall not apply to that State or to any part thereof specified in the notification.Read…

57. Appointment of Registrars. (1) The State Government may appoint Registrars of Firms for the purposes of this Act, and may define the areas within which they shall exercise their powers and perform their duties. (2) Every Registrar shall be deemed to be a public servant within the meaning ofRead…

58. Application for registration. (1) The registration of a firm may be effected at any time by sending by post or delivering to the Registrar of the area in which any place of business of the firm is situated or proposed to be situated, a statement in the prescribed formRead…

59. Registration. When the Registrar is satisfied that the provisions of section 58 have been duly complied with, he shall record an entry of the statement in a register called the Register of Firms, and shall file the statement. STATE AMENDMENTS Maharashtra Renumber section 59 as sub-section (1) of thatRead…

STATE AMENDMENT Section 59A Andhra Pradesh After section 59, insert the following section, namely- 59A. Amendment of the Register of Firms- (1) Notwithstanding anything in this Chapter, the Registrar of Firms, Andhra Pradesh, may, by order in writing, amend the register by deleting therefrom the entries relating to any firm, whoseRead…

STATE AMENDMENT Section 59B Gujarat After section 59A, insert the following section, namely- 59B. Deletion of entries relating to certain firms by reason of reorganisation of Bombay State- (1) Notwithstanding anything contained in this Chapter, a Registrar of Firms appointed for any area by the Government of Gujarat may, byRead…

60. Recording of alterations in firm name and principal place of business. (1) When an alteration is made in the firm name or in the location of the principal place of business of a registered firm, a statement may be sent to the Registrar accompanied by the prescribed fee, specifyingRead…

61. Noting of closing and opening of branches. When a registered firm discontinued business at any place or begins to carry on business at any place, such place not being its principal place of business, any partner or agent of the firm may send intimation thereof to the Registrar, whoRead…

62. Noting of changes in names and addresses of partners. When any partner in a registered firm alters his name or permanent address, an intimation of the alteration may be sent by any partner or agent of the firm to the Registrar, who shall deal with it in the mannerRead…

63. Recording of changes in and dissolution of a firm. (1) When a change occurs in the constitution of a registered firm any incoming, continuing or outgoing partner, and when a registered firm is dissolved any person who was a partner immediately before the dissolution, or the agent of anyRead…

64. Rectification of mistakes. (1) The Registrar shall have power at all times to rectify any mistake in order to bring the entry in the Register of Firms relating to any firm into conformity with the documents relating to that firm filed under this Chapter. (2) On application made byRead…

65. 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 amendRead…

66. 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 onRead…

67. 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. Partnership Act full Bare Act Download Partnership Act PDFRead…

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 signed, be conclusive proof of any fact therein stated. (2) A certified copy of anRead…

69. Effect of non-registration. (1) No suit to enforce a right arising from a contract or conferred by this Act shall be instituted 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 orRead…

70. 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 toRead…

71. Power to make rules. (1) The State Government may by notification in the Official Gazette make rules] describing 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, orRead…

CHAPTER VIII – SUPPLEMENTAL 72. 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 notRead…

73. Repeals. [Rep. by the Repealing Act, 1938 (1 of 1938), sec. 2 and Sch.] Schedule I of Partnership Act. Schedule II of Partnership Act. Partnership Act full Bare Act Download Partnership Act PDFRead…

74. 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,Read…

Section59A-1 Partnership Act. LATE REGISTRATION ON PAYMENT OF PENALTY. If the statement in respect of any firm is not sent or delivered to the Registrar within the time specified in sub-section (1A) of section 58, then the firm may be registered on payment, to the Registrar, of a penalty ofRead…

Section 59A Partnership Act. DELETION AND ADDITION OF CERTAIN ENTRIES RELATING TO CERTAIN FIRMS, BY REASON OF REORGANISATION OF STATES. (1) Notwithstanding anything contained in this Chapter, a Registrar of Firms appointed for any area by the Government of Bombay may, by order in writing, amend the Register of FirmsRead…

Section 59B Partnership Act. DELETION OF ENTRIES RELATING TO CERTAIN FIRMS BY REASON OF FORMATION OF GUJARAT STATE. (1) Notwithstanding anything contained in this Chapter, a Registrar of Firms appointed for any area by the Government of Maharashtra may, by order in writing, amend the Register of Firms maintained byRead…

Section69A. PENALTY FOR CONTRAVENTION OF SECTION 60, 61, 62, OR 63. If any statement, intimation or notice under sections 60, 61, 62 or 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, after givingRead…

Section70A. MAXIMUM FEES AND POWER TO AMEND SCHEDULE I. (1) The fees payable under this Act and the rules made thereunder shall not exceed the maximum fees as specified in Schedule I. (2) Subject to the provisions of this section, the State Government may, having regard to the expenditure incurredRead…

THE SCHEDULES PARTNERSHIP ACT Schedule I. MAXIMUM FEES. SCHEDULE-I MAXIMUM FEES (See sections 70A and 71) Document or act in respect of which the fee is payable, Maximum fee. (1) Statement under section 58(1) Fifty rupees. (2) Memorandum of appeal under section (4) Twenty-five rupees. (3) Statement under section 60Read…

Schedule II Partnership Act ENACTMENTS REPEALED – BY REPEALING ACT, 1938 (1 OF 1938) SECTION 2 AND SCHEDULE Partnership Act full Bare Act Download Partnership Act PDFRead…