PARTNERSHIP ACT, 1932
(1) This Act may be called the Indian Partnership Act, 1932.
1[(2) It extends to the whole of India 2[except the State of Jammu and Kashmir].]
(3) It shall come into force on the 1st day of October, 1932, except section 69, which shall come into force on the 1st day of October, 1933.
State Amendments
Dadra and Nagar Haveli.—In section 1, for sub-section (3), substitute the following:—
“(3) It shall come into force at once except section 69 which shall come into force on the 1st day of July, 1966”.
[Vide Reg. 6 of 1963, as amended by Reg. 2 of 1965.]
Goa, Daman and Diu.—Same as in Dadra and Nagar Haveli ex
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 the firm;
(b) “business” includes every trade, occupation and profession;
(c) “prescribed” means prescribed by rules made under this Act;
(d) “third party” used in relation to a firm or to a partner therein means any person who is not a partner in the firm; and
(e) expressions used but not defined in this Act and defined in the Indian Contract Act, 1872 (9 of 1872), shall have the meanings assigned to them in that Act.
The un - repealed provisions of the Indian Contract Act, 1872, save in so far as they are inconsistent with the express provisions of this Act, shall continue to apply to firms.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” 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 with one another are called individually “partners” and collectively a “firm”, and the name under which their business is carried on is called the “firm name”.
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 such business.
State Amendment
Goa, Daman and Diu.—In section 5, for the words “Burmese Buddhist husband and wife carrying on business as such”, substitute the words “a husband and wife under the regime of communion of property carrying on business as such”.
[Vide Goa, Daman and Diu Act 6 of 1966, sec. 2 (w.e.f. 22-8-1966)].
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 facts taken together.
Explanation 1.—The sharing of profits or of gross returns arising from property by persons holding a joint or common interest in that property does not of itself make such persons partners.
Explanation 2.—The receipt by a person of a share of the profits of a business, or of a payment contingent upon the earning of profits or varying with the profits earned by a business, does not of itself make him a partner with the persons carrying on the business;
and in particular, the receipt of such share or payment—
(a) by a lender o
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’.
A person may become a partner with another person in particular adventures or undertakings.
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 affecting the firm to any partner or his legal representative.
State Amendment
Maharashtra.—In section 9, for the words “or his legal representative”, substitute the words “his heir or legal representative”.
[Vide Maharashtra Act 29 of 1984, sec. 3 (w.e.f. 1-1-1985)].
Every partner shall indemnify the firm for any loss caused to it by his fraud in the conduct of the business of the firm.
(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 implied by a course of dealing.
Such contract may be varied by consent of all the partners, and such consent may be expressed or may be implied by a course of dealing.
Agreements in restraints of trade.—(2) Notwithstanding anything contained in section 27 of the Indian Contract Act, 1872 (9 of 1872), such contracts may provide that a partner shall not carry on any business other than that of the firm while he is a partner.
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 to ordinary matters connected with the business may be decided by a majority of the partners, and every partner shall have the right to express his opinion, before the matter is decided, but no change may be made in the nature of the business without the consent of all the partners; and
(d) every partner has a right to have access to and to inspect and copy any of the books of the firm.
State Amendment
Mahar
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 by the firm;
(c) where a partner is entitled to interest on the capital subscribed by him such interest shall be payable only out of profits;
(d) a partner making, for the purposes of the business, any payment or advance beyond the amount of capital he has agreed to subscribe, is entitled to interest thereon at the rate of six per cent. per annum;
(e) the firm shall indemnify a partner in respect of payments made and liabiliti
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 and in the course of business of the firm, and includes also the goodwill of the business.
Unless the contrary intention appears, property and rights and interests in property acquired with money belonging to the firm are deemed to have been acquired for the firm.
Section 14 of the Indian Partnership Act, 1932, deals with the property of a partnership firm. It is a foundational provision that determines what constitutes partnership property and governs the rights of partners in relation to assets brought into or acquired by the firm. This section is crucial for understanding the distinction between individual property of partners and property belonging to the firm.
Section 14 states: "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 and in the course of the business of the firm, and includes also the goodwill of the business. Unless the contrary intention appears, property and rights and interests in property acquired with money belonging to the firm are deemed to have been acquired for the firm."
The section covers all types of property (movable and immovable), rights, and interests. It applies whether property is brought in at formation or acquired later. The section operates irrespective of formal documentation - no registered deed is required for converting individual property into partnership property.
Section 14 itself does not prescribe any punishment. However, Section 70 of the Act provides penalty for furnishing false particulars - any person who signs any statement containing false particulars commits an offence. The section is primarily declaratory of property rights rather than penal in nature.
Property Definition - Section 14 defines partnership property broadly to include all property, rights, and interests originally brought into the firm's stock or acquired for the firm, including goodwill. - [Section 14, Partnership Act, 1932]
Conversion Without Formality - Separate property of an individual partner can be converted into partnership property, and no formal document or agreement is necessary for such conversion; evidence of intention to make it firm property is sufficient. - [Sachin Jaiswal VS Hotel Alka Raje - 2025 4 Supreme 248]
Presumption of Firm Property - Property bought with money belonging to the firm is deemed to have been acquired for the firm unless the contrary intention appears; this presumption can be rebutted by evidence. - [MOHAN LAL BAHRI (DECEASED BY L. R. S) VS K. L. BAHRI - 1997 0 Supreme(All) 1383]
No Registration Required - A partner can bring immovable property into the stock or capital of the firm without a registered instrument; a conveyance deed is not necessary for transfer from partners to the firm. - [K. D. Pandey VS Commissioner Of Wealth-Tax - 1977 0 Supreme(All) 94]
Tenancy Rights as Asset - Tenancy rights of a firm can be treated as one of its assets while making settlement of accounts upon dissolution, provided the partnership deed evidences such rights and other materials establish them. - [Rappai VS Pushpam - Current Civil Cases (2010)]
Intention of Parties Paramount - Exclusive property of an individual partner does not become partnership property without clear evidence of intention to treat it as such; the intention of parties and necessity of evidence for conversion is emphasized. - [Chathu Kottollathil S/o Kannan Therath vs Parveettil Haris S/o Pakran - 2025 0 Supreme(Ker) 1734]
Property Not in Deed Excluded - Property which is not revealed in the partnership deed is not taken into account as an asset in the partnership firm. - [Joseph Kutty VS George Mathew - 2013 0 Supreme(Ker) 39]
Burden of Proof - Ownership of property alleged as partnership assets must be proven; the plaintiff must establish that the suit property was acquired for the partnership or that they financially contributed to its purchase. - [S.Vaidhyanathan vs C.Palaniappan (Died) - 2024 0 Supreme(Mad) 2403]
Firm Name Change - No need for registration of document in title of immovable property when purchased in old name and after alteration in the name of the partnership firm. - [Park Residency Ernakulam, Represented by its Managing Partner Kuruvila Augustine VS State of Kerala Represented by Secretary to Government Revenue Department Secretariat Thiruvananthapuram - 2013 0 Supreme(Ker) 97]
Dissolution Continuation - Despite dissolution of a partnership firm, the firm continues to hold properties as the owner until the completion of the winding up process. - [COMMISSIONER OF INCOME-TAX VS MANGALORE GANESH BEEDI WORKS - 2002 0 Supreme(Kar) 792]
LLP as Partner - An LLP, being a body corporate and falling within the definition of 'person', can enter into a partnership with an individual and form a partnership firm under Section 14. - [Jayamma Xavier VS Registrar of Firms - 2021 0 Supreme(Ker) 684]
Attachment of Shares - The shares of common partners in a partnership firm cannot be attached in proceedings under Order 38, Rule 5, CPC, as the property of a firm is owned by the firm and not by individual partners. - [BISHAMBHAR DAYAL VS LALA MOOL CHAND AGRAWAL - 1981 0 Supreme(All) 162]
Surviving Partner's Liability - The continuing partner under a new firm carrying the same goodwill is liable to render accounts even after dissolution of the firm on the demise of a partner. - [Rajalakshmi VS Sarojini - 2010 0 Supreme(Mad) 5360]
Goodwill as Asset - Under the Partnership Act, 1932, it is expressly declared that goodwill of a business is an asset; whether goodwill has substantial value may be determined on facts of each case. - [Khushal Khemgar Shah VS Khorshed Banu Dadiba Boatwalla - 1970 0 Supreme(SC) 46]
Retiring Partner's Rights - A partnership firm is the owner of property brought into the partnership as an asset; a partner who retires from the partnership is not entitled to claim ownership of the property. - [BROADWAY CENTRE VS GOPALDAS BAGRI - 2002 0 Supreme(Cal) 68]
Deposits by Strangers - Deposits made by non-partners who are strangers to the firm cannot be blended with partnership funds; Section 14 has no application to such deposits as they are not property of the firm. - [RAJESH KUMAR AGRAWAL VS VIRENDRA KUMAR AGRAWAL - 1993 0 Supreme(All) 292]
Mutual Agreement Transfer - Partners of a firm can, by mutual agreement, transfer an asset of the firm to a third party; goodwill of a firm is a transferable asset. - [Bhaktimala Beedi Factory VS Commissioner of Income Tax - 1995 0 Supreme(AP) 1037]
Tenancy Rights Distinction - Tenancy right of a partner is separate property over which the partnership has no claim unless the partner explicitly offered it as an asset of the partnership firm. - [Shashi Kapila VS R. P. Ashwin - 2001 1 Supreme 254]
No Community of Interest - Partners hold immovable property of the firm as tenants-in-common and not as joint tenants; there is no community or unity of interests between partners regarding firm property. - [Nariman Aspandiar Irani (Dr. ) VS Adi Merwan Irani (Dr. ) - 1989 0 Supreme(Bom) 154]
Implied Contract Requirement - There must be an implied or express contract among partners for treating property as partnership property under Section 14. - [Khaja Mohideen VS M. Mohammed Saliha - 2013 0 Supreme(Mad) 2278]
Auction for Tenancy Rights - Auction is a feasible method to enable a successful bidder to acquire tenancy rights over a building when the firm has tenancy rights as an asset. - [Rappai VS Pushpam - Current Civil Cases (2010)]
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.
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 profit and pay it to the firm;
(b) if a partner carries on any business of the same nature as and competing with that of the firm, he shall account for and pay to the firm all profits made by him in that business.
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 the change, as far as may be;
(b) after the expiry of the term of the firm, and.—where a firm constituted for a fixed term continues to carry on business after the expiry of that term, the mutual rights and duties of the partners remain the same as they were before the expiry, so far as they may be consistent with the incidents of partnership at will; and
(c) where additional undertakings are carried out.—where a firm constituted to carry out one or more adventures or undertakings carries out other adventures or undertakings, the mutual rig
Subject to the provisions of this Act, a partner is the agent of the firm for the purpose of the business 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 partner to bind the firm conferred by this section is called his “implied authority”.
(2) In the absence of any usage or custom of trade to the contrary, the implied authority of a partner does not empower him to—
(a) submit a dispute relating to the business of the firm to arbitration,
(b) open a banking account on behalf of the firm in his own name,
(c) compromise or relinquish any claim or portion of a claim by the firm,
(d) withdraw a suit or proceeding
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 binds the firm, unless the person with whom he is dealing knows of the restriction or does not know or believe that partner to be a partner.
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 the 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 an intention to bind the firm.
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.
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 with the consent of that partner.
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.
Section 25 of the Indian Partnership Act, 1932, delineates the scope of liability of partners in a firm for acts performed in the course of business. It establishes the principle that each partner is jointly and severally liable for all acts of the firm during the period they are a partner, emphasizing the collective responsibility and accountability within partnership relationships.
Section 25 states:"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."This provision underlines the dual liability—joint liability with other partners and individual (separate) liability—of each partner for acts performed in the course of business.
Section 25 itself does not prescribe punishment; rather, it defines liability. However, breaches or contraventions (e.g., fraudulent acts, wrongful acts) under the law can lead to penalties, fines, or criminal proceedings if applicable. For instance, partners may be liable for penalties under the Indian Penal Code or other statutes if their acts are unlawful.
In conclusion, Section 25 of the Indian Partnership Act, 1932, codifies the joint and several liability of partners for acts performed during the period of their partnership, emphasizing the collective responsibility and personal liability of each partner, which extends into civil and criminal liability domains. The law aims to protect third-party interests and ensure accountability within partnership arrangements.
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 any penalty is incurred, the firm is liable there for to the same extent as the partner.
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 or property is misapplied by any of the partners while it is in the custody of the firm the firm is liable to make good the loss.
(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 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 is 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.
(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 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.
(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.
(2) 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.
(3) Such minor’s share is liable for the acts of the firm, but the minor is not personally liable for any such act.
(4) 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 accordanc
Legal Comments
"Topic" - Section 30 of Indian Partnership Act, 1932 governs minors admitted to partnership benefits; minors cannot be full partners, but may be admitted to benefits with adult consent - [Commissioner of Income Tax, Mysore, Bangalore VS Shah Jethaji Phulchand, Davangere - 1965 0 Supreme(SC) 389]
"Scope" - Section 30 applies to whether a minor can be admitted to benefits or must be a full partner; it does not allow a minor to have personal liability; any deed admitting a minor as full partner breaches Section 30 - [Dharam Vir VS Jagan Nath - 1966 0 Supreme(P&H) 163]
"Essential ingredients" - (i) existence of a partnership deed; (ii) consent of all existing adult partners; (iii) designation of minor as beneficiary rather than full partner; (iv) procedures for registration where relevant (e.g., IT Act, 26A) - [Baikunta Nath Chuckerbutty VS Hara Lal Pal Chowdhury - 1911 0 Supreme(Cal) 345], [NARANBHAI AMTHALAL PANCHAL VS RAMCHANDRA SOMNATH PANCHAL - 1994 0 Supreme(Guj) 190]
"Minor admitted to benefits" - Majority decisions consistently hold minor admitted to benefits does not make them a personal partner; their liability extends to their share in profits and losses, not personal liability, with six-month rule after majority to elect – if no notice, they become partner at expiry of six months - [N K Dalela VS VIth Addl D J Kanpur Nagar - 1996 0 Supreme(All) 152], [Commissioner Of Income-Tax VS Mathura Prasad Annoolal - 1978 0 Supreme(All) 27]
"Registration implications" - Registration under IT Act (Section 26A) can be affected if deed in effect makes minor a full partner; courts require deeds to reflect only benefits or require rectification to avoid invalidating registration - [Banka Mal Lajja Ram & Co. VS Commissioner Of Income Tax, Delhi - 1953 0 Supreme(P&H) 49], [00400018169], [NARAYAN PRASAD VIJAIVARGIYA VS COMMISSIONER OF INCOME-TAX - 1975 0 Supreme(Cal) 26]
"Continuation of registration after majority" - Where a minor attains majority, there is a presumption of continuity for six months; no immediate change in constitution; later changes require proper amendments and compliance with Form No. 12 and Rule 22(5) - [Commissioner Of Income-Tax VS Nirmal Kumar - 1990 0 Supreme(MP) 230], [N K Dalela VS VIth Addl D J Kanpur Nagar - 1996 0 Supreme(All) 152]
"Liability after majority" - Even after majority, minor’s liability remains limited to the extent of benefits; they are not personally liable for firm debts, unless a separate agreement states otherwise; continuation of registration requires declaring no change or proper amendment - [N K Dalela VS VIth Addl D J Kanpur Nagar - 1996 0 Supreme(All) 152], [Commissioner of Income Tax VS S. Chidambarathanu - 1996 0 Supreme(Mad) 247]
"Arbitration/Section 48 interplay" - In disputes involving dissolution or winding up, Section 48 of Partnership Act governs, and arbitrators must adhere to its provisions; post-award challenges under Arbitration Act do not automatically expand Section 69(3) reach; registration issues may arise separately - [Asandas Mitharam Narsinghani VS Tekchand Mitharam Sevakramani - 1999 9 Supreme 193], [00900004615]
"Suits by or against firms" - Under Section 69(2) and Order 30 CPC, a firm may sue or be sued; the “persons suing” are the partners at the time of institution; unregistered firms and absent partners raise jurisdictional issues; proper representation and authorization are critical - [SHANKER HOUSING CORPORATION (EXT. ) VS MOHAN DEVI AND EIGHT OTHERS - 1977 0 Supreme(Del) 153], [Bombay Trading Co. VS Jai Santoshi Maa Enterprises - Current Civil Cases (2012)]
"Mother as guardian case" - Where minor is admitted via mother as guardian (Income Tax context), courts confirm guardian’s signing is not mandatory for validity of registration under IT Act; the minor’s rights and benefits still govern; but registration validity depends on compliance with Section 30 - [Banka Mal Lajja Ram & Co. VS Commissioner Of Income Tax, Delhi - 1953 0 Supreme(P&H) 49], [Srinivasa Stainless Steel and Moulding Works VS Commissioner of Income Tax - 1987 0 Supreme(AP) 142]
"Set-off and internal debt" - A partner cannot discharge a separate personal debt against firm debts to prejudice co-partners; set-off arrangements must be scrutinized to ensure not impairing other partners’ rights; this maintains the distinction between personal liability and firm liability under Section 30(3) - [Baikunta Nath Chuckerbutty VS Hara Lal Pal Chowdhury - 1911 0 Supreme(Cal) 345]
"Death of partner/survivorship" - In cases where a partner dies during proceedings, continuation and substitution must respect Rule 4 of Order 30 and the status of the firm; successors or legal representatives may participate, but the firm’s status and the partnership deed require proper amendment - [KRISHNA CHANDRA AGARWALLA VS SHANTI PRASAD JAIN - 1980 0 Supreme(Cal) 435], [NERGISH MINOO PAVRI VS PRAMOD KISHANCHAND GUPTA - 2009 0 Supreme(Bom) 1490]
"Reconstitution and six-month rule" - When a minor admitted to benefits attains majority, the rights and liabilities persist until expiry of six months, during which no change in the constitution is required; after that, amendments to the deed are often necessary - [Commissioner Of Income-Tax VS Mathura Prasad Annoolal - 1978 0 Supreme(All) 27], [N K Dalela VS VIth Addl D J Kanpur Nagar - 1996 0 Supreme(All) 152]
"Minor partnership invalidity" - If a deed makes a minor a full partner, the deed is invalid; courts may annul registration and/or require reformation to reflect benefits-only admission, especially for IT registration purposes - [Dharam Vir VS Jagan Nath - 1966 0 Supreme(P&H) 163], [BHAKTIBAI MOHANLAL PATEL VS PARI VITHALDAS GOAPLDAS - 1978 0 Supreme(Guj) 105]
"Guardian signature requirement" - Courts have held that guardian signing is not mandatory for minor admitted to benefits to validate certain registrations; however, failure to obtain proper signatories may affect registration validity under IT rules - [Srinivasa Stainless Steel and Moulding Works VS Commissioner of Income Tax - 1987 0 Supreme(AP) 142], [NARANBHAI AMTHALAL PANCHAL VS RAMCHANDRA SOMNATH PANCHAL - 1994 0 Supreme(Guj) 190]
"Dissenting note on wagering contracts" - Some decisions have discussed partnerships formed for wagering-like forward contracts; these are generally treated under different policy and not necessarily under Section 30 itself, but context matters in assessing validity of the deed - [MAHADEODAS VS GHERULAL PARAKH - 1953 0 Supreme(Cal) 66]
"Enforcement and remedies" - When a firm is validly constituted under Section 30, remedies include dissolution and accounts under Partnership Act and enforcement through appropriate courts; improper admission of minor as partner complicates enforcement and requires rectification - [VIJAYCHANDRA PRABHATILAL SHARMA VS MANEK METAL SYNDICATE BOMBAY - 1989 0 Supreme(Guj) 176], [NAVKATAN PHARMACEUTICAL AND CHEMICAL WORKS,jamnagar VS MINOR KETANKUMNR DAMJI SHAH - 1992 0 Supreme(Guj) 159]
"Real-world practice" - Practical compliance issues include ensuring the instrument of partnership and Form No. 12 (for IT continuity) reflect accurate signatories, including minors admitted to benefits, and that amendments align with six-month rule and Rule 22(5) and 24; failure to do so invites legal challenges/registration issues - [Commissioner Of Income-Tax VS Nirmal Kumar - 1990 0 Supreme(MP) 230], [NARANBHAI AMTHALAL PANCHAL VS RAMCHANDRA SOMNATH PANCHAL - 1994 0 Supreme(Guj) 190]
"Key takeaway" - Section 30 preserves a clear boundary: minors cannot be partners; they may be admitted to benefits with adult consent, and the liability framework is limited; registration and continuation hinge on strict adherence to statutory wording and procedural forms - [Commissioner of Income Tax, Mysore, Bangalore VS Shah Jethaji Phulchand, Davangere - 1965 0 Supreme(SC) 389], [NARAYAN PRASAD VIJAIVARGIYA VS COMMISSIONER OF INCOME-TAX - 1975 0 Supreme(Cal) 26]
(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 provisions of section 30, a person who is introduced as a partner into a firm does not thereby become liable for any act of the firm done before he became 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 intention to retire.
(2) A retiring partner may be discharged from any liability to any third party for acts of the firm done before his retirement by an agreement made by him with such third party and the partners of the reconstituted firm, and such agreement may be implied by a course of dealing between such third party and the reconstituted firm after he had knowledge of the retirement.
(3) Notwithstanding the retirement of a partner from a firm, he and the
Section 32 of the Indian Partnership Act, 1932, addresses the retirement of partners from a partnership firm. It outlines the conditions under which a partner may retire and the implications of such retirement on the liabilities of the retiring partner, particularly in relation to third parties.
By giving written notice if the partnership is at will.
Liability Post-Retirement:
This commentary provides a comprehensive overview of Section 32 of the Partnership Act, 1932, emphasizing the legal implications of a partner's retirement and the necessary conditions for discharging liabilities.
(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 apply to an expelled partner as if he were a retired 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 the firm is not dissolved by the adjudication of a partner as an insolvent, the estate of a partner so adjudicated is not liable for any act of the firm and the firm is not liable for any act of the insolvent, done after the date on which the order of adjudication is made.
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.
(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 as carrying on the business of the firm, or
(c) solicit the custom of persons who were dealing with the firm before he ceased to be a partner.
Agreements in restraint of trade.—(2) A partner may make an agreement with his partners that on ceasing to be a partner he will not carry on any business similar to that of the firm within a specified period or within a specified local limits; and, notwithstanding anything contained in section 27 of the Indian Contract Act, 1872 (9 of 1872), such agreement shall be valid if the restrict
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 settlement of accounts as between them and the outgoing partner or his estate, then, in the absence of a contract to the contrary, the outgoing partner or his estate is entitled at the option of himself or his representatives to such share of the profits made since he ceased to be a partner as may be attributable to the use of his share of the property of the firm or to interest at the rate of six per cent. per annum on the amount of his share in the property of the firm:
Provided that whereby contract between the partners an option is given to surviving or continuing partners to purchase the interest of a deceased or outgoing partner, and that option is duly exercised, the estate of the d
Section 37 of the Indian Partnership Act, 1932, addresses the rights of a partner who ceases to be a partner—either by death or otherwise—and the subsequent treatment of profits and assets during the period of carry-on business without final settlement of accounts. It embodies principles of equitable justice for outgoing partners or their estates, especially when the remaining partners continue the business using partnership assets.
Section 37 provides that:- When a member of a firm dies or ceases to be a partner,- And the surviving or continuing partners carry on the business with the property of the firm,- Without a final settlement of accounts between them and the outgoing partner or his estate,- The outgoing partner or his legal representatives are entitled, at their option, - To such share of the profits made since ceasing to be a partner, attributable to the use of their share of the property, or - To interest at 6% per annum on the amount of their share in the property,- Unless there is a contract to the contrary, or an option to purchase the interest has been exercised.
This concise commentary integrates the core provisions, judicial interpretations, and principles underlying Section 37 of the Indian Partnership Act, 1932, highlighting its role in safeguarding the interests of outgoing partners and their estates during the continuation of business without final settlement.
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 in the constitution of the firm.
"DISSOLUTION OF A FIRM"
The dissolution of partnership between all the partners of a firm is called the ‘dissolution of the firm’.
A firm may be dissolved with the consent of all the partners or in accordance with a contract between the partners.
A firm is dissolved,—
(a) by the adjudication of all the partners or of all the partners but one as insolvent, or
(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 than one separate adventure or undertaking is carried on by the firm the illegality of one or more shall not of itself cause the dissolution of the firm in respect of its lawful adventures and undertakings.
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 the death of a partner; and
(d) by the adjudication of a partner as an insolvent.
(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 in the notice as the date of dissolution or, if no date is so mentioned, as from the date of the communication of the notice.
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 partner who has become of unsound mind as by any other partner;
(b) that a partner, other than the partner suing, has become in any way permanently incapable of performing his duties as partner;
(c) that a partner, other than the partner suing, is guilty of conduct which is likely to affect prejudicially the carrying on of the business, regard being had to the nature of the business;
(d) that a partner, other than the partner suing, wilfully or persistently commits breach of agreements relating to the management of the affai
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, until public notice is given of the dissolution:
PROVIDED that the estate of a partner who dies, or who is adjudicated an insolvent, or of a partner who, not having been known to the person dealing with the firm to be a partner, retires from the firm, is not liable under this section for acts done after the date on which he ceases to be a partner.
2. Notices under sub-section (1) may be given by any partner.
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, and to have the surplus distributed among the partners or their representatives according to their rights.
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 affair of the firm and to complete transactions begun but unfinished at the time of the dissolution, but not otherwise:
Provided that the firm is in no case bound by the acts of a partner who has been adjudicated insolvent; but this proviso does not affect the liability of any person who has after the adjudication represented himself or knowingly permitted himself to be represented as a partner of the insolvent.
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, by the partners individually in the proportions in which they were entitled to share profits;
(b) the assets of the firm, including any sums contributed by the partners to make up deficiencies of capital, shall be applied in the following manner and order:—
(i) in paying the debts of the firm to third parties;
(ii) in paying to each partner rateably what is due to him from the firm for advances as distinguished from capital;
(iii) in payin
Section 48 of the Indian Partnership Act, 1932, provides the statutory framework for the settlement of accounts between partners upon the dissolution of a partnership. It delineates the order and manner in which assets and liabilities are to be addressed to ensure equitable distribution and finalization of partnership affairs.
Section 48 prescribes that, after dissolution, the assets of the firm, including any sums contributed by partners to make up deficiencies, shall be applied in the following order:- Paying the debts of the firm to third parties.- Paying to each partner rateably what is due to him for advances (distinguished from capital).- Paying to each partner rateably what is due on account of capital.- Distributing the residue among partners in proportion to their share of profits, unless otherwise agreed.
This section emphasizes that the mode of settlement is subject to any agreement among partners that may specify a different procedure.
There are no specific penal provisions or punishments prescribed under Section 48 itself. However, non-compliance with the statutory procedure may lead to legal disputes, setting aside of settlement, or court intervention to enforce proper settlement as per law.
"Subject to agreement" - The section explicitly states that the prescribed mode of settlement can be altered by mutual agreement among partners, providing flexibility in settlement procedures. [Section 48, Indian Partnership Act, 1932]
"Order of application of assets" - The hierarchy ensures that liabilities to third parties are cleared first, followed by advances and capitals, safeguarding creditors' rights and ensuring equitable treatment of partners. [Section 48, Indian Partnership Act, 1932]
"Application of contributions" - Sums contributed by partners to cover deficiencies are recognized as part of the firm's assets and are to be utilized accordingly, aligning with principles of equitable distribution. [Section 48, Indian Partnership Act, 1932]
"Settlement after dissolution" - The section provides a clear legal framework for winding up, emphasizing that the process is to be carried out in a manner that balances interests of creditors and partners. [Section 48, Indian Partnership Act, 1932]
"Partnership assets and liabilities" - Assets are to be liquidated, liabilities paid, and surplus distributed, but the actual division of specific assets among partners is subject to agreement or further legal proceedings. [Section 48, Indian Partnership Act, 1932]
"Legal enforceability" - The prescribed mode of settlement is mandatory unless explicitly waived by mutual agreement, and failure to follow it may lead to legal challenges or court intervention. [Supreme Court in Asandas Mitharam Narsinghani v. Tekchand Mitharam Sevakramani, 1993]
"Relation to dissolution" - The section is directly linked to the process of dissolution, marking it as the primary legal provision governing the final settlement of partnership affairs. [Chapter VI, Indian Partnership Act, 1932]
"No requirement of registration" - Distribution of assets and settlement under Section 48 do not require registration of specific documents, as the section deals with the mode of settlement, not transfer of property per se. [Supreme Court in various judgments]
"Liability of partners" - The section underscores that partners' liabilities are settled before surplus distribution, aligning with principles of creditor protection and equitable sharing. [Section 48, Indian Partnership Act, 1932]
"Partnership property" - Property belonging to the partnership is to be liquidated and distributed as per the hierarchy, and specific assets are not individually owned by partners unless explicitly agreed. [Supreme Court rulings]
"Implication of non-compliance" - Ignoring the statutory order may lead to disputes, setting aside of settlements, or court orders to enforce proper settlement procedures. [Relevant case law]
"Deviations by agreement" - Partners can agree to alter the prescribed order, provided such agreement is valid and documented, offering flexibility in settlement procedures. [Section 48, Indian Partnership Act, 1932]
"Settlement of accounts" - The process involves settling liabilities, advances, and capital, with surplus to be divided, ensuring transparent and fair distribution. [Section 48, Indian Partnership Act, 1932]
"Legal recognition" - The section provides a statutory basis for the winding-up process, which courts recognize and enforce, ensuring orderly settlement of partnership affairs. [Supreme Court and High Court judgments]
"Legal consequences of dissolution" - Dissolution triggers a legal obligation to settle accounts strictly following the hierarchy, preventing arbitrary division or asset transfer. [Legal literature and case law]
"Partnership assets as joint property" - Assets are deemed to belong jointly to partners; individual ownership is only in the residual or as per specific agreements. [Supreme Court decisions]
"Role of courts" - Courts oversee and enforce the proper application of Section 48, especially in disputes over the order of settlement or distribution of assets. [Section 48, Indian Partnership Act, 1932]
"Importance of proper documentation" - While the section does not require registration, proper documentation of agreements and settlements is crucial to prevent disputes. [Legal commentary and case law]
This concise legal commentary highlights the significance of Section 48 in ensuring a fair, orderly, and legally compliant settlement of partnership affairs post-dissolution, emphasizing the importance of adhering to the prescribed hierarchy and recognizing the parties' ability to deviate through agreement.
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 is any surplus, then the share of each partner shall be applied in payment of his separate debts or paid to him. The separate property of any partner shall be applied first in the payment of his separate debts, and the surplus (if any) in the payment of the debts of the firm.
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 and before its affairs have been completely wound up:
Provided that where any partner or his representative has brought the goodwill of the firm, nothing in this section shall affect his right to use the firm name.
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 premium or of such part thereof as may be reasonable, regard being had to the terms upon which he became a partner and to the length of time during which he was partner, unless,—
(a) the dissolution is mainly due to his own misconduct, or
(b) the dissolution is in pursuance of an agreement containing no provision for the return of the premium or any part of it.
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, or a right of retention of, the surplus or the assets of the firm remaining after the debts of the firm have been paid, for any sum paid by him for the purchase of a share in the firm and for any capital contributed to him;
b. to rank as a creditor of the firm in respect of any payment made by him towards the debts of the firm; and
c. to be indemnified by the partner or partners guilty of the fraud or misrepresentation against all the debts of the firm.
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 the firm name or from using any of the property of the firm for his own benefit, until the affairs of the firm have been completely wound up:
Provided that where any partner or his representative has bought the goodwill of the firm, nothing in this section shall affect his right to use the firm name.
Section 53 of the Indian Partnership Act, 1932 is a pivotal provision dealing with the post-dissolution rights of partners. It balances the statutory right of remaining partners to continue the business in the firm's name against the incoming partner's contractual right to use the goodwill they brought into the partnership, which they are entitled to continue using permanently. This section acts as a temporary restraint mechanism designed to protect the residual partners from misappropriation of firm assets until the final settlement of accounts.
The core provision states that after a firm is dissolved, every partner or their representative may, in the absence of a contract between the partners to the contrary, restrain any other partner or their representative from carrying on a similar business in the firm's name or from using any of the property of the firm for their own benefit until the affairs of the firm are completely wound up. Crucially, the section contains a proviso: if a partner has brought the goodwill of the firm, this section does not affect their right to use the firm's name even after the affairs are wound up.
Based on judicial interpretation, the following elements are essential for invoking Section 53:* Dissolution of Firm: There must be a valid dissolution of the partnership, either by notice (for partnership at will) or operation of law.* Ownership of Goodwill/Property: The restraining partner(s) must have an interest in the goodwill or property of the firm.* Absence of Contract to the Contrary: The partnership deed must not contain an express clause allowing a partner to continue using the firm name after dissolution.* Non-Attainment of Final Settlement: The affairs of the firm must not be completely wound up.* Exception for Buying Goodwill: If a partner purchased the goodwill of the firm (often known as a "fancy name partner"), this right later converts to a proprietary right allowing them to use the name indefinitely.
While the Act itself does not prescribe a specific criminal penalty (like fine or imprisonment) for a direct contravention of Section 53, the violation creates significant civil liabilities:* Injunctions: The primary remedy is the granting of a temporary or permanent injunction restraining the violating partner.* Appointment of Receiver: Courts may appoint a receiver to take charge of firm assets and books of account to prevent alienation or misuse.* Accountability: The violating partner is liable to render strict accounts for any profits derived from the wrongful use of the firm name or property.* Alienation Bars: Any transfer or alienation made during the period of violation without the consent of other partners (where applicable) may be challenged as fraudulent.* Brand Dilution: Though not a statutory "punishment," the violating partner risks losing the goodwill they sought to exploit by being legally barred from using the established business reputation.
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 notwithstanding anything contained in section 27 of the Indian Contract Act, 1872 (9 of 1872), such agreement shall be valid if the restrictions imposed are reasonable.
(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 seller of goodwill.—(2) Where the goodwill of a firm is sold after dissolution, a partner may carry on a business competing with that of the buyer and he may advertise such business, but, subject to agreement between him and the buyer, he may not,—
(a) use the firm name,
(b) represent himself as carrying on the business of the firm, or
(c) solicit the custom of persons who were dealing with the firm before its dissolution.
Agreements in restraint of tra
The 1[State Government of any State] may, by notification in the Official Gazette, direct that the provisions of this Chapter shall not apply to 2[that State] or to any part thereof specified in the notification.
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1. Subs. by the A.O. 1937, for “Governor General in Council”.
2. Subs. by the A.O. 1937, for “any Province”.
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(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 of section 21 of the Indian Penal Code (45 of 1860).
State Amendments
Maharashtra.—For section 57, substitute the following section, namely,—
“57. Appointment of Registrar of Firms and Deputy Assistant Registrars of
Firms.—(1) The State Government may, by notification in the Official Gazette, appoint a Registrar of Firms who shall exercise, perform and discharge the powers, functions and duties of the Registrar under this Act throughout t
(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 form and accompanied by the prescribed fee, stating,—
(a) the firm name,
(b) the place or principal place of business of the firm,
(c) the names of any other places where the firm carries on business,
(d) the date when each partner joined the firm,
(e) the names in full and permanent addresses of the partners, and
(f) the duration of the firm.
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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 statement1.
STATE AMENDMENTS
Maharashtra.—Renumber section 59 as sub-section (1) of that section, and,—
(a) in sub-section (1) as so renumbered, after the words “file the statement”, insert the words “on the date such entry is recorded and such statement is filed, the firm shall be deemed to be registered,”;
(b) after sub-section (1) as so renumbered, insert the following sub-section, namely:—
“(2) The firm, which is registered, shall use the brackets and word “(Register
(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, specifying the alteration and signed and verified in the manner required under section 58.
(2) When the Registrar is satisfied that the provisions of sub-section (1) have been duly complied with, he shall amend the entry relating to the firm in the Register of Firms in accordance with the statement, and shall file it along with the statement relating to the firm filed under section 59.
State Amendment
Maharashtra.—In section 60,—
(a) for sub-section (1), substitute the following sub-section, namely:—
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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, who shall make a note of such intimation in the entry relating to the firm in the Register of Firms, and shall file the intimation along with the statement relating to the firm filed under section 59.
State Amendment
Maharashtra.—In section 61, for the words “may send intimation thereof to the Registrar, who shall”, substitute the following words, namely:—
“shall send intimation thereof to the Registrar, within a period of 90 days from the date of such discontinuance or, as the case may be, from the date on which the firm begins to carry on business at su
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 manner provided in section 61.
(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 any such partner or person specially authorised in this behalf, may give notice to the Registrar of such change or dissolution, specifying the date thereof; and the Registrar shall make a record of the notice in the entry relating to the firm in the Register of Firms, and shall file the notice along with the statement relating to the firm filed under section 59.
Recording of withdrawal of a minor.—(2) When a minor who has been admitted to the benefits of partnership in a firm attains majority and elects to become or not to become a partner, and the firm is then a registered firm, he, or his agent specially authorised in this behalf, may give notice to t
(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 by all the parties who have signed any document relating to a firm filed under this Chapter, the Registrar may rectify any mistake in such document or in the record or note thereof made in the Register of Firms.
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.
(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.
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.
(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.
(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 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 right 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,—
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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.
State Amendment
Maharashtra.—(1) In section 70, for the words “shall be punishable with imprisonment which may extend to three months, or with fine, or with both”, substitute the following words, namely:—
“shall, on conviction, be punished with imprisonment for a term which may extend to one year, or with fine, or with both:
Provided that in th
(1) The 1[State Government] 2[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, 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) prescribi
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 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 relate 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.
[Rep. by the Repealing Act, 1938 (1 of 1938), sec. 2 and Sch.].
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
(c) 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
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