The Indian Partnership Act Was Passed In 1932 To Define And

Amend The Law Relating To Partnership.

It Extends To The Whole Of India Except Jammu And Kashmir.

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.
 The Relationship Between Persons Who Agrees To
Carry On A Business In Common With A View To
Private Gain.
A partnership is a form of business in which two or
more Persons Upto A Maximum Of 20 Join Together
To Undertake Some Form Of Business Activity.
 Two or more persons
 Contract Or Agreement
 Lawful Business
 Sharing Of Profits
 Unlimited Liability
 Control Is Shared By All Partners.
 It Requires A Voluntary Association Of Persons Who Jointly
Own A Business And Intend To Conduct A Business. Some
of The Information Stated In The Partnership Agreement
Are:-
 The Name Of The Business.
 The Type Of Business The Partnership Operates.
 The Location Of Business.
 How Profits Will Be Shared.
 What Should Be Done If A Partner Dies Or Becomes
Bankrupt.
 How New Partners Will Be Admitted Into The Partnership.
 Partnership At Will
 Partnership For A Fixed Period
 Particular Partnership
 General Partnership.
 Actual Partner
 Sleeping Partner
 Nominal Partner
 Partner In Profits Only
 Minor Partner
 Partner By Estoppels.
 Easy To Form
 Large Financial Resources
 Sharing Risks
 Benefits Of Specialisation
 Flexibility In Operations
 Unlimited Liability
 Uncertain Life
 Limited Capital
 No Transferability Of Shares
 Lack Of Harmony
 Right To Take Part In Conduct Of The Business
[Section 12(a)]
 Right To Be Consulted [Section 12(c)]
 Right To Access To Accounts [Section 30(2)]
 Right To Interest On Capital [Section 13(d)]
 Right To Stop Admission Of A New Partner [Section 31]
 Right To Share In Profits [Section 13(b)]
 Right To Interest On Advances [Section 13(d)]
 According To Section 18 “Every Partner Is An Agent Of
The Firm For The Purpose Of The Firm”
 In Other Words, Every Partner Has The Capacity To
Bind Other Partners.
 He Does The Act For Carrying –On In The Usual Way,
Business Of The Kind Carried On By The Firm.
 The Act Is Done In The Name Of The Firm.

 Therefore All Partners Are Liable To The Third Parties

For The Acts Of Every Partner.
Express Authority Of A Partner :-
When A Partner Is Expressly Authorised By An
Agreement Of All Partners To Do Certain Acts On Behalf
Of The Firm. It Is Called Express Authority.

Implied Authority Of A Partner :-

In Addition To Express Authority ,The Partner Has
Implied Authority, The Partner Derives Implied
Authority From His Position In The Firm. Implied
Authority Of A Partner Is An Authority To Bind The Firm
By His Act Which Is Done Beyond The Extent Of Express
Authority.
 A Minor Is Not Capable Of Entering Into A Contract, An
Agreement By Or With A Minor Is Void.
 Since Partnership If Formed By An Agreement ,A Minor
Cannot Enter Into A Partnership Agreement, On The Basis Of
General Rule That A Minor Cannot Be A Promisor,But Can Be
A Promisee Or A Beneficiary.

 An Analysis Of Above Provision Highlights The Following

Conditions
 There Must Be Mutual Consent Of All Partners.
 A Minor Can Be Admitted Only To The Benefits Of
Partnership.
 The Minor Has Right To Inspect Books Of Accounts. No
Such Right In Respect Of Books Other Than Accounts ,
As They May Contain Secrets Which Should Restricted
To Real Partners Only.
 The Minor Is Not Personally Liable To The Third Parties
For The Debts Of The Firm. But His Liability Is Limited
Only Upto His Share In Partnership Assets And Profits.
 The Minor Cannot Bring Any Suit Against Partners For
An Account Of His Share Of The Profits Of The Firm
Except Where He Serves His Connection With The
Firm.
The Partnership Act 1932 Does Not Provides For The
Compulsory Registration Of Firm. It Has Left To The
Option Of The Firms To Get Them Registered.
 Obtain A Statement In The Prescribed Form From The
Office Of Registrar Of Firms Of The Area In Which Any
Place Of Business Of The Firm Is Situated.
 State The Following Information In The Statement:-
1) The Name Of The Firm
2) The Principal Place Of The Firm
3) The Name Of Other Places Where The Firm Carries
On Business
4) The Date When Each Partner Joined The firm
5) The Names In Full And Permanent Address Of The
Partner.
 Get The Statement Duly Signed By All Partners Or By
Their Authorised Agents.
 File The Statement Along with Prescribed Fees With The
Registrar Of The Firms Of The Area.
 Obtain A Certificate From The Registrar.
When A Registrar Is Satisfied That The Provisions Of
Section 58 Have Been Duly Complied With .He Record
An Entry Of The Statement In The Register Called
Register Of Firms And File The Statement. Change Of
Particulars Is Mentioned In Section 60-63.
 D=Death Of Partner
 I=Incapacity Of A Partner
 S=Stipulated Period Of Partnership Completed In The Case
Of Particular Partnership
 S=Serious Misconduct Of A Partner
 O=Object Is Completed (Particular Partnership)
 L=Lunacy Of Partner
 U=Unavoidable Conditions Like Huge Loss
 T=Transfer Of Interest Of The Firm
 I=Insolvency Of Firm
 O=Objectionable Unlawful Business
 N=Notice Of Dissolution By A Partner.
 Delhi Metro Rail Corporation
 Flyovers
 Private Sector Banks And Regional Rural Banks.