1Short title, extent and commencement
(1) This Act may be called the Indian Partnership Act, 1932. It extends to the whole of India 2[except the State of Jammu and Kashmir].] It shall come into f...
2Definitions
In this Act, unless there is anything repugnant in the subject or context,- an act of a firm means any act or omission by all the partners, or by any partne...
3Application of provisions of Act 9 of 1872
The un - repealed provisions of the Indian Contract Act, 1872, save in so far as they are inconsistent with the express provisions of this Act, shall contin...
4Definition of partnership, partner, firm and firm name
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 ...
5Partnership not created by status
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 busin...
6Mode of determining existence of partnership
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 relatio...
7Partnership at will
Where no provision is made by contract between the partners for the duration of their partnership,  or for the determination of their partnership, the partn...
8Particular partnership
A person may become a partner with another person in particular adventures or undertakings....
9General duties of partners
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 accou...
10Duty to indemnify for loss caused by fraud
Every partner shall indemnify the firm for any loss caused to it by his fraud in the conduct of the business of the firm....
11Determination of rights and duties of partners by contract between the partners
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 suc...
12The conduct of the business
Subject to contract between the partners,- every partner has a right to take part in the conduct of the business; every partner is bound to attend diligentl...
13Mutual rights and liabilities
Subject to contract between the partners,- a partner is not entitled to receive remuneration for taking part in the conduct of the business; the partners ar...
14The property of the firm
Subject to contract between the partners, the property of the firm includes all property and rights and interests in property originally brought into the sto...
15Application of the property of the firm
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....
16Personal profits earned by partners
Subject to contract between the partners- if a partner derives any profit for himself from any transaction of the firm, or from the use of the property or bu...
17Rights and duties of partners
Subject to contract between the partners- after a change in the firm-where a change occurs in the constitution of a firm, the mutual rights and duties of the...
18Partner to be agent of the firm
Subject to the provisions of this Act, a partner is the agent of the firm for the purpose of the business of the firm....
19Implied authority of partner as agent of the firm
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, bind...
20Extension and restriction of partners implied authority
The partners in a firm may, by contract between the parties, extend or restrict the implied authority of any partner. Not withstanding any such restriction, ...
21Partners authority in an emergency
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 pru...
22Mode of doing act to bind 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 nam...
23Effect of admissions by a partner
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 b...
24Effect of notice to acting partner
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...
25Liability of a partner for acts of the firm
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....
26Liability of the firm for wrongful acts of a partner
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 ...
27Liability of firm for misapplication by partners
Where- a partner acting within his apparent authority receives money or property from a third party and misapplies it, or a firm in the course of its busines...
28Holding out
Anyone 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...
29Rights of transferee or a partners interest
A transfer by a partner of his interest in the firm, either absolute or by mortgage, or by the creation by him of a charge on such interest, does not entitl...
30Minors admitted to the benefits of partnership
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 b...
31Introduction of a partner
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...
32Retirement of a partner
A partner may retire- with the consent of all the other partners, in accordance with an express agreement by the partners, or where the partnership is at will...
33Expulsion of a partner
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 ...
34Insolvency of a partner
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 f...
35Liability of estate of deceased partner
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 ...
36Right of outgoing partner to carry on competing business
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, ...
37Right of outgoing partner in certain cases to share subsequent profits
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...
38Revocation of continuing guarantee by change in firm
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, revoke...
39Dissolution of a firm
The dissolution of partnership between all the partners of a firm is called the dissolution of the firm.  The dissolution of partnership between all the ...
40Dissolution by agreement
A firm may be dissolved with the consent of all the partners or in accordance with a contract between the partners....
41Compulsory dissolution
A firm is dissolved- by the adjudication of all the partners or of all the partners but one as insolvent, or by the happening of any event which makes it un...
42Dissolution on the happening of certain contingencies
Subject to contract between the partners a firm is dissolved- if constituted for a fixed term, by the expiry of that term; if constituted to carry out one o...
43Dissolution by notice of partnership at will
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 t...
44Dissolution by the court
At the suit of a partner, the court may dissolve a firm on any of the following grounds, namely- that a partner has become of unsound mind, in which case the...
45Liability for acts of partners done after dissolution
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 bee...
46Rights of partners to have business wound up after dissolution
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 proper...
47Continuing authority of partners for purposes of winding up
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 notwit...
48Mode of settlement of accounts between partners
In settling the accounts of a firm after dissolution, the following rules shall, subject to agreement by the partners, be observed- losses, including defici...
49Payment of firm debts and of separate debts
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 ...
50Personal profits earned after dissolution
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 represe...
51Return of premium on premature dissolution
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 ...
52Rights where partnership contract is rescinded for fraud or misrepresentation
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 rescin...
53Right to restrain from use of firm name or firm property
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 pa...
54Agreements in restraint of trade
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...
55Sale of goodwill after dissolution
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...
56Power to exempt from application of this Chapter
The 3[State Government of any State], may, by notification in the Official Gazette, direct that the provisions of this Chapter shall not apply to 4[that Sta...
57Appointment of Registrars
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 an...
58Application for registration
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 ...
59Registration
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 calle...
60Recording of alterations in firm name and principal place of business
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 Regi...
61Noting of closing and opening of branches
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,...
62Noting of changes in names and addresses of partners
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 ...
63Recording of changes in and dissolution of a firm
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 pers...
64Rectification of mistakes
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 ...
65Amendment of Register by order of court
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 relat...
66Inspection of Register and filed documents
The Register of Firms shall be open to inspection by any person on payment of such fee as may be prescribed. All statements, notices and intimatio...
67Grant of copies
The Registrar shall on application furnish to any person, an payment of such fee as may be prescribed, a copy, certified under his hand, of any entry or po...
68Rules of evidence
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, intim...
69Effect of non-registration
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 partne...
70Penalty for furnishing false particulars
Any person who signs any statement, amending statement, notice or intimation under this Chapter containing any particular which he knows to be false or doe...
71Power to make rules
The 3[State Government] 13[may by notification in the Official Gazette make rules] describing the fees which shall accompany documents sent to the Registrar ...
72Mode of giving public notice
A public notice under this Act is given- where it relates to the retirement or expulsion of a partner from a registered firm, or to the dissolution of a reg...
73Repeal
[Rep. by the Repealing Act, 1938 (1 of 1938)]....
74Saving
Nothing in this Act or any repeal effected thereby shall affect or be deemed to affect- any right, title, interest, obligation or liability already acquire...
SCHEDULESSCHEDULE I
[Section 71 (1)] Document or Act in respect of which the fee is payable Statement under section 58 Statement under section 60 Intimation under section 61 Int...
SCHEDULE II
Enactment Repealed - [Rep. by Repealing Act, 1938 (1 of 1938)]. Foot Notes Substituted by AO 1950 for the former sub-section. Substituted for words except Par...
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