Amendment status not verified — confirm the current text below against the official source.
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 the firm to any one who has on the faith of any such representation given credit to the firm, whether the person representing himself or represented to be a partner does or does not know that the representation has reached the person so giving credit. (2) Where after a partner's death the business continued in the old firm name, the continued use of that name or of the deceased partner's name as a part thereof shall not of itself make his legal representative or his estate liable for any act of the firm done after his death. Rights of transferee of 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 charge on such interest, does not entitle the transferee, during the continuance of the firm, to interfere in the conduct of the business or to require accounts, or to inspect the books of the firm, but entitles the transferee only to receive the share of profits of the transferring partner' and the transferee shall accept the account of profits agreed to by the partners. (2) If the firm is dissolved or if the transferring partner ceases to be a partner, the transferee is entitled as against the remaining partners to receive the share of the assets of the firm to which the transferring partner is entitled and for the purpose of ascertaining that share, to an account as from the date of the dissolution. 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 the benefits of partnership. Such minor has a right to such share of the property and of the profits of the firm as may be agreed upon, and he may have access to and inspect and copy any of the accounts of the firm. Such minors share is liable for the acts of the firm, but the minor is not personally liable for any such act. Such minor may not sue the partners for an account or payment of his share of the property or profits of the firm, -save when severing his connection with the firm, and in such case the amount of his share shall be determined by a valuation made as far as possible in accordance with the rules contained in Sec. 48. Provided that all the partners acting together or any partner entitled to dissolve the firm upon notice to other partners may elect in such suit to dissolve the firm , and thereupon the Court shall proceed with the suit as one for dissolution and for settling accounts between the partners, and the amount of the share of the minor shall be determined along with the shares of the partners. (5) At any time within six months of his attaining majority, or of his obtaining knowledge that he had been admitted to the benefits of partnership, whichever date is later, such person may give public notice that he has elected to become or that he has elected not to become a partner in the firm, and such notice shall determine his position as regards the firm. Provided that - if he fails to give such notice, he shall become a partner in the firm on the expiry of the said six month. (6) Where any person has been admitted as a minor to the benefits of partnership in a firm, the burden of proving the fact that such person had no knowledge of such admission until a particular date after the expiry of six months of his attaining majority shall lie on the persons asserting that fact. 7) Where such person becomes a partner - his rights and liabilities as a minor continue up to the date on which he becomes a partner, but he also becomes personally, liable to third parties for all acts of the firm done since he was admitted to the benefits of partnership and . his share in the property and profits of the firm shall be the share to which he was entitled as a minor Where such person elects not to become a partner. his rights and liabilities shall continue to be those of a minor under this section upto the date on which he gives public notice. his share shall not be liable for any acts of the firm done after the date of the notice, and he shall be entitled to sue the partners for his share of the property and profits in accordance with sub section (4) 9) Nothing in sub sections (7) and (8) shall effect then provisions of Sec. 28. Short Note -Sec 30- Suit filed by partnership firm & Partners - Death of one partner does not abate the entire suit - Firm Chunnilal Devkissasn dass vs. Nathu Ram 1990 (2) RLR, 237. CHAPTER V- INCOMING AND OUTGOING PARTNERS