Indian Partnership Act

THE INDIAN PARTNERSHIP ACT, 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 OF INDIAN PARTNERSHIP ACT, 1932 PRELIMINARY 1. Short title, extent and commencement. (1)Keep Reading

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, exceptKeep Reading

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 theKeep Reading

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 PDFKeep Reading

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 withKeep Reading

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 suchKeep Reading

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 factsKeep Reading

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 PDFKeep Reading

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 PDFKeep Reading

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 affectingKeep Reading

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 PDFKeep Reading

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 impliedKeep Reading

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 toKeep Reading

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 byKeep Reading