Definition of “partnership”, “partner”, “firm” and “firm name”
Commencement. 1932-10-01 (except section 69) 1933-10-01
Section 4 of the Indian Partnership Act, 1932 deals with definition 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. The Act was enacted on 08 Apr 1932.
"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 have entered into partnership with one another are called individually "partners" and collectively "a firm", and the name under which their business is carried on is called the "firm name".
Section 4, 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: Definition of 'partnership', 'partner', and 'firm' - Court examined whether the definition in this section requires all current partners' names to be in the Register of Firms for a suit to be maintainable
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Indian Oil Corporation Ltd. v. Shriji Enterprises
Court's Decision & Legal Precedent
Final Order order-11.pdf 2014-01-29 DATE VERIFIED. CRA 165/2013. Bombay HC Aurangabad, A.I.S. Cheema J. (reserved 24 Jan 2014, pronounced 29 Jan 2014). Isolate: Partnership Act s.4 three essential ingredients (agreement; share profits of a business; agency) plus s.6 real-relation test — nomenclature as ‘partners’ does not decide; Expl. I to s.6: sharing profits or gross returns from jointly held property does not of itself make the holders partners. s.69 already filled — do not pad 69. Leading HC.
On this section: Partnership Act 4: partnership requires an agreement to share profits of a business carried on by all or any acting for all; calling co-owners ‘partners’ is not enough (IOC / Shriji). Do not pad 69.
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.
Judgments citing this section
These may be obiter dicta or a precedent, for you to study. These are the judgments where this section is quoted.
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… The argument is that applying that definition to the word "persons" occurring in Section 4, one can at once say that an unincorporated association or body of persons, like a firm, can enter into a partnership just as by the application of that definition to Section 4 of the Indian Partnership Act a company can become a partner in a firm. The definitions given in Section 3 of the General Clauses Act, 1897, however, apply when there is nothing repugnant in the subject or context. It is difficult to say that there is anything repugnant in the context of Section 4 itself which will …
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… The argument is that applying that definition to the word "persons" occurring in Section 4, one can at once say that an unincorporated association or body of persons, like a firm, can enter into a partnership just as by the application of that definition to Section 4 of the Indian Partnership Act a company can become a partner in a firm. The definitions given in Section 3 of the General Clauses Act, 1897, however, apply when there is nothing repugnant in the subject or context. It is difficult to say that there is anything repugnant in the context of Section 4 itself which will …
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… The argument is that applying that definition to the word "persons" occurring in Section 4, one can at once say that an unincorporated association or body of persons, like a firm, can enter into a partnership just as by the application of that definition to Section 4 of the Indian Partnership Act a company can become a partner in a firm. The definitions given in Section 3 of the General Clauses Act, 1897, however, apply when there is nothing repugnant in the subject or context. It is difficult to say that there is anything repugnant in the context of Section 4 itself which will …
Questions about Section 4
What have the courts held on Section 4 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: Definition of 'partnership', 'partner', and 'firm' - Court examined whether the definition in this section requires all current partners' names to be in the Register of Firms for a suit to be maintainable. Another 1 judgment on this section is set out below, 1 of them from the Supreme Court. They run from 1997 to 2014.
How do I find court cases under Section 4 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 4, section 4 Partnership Act, section 4 of the Indian Partnership Act. People searching for it also type indian partnership act 1932 section 4. Each opens the full list of orders on eCourtsIndia, where it can be narrowed by court, year and outcome. 2 reported judgments on this section are set out on this page, beginning with Sharad Vasant Kotak vs Ramniklal Mohanlal Chawda (17 Dec 1997).
When was Section 4 of the Indian Partnership Act enacted?
Section 4 of the Indian Partnership Act, cited as Partnership Act 4, 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 14 Oct 2026. This page is not a substitute for legal advice.