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Act9
Enacted 1932

The Indian Partnership Act, 1932

In force 74 sections Corporate Affairs

An Act to define and amend the Law Relating to Partnership.

Act 9 of 1932 Enacted 08 Apr 1932

Administered by. Ministry of Corporate Affairs · Other Acts of 1932

Commencement. 1932-10-01 (except section 69) 1933-10-01

Preamble

THE INDIAN PARTNERSHIP ACT, 1932

ACT NO. 9 OF 1932

[8 th April, 1932.] An Act to define and amend the law relating to partnership.

WHEREAS it is expedient to define and amend the law relating to partnership; it is hereby enacted as follows:--

What this Act covers

Summary of the Indian Partnership Act, 1932

Key Features

• Formation of Partnership: Defines a partnership and prescribes the essential elements for its formation through an agreement between partners.

• Rights and Duties of Partners: Regulates the mutual rights, duties, obligations, and liabilities of partners in relation to one another and to the firm.

• Agency of Partners: Recognises every partner as an agent of the firm and of the other partners for the purpose of the partnership business.

• Registration of Firms: Provides for the registration of partnership firms and specifies the legal consequences of non-registration.

• Admission, Retirement, and Dissolution: Prescribes the procedures relating to the admission, retirement, expulsion of partners, and dissolution of partnership firms.

• Settlement of Accounts: Provides for the settlement of accounts, distribution of assets, and discharge of liabilities upon dissolution.

• Third-Party Relations: Regulates the authority of partners to bind the firm and determines the firm's liability for acts done in the ordinary course of business.

Sections

Type to filter. 74 sections.

  1. 1Short title, extent and commencement
  2. 2Definitions
  3. 3Application of provisions of Act 9 of 1872
  4. 4Definition of “partnership”, “partner”, “firm” and “firm name”
  5. 5Partnership not created by status
  6. 6Mode of determining existence of partnership
  7. 7Partnership at will
  8. 8Particular partnership
  9. 9General duties of partners
  10. 10Duty to indemnify for loss caused by fraud
  11. 11Determination of rights and duties of partners by contract between the partners
  12. 12The conduct of the business
  13. 13Mutual rights and liabilities
  14. 14The property of the firm
  15. 15Application of the property of the firm
  16. 16Personal profits earned by partners
  17. 17Rights and duties of partners— after a change in the firm, after the expiry of the term of the firm, and where additional undertakings are carried out
  18. 18Partner to be agent of the firm
  19. 19Implied authority of partner as agent of the firm
  20. 20Extension and restriction of partner’s implied authority
  21. 21Partner’s authority in an emergency
  22. 22Mode of doing act to bind firm
  23. 23Effect of admissions by a partner.,
  24. 24Effect of notice to acting partner
  25. 25Liability of a partner for acts of the firm
  26. 26Liability of the firm for wrongful acts of a partner
  27. 27Liability of firm for misapplication by partners
  28. 28Holding out
  29. 29Rights of transferee of a partner ’s interest
  30. 30Minors admitted to the benefits of partnership
  31. 31Introduction of a partner
  32. 32Retirement of a partner
  33. 33Expulsion of a partner
  34. 34Insolvency of a partner
  35. 35Liability of estate of deceased partner
  36. 36Rights of outgoing partner to carry on competing business
  37. 37Right of outgoing partner in certain cases to share subsequent profits
  38. 38Revocation of continuing guarantee by change in firm
  39. 39Dissolution of a firm
  40. 40Dissolution by agreement
  41. 41Compulsory dissolution
  42. 42Dissolution on the happening of certain contingencies
  43. 43Dissolution by notice of partnership at will
  44. 44Dissolution by the Court
  45. 45Liability for acts of partners done after dissolution
  46. 46Right of partners to have business wound up after dissolution
  47. 47Continuing authority of partners for purposes of winding up
  48. 48Mode of settlement of accounts between partners
  49. 49Payment of firm debts and of separate debts
  50. 50Personal profits earned after dissolution
  51. 51Return of premium on premature dissolution
  52. 52Rights where partnership contract is rescinded for fraud or misrepresentation
  53. 53Right to restrain from use of firm name or firm property
  54. 54Agreements in restraint of trade
  55. 55Sale of goodwill after dissolution
  56. 56Power to exempt from application of this Chapter
  57. 57Appointment of Registrars
  58. 58Application for registration
  59. 59Registration
  60. 60Recording of alterations in firm name and principal place of business
  61. 61Noting of closing and opening of branches
  62. 62Noting of changes in names and addresses of partners
  63. 63Recording of changes in and dissolution of a firm
  64. 64Rectification of mistakes
  65. 65Amendment of Register by order of Court
  66. 66Inspection of Register and filed documents
  67. 67Grant of copies
  68. 68Rules of evidence
  69. 69Effect of non-registration
  70. 70Penalty for furnishing false particulars
  71. 71Power to make rules
  72. 72Mode of giving public notice
  73. 73[Repealed.]
  74. 74Savings

Schedules

This Act has 2 schedules. A schedule is published as a document of its own; the text is reproduced on its page where it has been read, and the document is mirrored here either way.

Rules made under this Act

1 set of Rules. India Code publishes Rules as a record and a document rather than as text, so these are indexed here and not reproduced. All Rules.

  • The Maharashtra Partnership Rules, 19891989

Related Acts

Source and method. Compiled from the enactments of Parliament and of the State legislatures as published on India Code, and republished together with commentary and other original matter under section 52(1)(q)(ii) of the Copyright Act, 1957. Structured, cross-referenced and maintained by eCourtsIndia. Every one of the 74 sections of this Act has its own page. This page is not a substitute for legal advice.