The document discusses provisions under Indian law regarding minors as partners. Section 30 of the Indian Partnership Act allows minors to be admitted as partners with the consent of all existing partners, subject to certain conditions. As a minor partner, they have rights to share capital and profits but are not personally liable for debts of the firm. When the minor reaches majority, they can elect to remain a partner and assume full personal liability retrospectively, or withdraw without liability after giving notice.

1. Minor and Partnership
under Indian Partnership Act
By:
Avnish Bhatt
Assistant Professor
The ICFAI University
Dehradun
avnish.advocate@gmail.com
avnish.bhatt@iudehradun.edu.in

2. Minor and Partnership
Law: Indian Partnership Act 1932
Relevant sections: Section 30
Statutory Perspective: The Indian Contract Act does not consider Minor as
a competent party for the purpose of Contract.
Thus a Minor cannot be a partner in a true sense.
.

3. Special Provision made by Indian Partnership Act 1930 under section 30, that
Minor can be admitted as a Partner to the benefits with consent of all
Partners subject to following:
1. Consent of all Partners needed, majority rule doesn't apply.
2. Partnership already in existence. A.A. Khan v. Amer Karim (1952) A.
Mys.131. (After the death of his father Minor wants to enter but court
held it is not possible as it is sole properiotership)
3. There cannot be Partnership consisting of all Minors. (Shivaram v.
Gourishankar AIR 1961 Bom 136)

4. Minor and Partnership (Section 30)
• Rights of Minor as Partner
a. Right to share Capital and Profits as per sharing
ratio.
b. Right to access the books
c. Right to file a suit to demand his share if leaving
Partnership

5. Limitation and Liabilities of Minor
Partner
a. Not Personally Liable.(to the extent of his share in the
Property)
b. Not entitled to take part in the conduct in Business.( No
representative capacity to bind the firm).
c. When Partnership insolvent his share will be with official
receiver or assignee

6. Minor and Partnership (Section 30)
• Position of Minor on attaining majority
Relevant section 30(5)
1. When elects to become/remain as a Partner
• Personally Liable to third parties from
retrospective effect. (English Law: not liable from
retrospective effect)
• Share of Profit shall remains the same.

7. 2. When elects not to become Partner
• Continue to be Liable until the date of the notice.
• His Share will not be liable after the notice
• Shall be entitle to sue the partners for his share of
Profits.