Right of partners to have business wound up after dissolution
Commencement. 1932-10-01 (except section 69) 1933-10-01
Section 46 of the Indian Partnership Act, 1932 deals with right 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 property of the firm applied in payment of the debts and liabilities of the firm, and to have the surplus distributed among the partners or their repr The Act was enacted on 08 Apr 1932.
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 property of the firm applied in payment of the debts and liabilities of the firm, and to have the surplus distributed among the partners or their representatives according to their rights.
Section 46, 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.
-
Ravi Prakash Goel vs Chanra Prakash Goel
Court's Decision & Legal Precedent
Where an arbitration agreement is contained in a partnership deed and a dispute touching the affairs of the partnership firm has arisen during the lifetime of a partner, the legal representative of that deceased partner is entitled to invoke and enforce the arbitration clause, notwithstanding the death of the original partner. This right flows from Section 40 of the Arbitration and Conciliation Act, 1996, which mandates that arbitration agreements do not discharge upon death and remain enforceable by legal representatives, read harmoniously with Sections 46, 47, and 48 of the Indian Partnership Act, which preserve and enforce the rights of representatives to claim accounts and have the firm wound up. The arbitration clause survives the dissolution of the partnership and the death of a partner, and it is not necessary for the partnership deed to explicitly include heirs and legal representatives for this succession to apply, as such rights are governed by statute.
On this section: Right of partners to have business wound up after dissolution; the Court held this gives partners (or their representatives) the right to claim rendition of accounts and distribution of surplus
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 46
What have the courts held on Section 46 of the Indian Partnership Act?
Ravi Prakash Goel vs Chanra Prakash Goel (21 Mar 2007) is the leading judgment on this section among those set out below: Right of partners to have business wound up after dissolution; the Court held this gives partners (or their representatives) the right to claim rendition of accounts and distribution of surplus.
How do I find court cases under Section 46 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 46, section 46 Partnership Act, section 46 of the Indian Partnership Act. People searching for it also type section 46 indian partnership act 1932. 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 Ravi Prakash Goel vs Chanra Prakash Goel (21 Mar 2007).
When was Section 46 of the Indian Partnership Act enacted?
Section 46 of the Indian Partnership Act, cited as Partnership Act 46, 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.