Implied authority of partner as agent of the firm
Commencement. 1932-10-01 (except section 69) 1933-10-01
Section 19 of the Indian Partnership Act, 1932 deals with implied 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, binds the firm. The Act was enacted on 08 Apr 1932.
(1) 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, binds the firm.
The authority of a partner to bind the firm conferred by this section is called his implied authority--.
(2) In the absence of any usage or custom of trade to the contrary, the implied authority of a partner does not empower him to--
(a) submit a dispute relating to the business of the firm to arbitration,
(b) open a banking account on behalf of the firm in his own name,
(c) compromise or relinquish any claim or portion of a claim by the firm,
(d) withdraw a suit or proceeding filed on behalf of the firm,
(e) admit any liability in a suit or proceeding against the firm,
(f) acquire immovable property on behalf of the firm,
(h) transfer immovable property belonging to the firm, or
(g) enter into partnership on behalf of the firm.
Section 19, The Indian Partnership Act, 1932 (Act 9 of 1932).
Cross-references
Extracted from the operative text of the enactments themselves. Every destination below exists in our corpus.
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Questions about Section 19
What does Section 19 of the Indian Partnership Act deal with?
Section 19 of the Indian Partnership Act is headed "Implied 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, binds the firm.
How do I find court cases under Section 19 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 19, section 19 Partnership Act, section 19 of the Indian Partnership Act. Each opens the full list of orders on eCourtsIndia, where it can be narrowed by court, year and outcome.
What should I read with Section 19 of the Indian Partnership Act, and has it changed?
Its own text turns on section 22 (Mode of doing act to bind firm), so none of them can safely be read on its own.
When was Section 19 of the Indian Partnership Act enacted?
Section 19 of the Indian Partnership Act, cited as Partnership Act 19, 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.