The INDIAN PARTNERSHIP ACT, 1932
delhi · 1932
The scanned source for this Act is imperfect — headings or section boundaries may be off. Verify against the official source.
- S. 1For Statement of Objects and Reasons and for Report of Special Committee, see Gazette of India, 1931, Pt
- S. 2Section 2 provides definitions for terms used in the Indian Partnership Act, 1932.
- S. 3The section allows the Indian Contract Act, 1872, to apply to firms unless this Act specifies otherwise.
- S. 4Ins
- S. 5Section 5 states that partnership is formed by contract, not by family status or relationship.
- S. 6Section determines partnership existence by examining real relations between parties, not just profit sharing.
- S. 7Section 7 states that a partnership without a fixed term or termination clause is a partnership at will.
- S. 8Particular partnership - A person may become a partner with another person in particular adventures or undertakings
- S. 9Section outlines partners' duties to conduct business fairly, honestly, and transparently for mutual benefit.
- S. 10Section 10 mandates that a partner must compensate the firm for any losses due to their own fraudulent actions in business.
- S. 11Section 11 allows partners to contractually determine their rights and duties, including restrictions on outside business.
- S. 12Section 12 outlines partners' rights and duties in conducting business, including participation, diligence, and access to firm records.
- S. 13Section 13 outlines mutual rights and liabilities of partners, including equal profit and loss sharing, interest on capital, and indemnification for emergency actions.
- S. 14Section 14 outlines the firm's property, including original contributions, acquisitions, and goodwill, unless otherwise specified.
- S. 15Section 15 states that the firm's property must be used exclusively for business purposes, subject to partners' agreement.
- S. 16Section 16 mandates partners to share personal profits earned from firm transactions or competing businesses with the partnership.
- S. 17Section 17 outlines how partners' rights and duties remain consistent after changes in firm constitution, term expiry, or new undertakings.
- S. 18A partner acts as the firm's agent for conducting its business under the Indian Partnership Act, 1932.
- S. 19Section 19 outlines the implied authority of a partner to conduct firm business, except for specific prohibited actions.
- S. 20Section allows partners to extend or restrict a partner's implied authority, but firm remains bound by partner's actions within implied authority unless third party knows of restriction.
- S. 21A partner can act to protect the firm from loss in emergencies, as if prudent in their own case.
- S. 22Section 22 states that a partner or third party must act in the firm's name to bind it.
- S. 23A partner's admission about the firm's affairs in regular business is evidence against the firm.
- S. 24Notice to an acting partner regarding firm affairs is deemed notice to the entire firm, unless there's fraud by or with that partner's consent.
- S. 25Section 25 states that each partner is jointly and individually liable for the firm's actions during their partnership.
- S. 26The firm is liable for losses or penalties caused by a partner's wrongful act in business.
- S. 27The firm is liable for losses caused by partners misapplying money or property received from third parties.
- S. 28Section 28 prohibits misrepresentation of partnership status, but continuing a firm's name posthumously doesn't hold estate liable.
- S. 29Section 29 of the Indian Partnership Act, 1932, limits a transferee's rights to profits and assets without interfering in firm operations.
- S. 30Section 30 allows minors admitted to partnership benefits with all partners' consent, entitling them to firm's profits and shares, but not personal liability.
- S. 31Section 31 of the Indian Partnership Act requires all existing partners' consent to introduce a new partner and limits new partner's liability for prior firm acts.
- S. 32Section 32 outlines conditions for a partner's retirement from a firm and their subsequent liability to third parties.
- S. 33Section 33 prevents partners from being expelled except through contractually agreed powers exercised in good faith.
- S. 34Section 34 states that a partner ceases to be a partner upon insolvency adjudication, and the firm's liability is unaffected if the firm isn't dissolved.
- S. 35The estate of a deceased partner is not liable for the firm's acts after his death if the partnership continues.
- S. 36Outgoing partners can compete with the firm but must not use the firm's name or solicit former clients, and can agree to reasonable non-compete terms.
- S. 37Outgoing partner's estate can claim share of subsequent profits if firm continues operations without final settlement.
- S. 38Section revokes a continuing guarantee for a firm upon any change in its constitution.
- S. 39Section 39 defines the dissolution of a firm as the end of partnership between all partners.
- S. 40Section 40 allows a partnership to dissolve by mutual agreement or as per pre-existing partners' contract.
- S. 41Section 41 mandates the dissolution of a firm if all partners are declared insolvent or an event makes the firm's business unlawful.
- S. 42Section 42 outlines conditions under which a partnership dissolves, including term expiry, project completion, partner death, or insolvency.
- S. 43Section 43 allows any partner to dissolve a partnership at will by giving written notice to all partners.
- S. 44Section 44 allows court-ordered dissolution of a firm on various grounds including partner's mental incapacity or misconduct.
- S. 45Partners remain liable for firm acts post-dissolution until public notice of dissolution is given.
- S. 46Section 46 allows partners to have firm's property applied to pay debts after dissolution, with surplus distributed according to their rights.
- S. 47Section 47 allows partners to continue managing firm affairs post-dissolution for winding up, except for an insolvent partner.
- S. 48Section outlines rules for settling accounts between partners after a firm's dissolution, prioritizing debt and capital repayment.
- S. 49Section 49 prioritizes firm debts over separate partner debts for payment from partnership and individual assets.
- S. 50Section 50 allows surviving partners or deceased partners' representatives to use firm name post-dissolution, barring personal profit use unless agreed.
- S. 51Section 51 allows partners who paid a premium to receive repayment if the partnership dissolves prematurely, except in cases of misconduct or pre-agreed no-return terms.
- S. 52Section 52 allows a partner to retain firm assets, rank as creditor, and seek indemnification if partnership is rescinded due to fraud or misrepresentation.
- S. 53Section 53 allows partners to prevent others from using the firm name or property post-dissolution, barring goodwill buyers.
- S. 54Section 54 allows partners to make valid agreements restricting their future similar business activities post-dissolution if the restrictions are reasonable.
- S. 55Section 55 allows dissolved firm's goodwill sale, restricts partners from competing post-sale, and validates reasonable non-compete agreements.
- S. 56The State Government can exempt a state or part of it from the provisions of this chapter by notification.
- S. 57The State Government can appoint Registrars of Firms to enforce the Indian Partnership Act, 1932.
- S. 58Section 58 outlines the process for registering a firm, including required details and restrictions on firm names.
- S. 59Section 59 mandates the Registrar to record and file a firm's statement upon compliance with prior registration requirements.
Chapter CHAPTER VII
- S. 60Section 60 allows registered firms to update their name and principal business location with the Registrar.
- S. 61Section 61 requires partners to notify the Registrar when a firm opens or closes a branch, and the Registrar records this in the Register of Firms.
- S. 62Section 62 requires partners to notify the Registrar of any name or address changes.
- S. 63Recording of changes in and dissolution of a firm
- S. 64The Registrar can correct errors in the Register of Firms to match filed partnership documents.
- S. 65Section allows a court to order amendments to the Register of Firms based on its decisions.
- S. 66Section allows inspection of partnership firm's register and filed documents for a prescribed fee.
- S. 67The Registrar provides certified copies of partnership firm register entries upon request and payment of a fee.
- S. 68Section 68 establishes that entries in the Register of Firms are conclusive evidence against the signatories and certified copies can prove firm registration and contents.
- S. 69Section 69 of the Indian Partnership Act, 1932, mandates that unregistered firms cannot sue in court for partnership-related rights unless partners are listed in the Register of Firms.
- S. 70Section penalizes false or incomplete information in partnership documents with up to three months' imprisonment and/or fines.
Chapter CHAPTER VII
- S. 71Section 71 empowers the State Government to make rules for fees, document forms, and procedures for the Registrar of Firms.
- S. 72Section 72 outlines the procedure for giving public notice regarding partnership changes, including retirement, dissolution, or election of minors.
- S. 73Repeals - [Rep
- S. 74Preserves existing rights, obligations, and legal proceedings under partnership law before the Act's commencement.