Hajeri lpartnershipact


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Importqnt sections of Indian Contact Act

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Hajeri lpartnershipact

  1. 1. 1 The Indian Partnership Act 1932 • Important points Partnership Partner Registration of a Firm Implied Authority of a Partner Registration of a Firm Partnership Deed Legal Entity? Admission of a Partner Retirement of a Partner Death of a Partner Dissolution of a partnership firm. Mutual Agency Rights and duties of a partner Leading cases Sample Questions SHANTILAL HAJERI
  2. 2. 2 Important section Numbers Definitions: 2 Partnership, partner, Firm: 4 Rights of partner 11, 12 Property of the firm: 14 Partner is agent: 18 Implied authority of partner 19 Joint & Several Liability 25 Minor admitted as partner 30 Dissolution of a firm 40 Effect of Non registration; 69 SHANTILAL HAJERI
  3. 3. 3 Partnership S-4 “Partnership” is the relation between persons who have agreed to share the profits of 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”, The name under which their business is carried on is called the “firm name”. No. of partners: Minimum 2 Maximum 20 Section 11 of Companies Act prohibits partnership consisting of more than 20 members SHANTILAL HAJERI
  4. 4. 4 Mutual Agency The real test of ‘partnership firm’ is ‘mutual agency’, i.e. whether a partner can bind the firm by his act, i.e. whether he can act as agent of all other partners. A partner is the agent of the firm for the purposes of the business of the firm. [section 18]. S-11 The mutual rights and duties of the partners of a firm may be determined by contract between the partners, Every partner has right to take part in the conduct of the business. [section 12(a)]. SHANTILAL HAJERI
  5. 5. 5 Rights & Liabilities S-14 Property and rights and interests in property acquired with money belonging to the firm are deemed to have been acquired for the firm. S-19 (1) The act of a partner to carry on business of the firm, binds the firm. The authority of a partner to bind the firm conferred by this section is called his “implied authority”. S-25 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. Liability of the firm is Unlimited. SHANTILAL HAJERI
  6. 6. 6 Minor Partner S-30(1) A minor may not be a partner in a firm, but, with the consent of all the partners he may be admitted to the benefits of partnership. S- 30 (2) Minor has a right to share of the property and of the profits of the firm & he may have access to and inspect and copy any of the accounts of the firm. S-30(3) Minor’s share is liable for the acts of the firm, but the minor is not personally liable for any such act. . SHANTILAL HAJERI
  7. 7. 7 Reconstitution of firm Death or insolvency of a partner means dissolution of the firm. Partnership can provide that the firm will not dissolve in such case. Dissolution of a firm (a) By agreement (section 40) (b) By insolvency (section 41) (c)On happening of certain contingency (section 42) (d) By notice if partnership is at will (section 43). (e) by Court u/s 44. SHANTILAL HAJERI
  8. 8. 8 Registration of a Firm Registration is not compulsory, Registration brings advantages S-69(1) No suit to enforce a right 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 S-69 (2) No suit shall be instituted in any Court by or on behalf of a firm against any third party unless the firm is registered . SHANTILAL HAJERI