Rights 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
Commencement. 1932-10-01 (except section 69) 1933-10-01
Section 17 of the Indian Partnership Act, 1932 deals with rights 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. Subject to contract between the partners,-- (a) where a change occurs in the constitution of a firm, the mutual rights and duties of the partners in the reconstituted firm remain the same as they were immediately before the change, as far as may be; The Act was enacted on 08 Apr 1932.
Subject to contract between the partners,--
(a) where a change occurs in the constitution of a firm, the mutual rights and duties of the partners in the reconstituted firm remain the same as they were immediately before the change, as far as may be;
(b) where a firm constituted for a fixed term continues to carry on business after the expiry of that term, the mutual rights and duties of the partners remain the same as they were before the expiry, so far as they may be consistent with the incidents of partnership at will; and
(c) where a firm constituted to carry out one or more adventures or undertakings carries out other adventures or undertakings, the mutual rights and duties of the partners in respect of the other adventures or undertakings are the same as those in respect of the original adventures or undertakings.
Section 17, The Indian Partnership Act, 1932 (Act 9 of 1932).
Related judgements & precedents
These are some judgments that construed this section, and hold precedence value. They hold authority on how to read, interpret and use this section.
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Sharad Vasant Kotak vs Ramniklal Mohanlal Chawda
Court's Decision & Legal Precedent
When a registered partnership firm undergoes reconstitution due to the death of a partner and the induction of a replacement partner, the reconstitution does not dissolve the original registered firm and does not require fresh registration. The original registration continues to be valid. A suit for dissolution and accounts of the firm can be maintained if (1) the firm was originally registered, and (2) the person suing is shown in the Register of Firms as a partner in that registered firm. Non-compliance with the requirement to notify the Registrar of changes in firm constitution (Sections 61, 62, 63) attracts penalties under Section 69A but does not invalidate the registration or bar the maintainability of suits under Section 69(2A). For purposes of Section 69(2A), the partnership firm means the firm as found in the Certificate of Registration, and partners are those found in the Register of Firms.
On this section: Rights and duties of partners after a change in the firm - Court found that this section contemplates reconstitution (not dissolution) when changes occur in firm constitution
The holding above is the ratio decidendi as extracted from the judgment by eCourts India, reproduced unaltered — it is a rendering of the court's reasoning, not a substitute for its words. Read the order itself before relying on it.
Questions about Section 17
What have the courts held on Section 17 of the Indian Partnership Act?
Sharad Vasant Kotak vs Ramniklal Mohanlal Chawda (17 Dec 1997) is the leading judgment on this section among those set out below: Rights and duties of partners after a change in the firm - Court found that this section contemplates reconstitution (not dissolution) when changes occur in firm constitution.
How do I find court cases under Section 17 of the Indian Partnership Act?
In judgments and charge sheets this section is written several ways, and each form finds a different set of orders. These search the full text of every order eCourtsIndia holds, best matches first: Partnership Act 17, section 17 Partnership Act, section 17 of the Indian Partnership Act. People searching for it also type indian partnership act 1932 section 17. Each opens the full list of orders on eCourtsIndia, where it can be narrowed by court, year and outcome. 1 reported judgment on this section is set out on this page, beginning with Sharad Vasant Kotak vs Ramniklal Mohanlal Chawda (17 Dec 1997).
When was Section 17 of the Indian Partnership Act enacted?
Section 17 of the Indian Partnership Act, cited as Partnership Act 17, was enacted on 08 Apr 1932 as Act 9 of 1932. It is in force as at the date shown on this page.
Other sections of this Act
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. Text as in force on 15 Oct 2026. This page is not a substitute for legal advice.