Official source document text
Text extracted from the official document. It may include schedules, forms and source footnotes. PDF layout and table alignment can differ.
Open document text
1
THE INDIAN PARTNERSHIP ACT, 1932
(ACT NO. 9 OF 1932)
[As on the 7th July, 2025]
2
List of Amending Acts
1. The Repealing and Amending Act, 1934 (24 of 1934).
2. The Part B States (Laws) Act, 1951 (3 of 1951).
___________
LIST OF ABBREVIATIONS USED
Cl.,cls. . . . . . for Clause, clauses.
Ins. . . . . . ,, Inserted.
Notifn. . . . . . ,, Notification.
S., ss. . . . . . ,, Section, sections
Sch. . . . . . ,, Schedule.
Subs. . . . . . ,, Substituted
w.e.f. . . . . . ,, with effect from
3
THE INDIAN PARTNERSHIP ACT, 1932
________
ARRANGEMENT OF SECTIONS
________
CHAPTER I
PRELIMINARY
SECTIONS
1. Short title, extent and commencement.
2. Definitions.
3. Application of provisions of Act 9 of 1872.
CHAPTER II
THE NATURE OF PARTNERSHIP
4. Definition of “partnership”, “partner”, “firm” and “firm name”.
5. Partnership not created by status.
6. Mode of determining existence of partnership.
7. Partnership at will.
8. Particular partnership.
CHAPTER III
RELATIONSOF PARTNERS TO ONE ANOTHER
9. General duties of partners.
10. Duty to indemnify for loss caused by fraud.
11. Determination of rights and duties of partners by contract between the partners.
Agreements in restraint of trade.
12. The conduct of the business.
13. Mutual rights and liabilities.
14. The property of the firm.
15. Application of the property of the firm.
16. Personal profits earned by partners.
17. 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.
CHAPTER IV
RELATIONS OF PARTNERS TO THIRD PARTIES
18. Partner to be agent of the firm.
19. Implied authority of partner as agent of the firm.
20. Extension and restriction of partner’s implied authority.
4
SECTIONS
21. Partner’s authority in an emergency.
22. Mode of doing act to bind firm.
23. Effect of admissions by a partner.,
24. Effect of notice to acting partner.
25. Liability of a partner for acts of the firm.
26. Liability of the firm for wrongful acts of a partner.
27. Liability of firm for misapplication by partners.
28. Holding out.
29. Rights of transferee of a partner ’s interest.
30. Minors admitted to the benefits of partnership.
CHAPTER V
INCOMING AND OUTGOING PARTNERS
31. Introduction of a partner.
32. Retirement of a partner.
33. Expulsion of a partner.
34. Insolvency of a partner.
35. Liability of estate of deceased partner.
36. Rights of outgoing partner to carry on competing business.
Agreements in restraint of trade.
37. Right of outgoing partner in certain cases to share subsequent profits.
38. Revocation of continuing guarantee by change in firm.
CHAPTER VI
DISSOLUTION OF A FIRM
39. Dissolution of a firm.
40. Dissolution by agreement.
41. Compulsory dissolution.
42. Dissolution on the happening of certain contingencies.
43. Dissolution by notice of partnership at will.
44. Dissolution by the Court.
45. Liability for acts of partners done after dissolution.
46. Right of partners to have business wound up after dissolution.
47. Continuing authority of partners for purposes of winding up.
48. Mode of settlement of accounts between partners.
49. Payment of firm debts and of separate debts.
50. Personal profits earned after dissolution.
51. Return of premium on premature dissolution.
5
SECTIONS
52. Rights where partnership contract is rescinded for fraud or misrepresentation.
53. Right to restrain from use of firm name or firm property.
54. Agreements in restraint of trade.
55. Sale of goodwill after dissolution.
Rights of buyer and seller of goodwill.
Agreements in restraint of trade.
CHAPTER VII
REGISTRATION OF FIRMS
56. Power to exempt from application of this Chapter.
57. Appointment of Registrars.
58. Application for registration.
59. Registration.
60. Recording of alterations in firm name and principal place of business.
61. Noting of closing and opening of branches.
62. Noting of changes in names and addresses of partners.
63. Recording of changes in and dissolution of a firm.
Recording of withdrawal of a minor.
64. Rectification of mistakes.
65. Amendment of Register by order of Court.
66. Inspection of Register and filed documents.
67. Grant of copies.
68. Rules of evidence.
69. Effect of non-registration.
70. Penalty for furnishing false particulars.
71. Power to make rules.
CHAPTER VIII
SUPPLEMENTAL
72. Mode of giving public notice.
73. [Repealed.].
74. Savings.
SCHEDULE I.—MAXIMUM FEES
SCHEDULE II.—[Repealed.].
6
THE INDIAN PARTNERSHIP ACT, 1932
ACT NO. 9 OF 1932
[8th 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 ishereby enacted as
follows:—
CHAPTER I
PRELIMINARY
1. Short title, extent and commencement.—(1) This Act may be called the Indian Partnership Act,
1932.
1[(2) It extends to the whole of India 2[3***].]
(3) It shall come into force on the 1st day of October, 1932, except section 69, which shall come into
force on the 1st day of October, 1933.
2. Definitions.—In this Act, unless there is anything repugnant in the subject or context,—
(a) an“act of a firm” means any act or omission by all the partners, or by any partner or agent of
the firm which gives rise to a right enforceable by or against the firm;
(b) “business” includes every trade, occupation and profession;
(c) “prescribed” means prescribed by rules made under this Act;
(d) “third party”, used in relation to a firm or to a partner therein, means any person who is not a
partner in the firm; and
(e) expressions used but not defined in this Act and defined in the Indian Contract Act, 1872 (9 of
1872), shall have the meanings assigned to them in that Act.
STATE AMENDMENT
Maharashtra
Amendment of section 2 of Act IX of 1932.—In section 2 of the Indian Partnership Act, 1932
(IX of 1932), in its application to the State of Maharashtra (hereinafter referred to as “the principal Act”),
after clause (c), the following clause shall be inserted, namely :—
“(c-1) “Registrar” means the Registrar of Firms appointed under sub-section (1) of section 57 and
includes the Deputy Registrar of Firms and Assistant Registrar of Firms appointed under sub-section (2)
of that section;”
[Vide Maharashtra Act 29 of 1984, s. 2]
3. Application of provisions of Act 9 of 1872.—Theunrepealed provisions of the Indian Contract
Act, 1872 (9 of 1872), save in so far as they are inconsistent with the express provisions of this Act, shall
continue to apply to firms.
STATE AMENDMENT
Goa, Daman and Diu
In exercise of the powers conferred by sub-section (2) of Section 3 of the Goa, Daman and Diu
(Laws) No. 2 Regulation, 1963, the Lieutenant Governor hereby appoints the 15th March 1964, as the
1. Subs. by the A. O. 1950, for sub-section (2).
2. Subs. by Act 3 of 1951, s. 3 and the Schedule, for “except Part B States”.
3.The words “except the State of Jammu and Kashmir” omitted by Act 34 of 2019, s. 95 and the Fifth Schedule
(w.e.f. 31-10- 2019).
7
date on which the provisions of the Acts mentioned in the Schedule below shall come into force in
the Union Territory of Goa, Daman and Diu.
SCHEDULE
1. The Indian Partnership Act, 1932.
By order and in the name of the Lieutenant Governor of Goa, Daman and Diu.
[Published in the Official Gazette Series I No. 11 dated 12-3-1964] (w.e.f. 22nd January 1964)
CHAPTER II
THE NATURE OF PARTNERSHIP
4. 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.
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”.
5. Partnership not created by status.—The relation of partnership arises from contract and not from
status;
and, in particular, the members of a Hindu undivided family carrying on a family business as such, or
a Burmese Buddhist husband and wife carrying on business as such are not partners in such business
6. Mode of determining existence of partnership.—In determining whether a group of personsisor
is not a firm, or whether a person is or is not a partner in a firm, regard shall be had to the real relation
between the parties, as shown by all relevant facts taken together.
Explanation 1.—The sharing of profits or of gross returns arising from property by persons holding a
joint or common interest in that property does not of itself make such persons partners.
Explanation 2.—The receipt by a person of a share of the profits of a business, or of a payment
contingent upon the earning of profits or varying with the profits earned by a business, does not of itself
make him a partner with the persons carrying on the business;
and, in particular, the receipt of such share or payment—
(a) by a lender of money to persons engaged or about to engage in any business,
(b) by a servant or agent as remuneration,
(c) by the widow or child of a deceased partner, as annuity, or
(d) by a previous owner or part owner of the business, as consideration for the sale of the
goodwill or share thereof,
does not of itself make the receiver a partner with the persons carrying on the business.
7. Partnership at will.—Where no provision is made by contract between the partners for the
duration of their partnership or for the determination of their partnership, the partnership is “partnership at
will”.
8. Particular partnership.—A person may become a partner with another person in particular
adventures or undertakings.
CHAPTER III
RELATIONS OF PARTNERS TO ONE ANOTHER
9. General duties of partners.—Partners are bound to carry on the business of the firm to the
greatest common advantage, to be just and faithful to each other, and to render true accounts and full
information of all things affecting the firm to any partner or his legal representative.
8
STATE AMENDMENT
Amendment of section 9 of Act IX of 1932.—In section 9 of the principal Act for the words “or his legal
representative” the words “, his heir or legal representative” shall be substituted.
[Vide Maharashtra Act 29 of 1984, s. 3]
10. Duty to indemnify for loss caused by fraud.—Everypartner shall indemnify the firm for any
loss caused to it by his fraud in the conduct of the business of the firm.
11. Determination of rights and duties of partners by contract between the partners.
Agreements in restraint of trade.—(1) Subject to the provisions of this Act, the mutual rights and duties
of the partners of a firm may be determined by contract between the partners, and such contract may be
expressed or may be implied by a course of dealing.
Such contract may be varied by consent of all the partners, and such consent may be expressed or
may be implied by a course of dealing.
(2) Notwithstanding anything contained in section 27 of the Indian Contract Act, 1872 (9 of 1872),
such contracts may provide that a partner shall not carry on any business other than that of the firm while
he is a partner.
12. The conduct of the business.—Subject to contract between the partners—
(a) every partner has a right to take part in the conduct of the business;
(b) every partner is bound to attend diligently to his duties in the conduct of the business;
(c) any difference arising as to ordinary matters connected with the business may be decided by a
majority of the partners, and every partner shall have the right to express his opinion before the matter
is decided, but no change may be made in the nature of the business without the consent of all the
partners; and
(d) every partner has a right to have access to and to inspect and copy any of the books
of the firm.
STATE AMENDMENT
Amendment of section 12 of Act IX of 1932 .—In section 12 of the principal Act,—
(a) in clause (c), the word “and” appearing at the end shall be deleted ;
(b) in clause (d), for the words “books of the firm.” The words “books of the firm; and”
shall be substituted ;
(c) after clause (d), the following clause shall be added, namely : —
“(e) in the event of the death of a partner, his heirs or legal representatives or their duly
authorised agents shall have a right of access to and to inspect and copy any of the books of
the firm.”.
13. Mutual rights, and liabilities.—Subject to contract between the partners—
(a) a partner is not entitled to receive remuneration for taking part in the conduct of the business;
(b) the partners are entitled to share equally in the profits earned, and shall contribute equally to
the losses sustained by the firm;
(c) where a partner is entitled to interest on the capital subscribed by him such interest shall be
payable only out of profits;
(d) a partner making, for the purposes of the business, any payment or advance beyond the
amount of capital he has agreed to subscribe, is entitled to interest thereon at the rate of six per cent.
per annum;
(e) the firm shall indemnify a partner in respect of payments made and liabilities incurred by
him—
9
(i) in the ordinary and proper conduct of the business, and
(ii) in doing such act, in an emergency, for the purpose of protecting the firm from loss, as
would be done by a person of ordinary prudence, in his own case, under similar circumstances;
and
(f) a partner shall indemnify the firm for any loss caused to it by his wilful neglect in the conduct
of the business of the firm.
14. The property of the firm.—Subject to contract between the partners, the property of the firm
includes all property and rights and interests in property originally brought into the stock of the firm, or
acquired, by purchase or otherwise, by or for the firm, or for the purposes and in the course of the
business of the firm, and includes also the goodwill of the business.
Unless the contrary intention appears, property and rights and interests in property acquired with
money belonging to the firm are deemed to have been acquired for the firm.
15. Application of the property of the firm.—Subject to contract between the partners, the property
of the firm shall be held and used by the partners exclusively for the purposes of the business.
16. Personal profits earned by partners.—Subject to contract between the partners,—
(a) if a partner derives any profits for himself from any transaction of the firm, or from the use of
the property or business connection of the firm or the firm name, he shall account for that profit and
pay it to the firm;
(b) if a partner carries on any business of the same nature as and competing with that of the firm,
he shall account for and pay to the firm all profits made by him in that business.
17. 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;
(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.
CHAPTER IV
RELATIONS OF PARTNERS TO THIRD PARTIES
18. Partner to be agent of the firm.— Subject to the provisions of this Act, a partner is the agent of
the firm for the purposes of the business of the firm.
19. Implied authority of partner as agent of the firm.—(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,
10
(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.
20. Extension and restriction of partner's implied authority.—The partners in a firm may, by
contract between the partners, extend or restrict the implied authority of any partner.
Notwithstanding any such restriction, any act done by a partner on behalf of the firm which falls
within his implied authority binds the firm, unless the person with whom he is dealing knows of the
restriction or does not know or believe that partner to be a partner.
21. Partner’s authority in an emergency.—A Partner has authority, in an emergency, to do all such
acts for the purpose of protecting the firm from loss as would be done by a person of ordinary prudence,
in his own case, acting under similar circumstances, and such acts bind the firm.
22. Mode of doing act to bind firm.—In order to bind a firm, an act or instrument done or executed
by a partner or other person on behalf of the firm shall be done or executed in the firm name, or in any
other manner expressing or implying an intention to bind the firm.
23. Effect of admissions by a partner.—An admission or representation made by a partner
concerning the affairs of the firm is evidence against the firm, if it is made in the ordinary course of
business.
24. Effect of notice to acting partner.—Notice to a partner who habitually acts in the business of the
firm of any matter relating to the affairs of the firm operates as notice to the firm, except in the case of a
fraud on the firm committed by or with the consent of that partner.
25. Liability of a partner for acts of the firm.—Every partner is liable, jointly with all the other
partners and also severally, for all acts of the firm done while he is a partner.
26. Liability of the firm for wrongful acts of a partner.—Where, by the wrongful act or omission
of a partner acting in the ordinary course of the business of a firm, or with the authority of his partners,
loss or injury is caused to any third party, or any penalty is incurred, the firm is liable therefor to the same
extent as the partner.
27. Liability of firm for misapplication by partners.—Where—
(a) a partner acting within his apparent authority receives money or property from a third party
and misapplies it, or
(b) a firm in the course of its business receives money or property from a third party, and the
money or property is misapplied by any of the partners while it is in the custody of the firm,
the firm is liable to make good the loss.
28. Holding out.—(1) Anyone who by words spoken or written or by conduct represents himself, or
knowingly permits himself to be represented, to be a partner in a firm, is liable as a partner in that firm to
anyone who has on the faith of any such representation given credit to the firm, whether the person
representing himself or represented to be a partner does or does not know that the representation has
reached the person so giving credit.
(2) Where after a partner’s death the business is continued in the old firm name, the continued use of
that name or of the deceased partner’s name as a part thereof shall not itself make his legal representative
or his estate liable for any act of the firm done after his death.
29. Rights of transferee of a partner’s interest.—(1) A transfer by a partner of his interest in the
firm, either absolute or by mortgage, or by the creation by him of a charge on such interest, does not
entitle the transferee, during the continuance of the firm, to interfere in the conduct of the business, or to
require accounts, or to inspect the books of the firm, but entitles the transferee only to receive the share of
profits of the transferring partner, and the transferee shall accept the account of profits agreed to by the
partners.
11
(2) If the firm is dissolved or if the transferring partner ceases to be a partner, the transferee is entitled
as against the remaining partners to receive the share of the assets of the firm to which the transferring
partner is entitled, and, for the purpose of ascertaining that share, to an account as from the date of the
dissolution.
30. Minors admitted to the benefits of partnership.—(1) A person who is a minor according to the
law to which he is subject may not be a partner in a firm, but, with the consent of all the partners for the
time being, he may be admitted to the benefits of partnership.
(2) Such minor has a right to such share of the property and of the profits of the firm as may be
agreed upon, and he may have access to and inspect and copy any of the accounts of the firm.
(3) Such minor’s share is liable for the acts of the firm, but the minor is not personally liable for any
such act.
(4) Such minor may not sue the partners for an account or payment of his share of the property or
profits of the firm, save when severing his connection with the firm, and in such case the amount of his
share shall be determined by a valuation made as far as possible in accordance with the rules contained in
section 48:
Provided that all the partners acting together or any partner entitled to dissolve the firm upon notice to
other partners may elect in such suit to dissolve the firm, and thereupon the Court shall proceed with the
suit as one for dissolution and for settling accounts between the partners, and the amount of the share of
the minor shall be determined along with the shares of the partners.
(5) At any time within six months of his attaining majority, or of his obtaining knowledge that he had
been admitted to the benefits of partnership, whichever date is later, such person may give public notice
that he has elected to become or that he has elected not to become a partner in the firm, and such notice
shall determine his position as regards the firm:
Provided that, if he fails to give such notice, he shall become a partner in the firm on the expiry of the
said six months.
(6) Where any person has been admitted as a minor to the benefits of partnership in a firm, the burden
of proving the fact that such person had no knowledge of such admission until a particular date after the
expiry of six months of his attaining majority shall lie on the persons asserting that fact.
(7) Where such person becomes a partner,—
(a) his rights and liabilities as a minor continue up to the date on which he becomes a partner, but
he also becomes personally liable to third parties for all acts of the firm done since he was admitted to
the benefits of partnership, and
(b) his share in the property and profits of the firm shall be the share to which he was entitled as a
minor.
(8)Where such person elects not to become a partner,—
(a) his rights and liabilities shall continue to be those of a minor under this section up to the date
on which he gives public notice,
(b) his share shall not be liable for any acts of the firm done after the date of the notice,
and
(c) he shall be entitled to sue the partners for his share of the property and profits in accordance
with sub-section (4).
(9) Nothing in sub-sections (7) and (8) shall affect the provisions of section 28.
12
CHAPTER V
INCOMING AND OUTGOING PARTNERS
31. Introduction of a partner.—(1) Subject to contract between the partners and to the provisions of
section 30, no person shall be introduced as a partner into a firm without the consent of all the existing
partners.
(2) Subject to the provisions of section 30, a person who is introduced as a partner into a firm does
not thereby become liable for any act of the firm done before he became a partner.
32. Retirement of a partner.—(1) A partner may retire—
(a) with the consent of all the other partners,
(b) in accordance with an express agreement by the partners, or
(c) where the partnership is at will, by giving notice in writing to all the other partners of his
intention to retire.
(2) A retiring partner may be discharged from any liability to any third party for acts of the firm done
before his retirement by an agreement made by him with such third party and the partners of the
reconstituted firm, and such agreement may be implied by a course of dealing between such third party
and the reconstituted firm after he had knowledge of the retirement.
(3) Notwithstanding the retirement of a partner from a firm, he and the partners continue to
be liable as partners to third parties for any act done by any of them which would have been an
act of the firm if done before the retirement, until public notice is given of the retirement:
Provided that a retired partner is not liable to any third party who deals with the firm without knowing
that he was a partner.
(4) Notices under sub-section (3) may be given by the retired partner or by any partner of the
reconstituted firm.
33. Expulsion of a partner.—(1) Apartner may not be expelled from a firm by any majority of the
partners, save in the exercise in good faith of powers conferred by contract between the partners.
(2) The provisions of sub-sections (2), (3) and (4) of section 32 shall apply to an expelled partner as if
he were a retired partner.
34. Insolvency of a partner.—(1) Where a partner in a firm is adjudicated an insolvent he ceases
to be a partner on the date on which the order of adjudication is made, whether or not the firm is
thereby dissolved.
(2) Where under a contract between the partners the firm is not dissolved by the adjudication o fa
partner as an insolvent, the estate of a partner so adjudicated is not liable for any act of the firm and the
firm is not liable for any act of the insolvent, done after the date on which the order of adjudication is
made.
35. Liability of estate of deceased partner. — Where under a contract between the partners the firm
is not dissolved by the death of a partner, the estate of a deceased partner is not liable for any act of the
firm done after his death.
36. Rights of outgoing partner to carry on competing business. Agreements in restraint of
trade.—(1) An outgoing partner may carry on a business competing with that of the firm and he may
advertise such business, but, subject to contract to the contrary, he may not—
(a) use the firm name,
(b) represent himself as carrying on the business of the firm, or
(c) solicit the custom of persons who were dealing with the firm before he ceased to be a partner.
(2) A partner may make an agreement with his partners that on ceasing to be a partner he will not
carry on any business similar to that of the firm within a specified period or within specified local limits;
13
and, notwithstanding anything contained in section 27 of the Indian Contract Act, 1872 (9 of 1872), such
agreement shall be valid if the restrictions imposed are reasonable.
37. Right of outgoing partner in certain cases to share subsequent profits.—Where any member
of a firm has died or otherwise ceased to be a partner, and the surviving or continuing partners carry on
the business of the firm with the property of the firm without any final settlement of accounts as between
them and the outgoing partner or his estate, then, in the absence of a contract to the contrary, the outgoing
partner or his estate is entitled at the option of himself or his representatives to such share of the profits
made since he ceased to be a partner as may be attributable to the use of his share of the property of the
firm or to interest at the rate of six per cent. per annum on the amount of his share in the property of the
firm:
Provided that whereby contract between the partners an option is given to surviving or continuing
partners to purchase the interest of a deceased or outgoing partner, and that option is duly exercised, the
estate of the deceased partner, or the outgoing partner or his estate, as the case may be, is not entitled to
any further or other share of profits; but if any partner assuming to act in exercise of the option does not
in all material respects comply with the terms thereof, he is liable to account under the foregoing
provisions of this section.
38. Revocation of continuing guarantee by change in firm.—A continuing guarantee given
to a firm, or to a third party in respect of the transactions of a firm, is, in the absence of agreement to the
contrary, revoked as to future transactions from the date of any change in the constitution of the firm.
CHAPTER VI
DISSOLUTION OF A FIRM
39. Dissolution of a firm.—The dissolution of partnership between all the partners of a firm is called
the “dissolution of the firm”.
40. Dissolution by agreement.—A firm may be dissolved with the consent of all the partners or in
accordance with a contract between the partners.
41. Compulsory dissolution.—A firm is dissolved—
(a) by the adjudication of all the partners or of all the partners but one as insolvent, or
(b) by the happening of any event which makes it unlawful for the business of the firm to be
carried on or for the partners to carry it on in partnership :
Provided that, where more than one separate adventure or undertaking is carried on by the firm, the
illegality of one or more shall not of itself cause the dissolution of the firm in respect of its lawful
adventures and undertakings.
42. Dissolution on the happening of certain contingencies.—Subject to contract between the
partners a firm is dissolved—
(a) if constituted for a fixed term, by the expiry of that term;
(b) if constituted to carry out one or more adventures or undertakings, by the completion thereof;
(c) by the death of a partner; and
(d) by the adjudication of a partner as an insolvent.
43. Dissolution by notice of partnership at will.—(1) Where the partnership is at will, the firm may
be dissolved by any partner giving notice in writing to all the other partners of his intention to dissolve the
firm.
(2) The firm is dissolved as from the date mentioned in the notice as the date of dissolution or, if no
date is so mentioned, as from the date of the communication of the notice.
44. Dissolution by the Court.—At the suit of a partner, the Court may dissolve a firm on any of the
following grounds, namely:—
http://may.be/
14
(a) that a partner has become of unsound mind, in which case the suit may be brought as well by
the next friend of the partner who has become of unsound mind as by any other partner;
(b) that a partner, other than the partner suing, has become in any way permanently incapable of
performing his duties as partner;
(c) that a partner, other than the partner suing, is guilty of conduct which is likely to affect
prejudicially the carrying on of the business, regard being had to the nature of the business;
(d) that a partner, other than the partner suing, wilfully or persistently commits breach of
agreements relating to the management of the affairs of the firm or the conduct of its business, or
otherwise so conducts himself in matters relating to the business that it is not reasonably practicable
for the other partners to carry on the business in partnership with hint;
(e) that a partner, other than the partner suing, has in any way transferred the whole of his interest
in the firm to a third party, or has allowed his share to be charged under the provisions of rule 49 of
Order XXI of the First Schedule to the Code of Civil Procedure, 1908 (5 of 1908), or has allowed it to
be sold in the recovery of arrears of land-revenue or of any dues recoverable as arrears of land-
revenue due by the partner;
(f) that the business of the firm cannot be carried on save at a loss; or
(g) on any ground which renders it just and equitable that the firm should be dissolved.
45. Liability for acts of partners done after dissolution.—(1) Notwithstanding the dissolution of a
firm, the partners continue to be liable as such to third parties for any act done by any of them which
would have been an act of the firm if done before the dissolution, until public notice is given of the
dissolution:
Provided that the estate of a partner who dies, or who is adjudicated an insolvent, or of a partner who,
not having been known to the person dealing with the firm to be a partner, retires from the firm, is not
liable under this section for acts done after the date on which he ceases to be a partner.
(2) Notices under sub-section (1) may be given by any partner.
46. 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 representatives according to their
rights.
47. Continuing authority of partners for purposes of winding up.—After the dissolution of a firm
the authority of each partner to bind the firm, and the other mutual rights and obligations of the partners,
continue notwithstanding the dissolution, so far as may be necessary to wind up the affairs of the firm and
to complete transactions begun but unfinished at the time of the dissolution, but not otherwise:
Provided that the firm is in no case bound by the acts of a partner who has been adjudicated insolvent;
but this proviso does not affect the liability of any person who has after the adjudication represented
himself or knowingly permitted himself to be represented as a partner of the insolvent.
48. Mode of settlement of accounts between partners. —In settling the accounts of a firm after
dissolution, the following rules shall, subject to agreement by the partners, be observed: —
(a) Losses, including deficiencies of capital, shall be paid first out of profits, next out of capital,
and, lastly, if necessary, by the partners individually in the proportions in which they were entitled to
share profits.
(b) The assets of the firm, including any sums contributed by the partners to make up deficiencies
of capital, shall be applied in the following manner and order:—
(i) in paying the debts of the firm to third parties;
(ii) in paying to each partner rateably what is due to him from the firm for advances as
distinguished from capital;
15
(iii) in paying to each partner rateably what is due to him on account of capital; and
(iv) the residue, if any, shall be divided among the partners in the proportions in which they
were entitled to share profits.
49. Payment of firm debts and of separate debts.—Where there are joint debts due from the firm,
and also separate debts due from any partner, the property of the firm shall be applied in the first instance
in payment of the debts of the firm, and, if there is any surplus, then the share of each partner shall be
applied in payment of his separate debts or paid to him. The separate property of any partner shall be
applied first, in the payment of his separate debts, and the surplus (if any) in the payment of the debts of
the firm.
50. Personal profits earned after dissolution.—Subject to contract between the partners, the
provisions of clause (a) of section 16 shall apply to transactions by any surviving partner or by the
representatives of a deceased partner, undertaken after the firm is dissolved on account of the death of a
partner and before its affairs have been completely wound up:
Provided that where any partner or his representative has bought the goodwill of the firm, nothing in
this section shall affect his right to use the firm name.
51. Return of premium on premature dissolution. —Where a partner has paid a premium on
entering into partnership for a fixed term, and the firm is dissolved before the expiration of that term
otherwise than by the death of a partner, he shall be entitled to repayment of the premium or of such part
thereof as may be reasonable, regard being had to the terms upon which he became a partner and to the
length of time during which he was a partner, unless—
(a) the dissolution is mainly due to his own misconduct, or
(b) the dissolution is in pursuance of an agreement containing no provision for the return of the
premium or any part of it.
52. Rights where partnership contract is rescinded for fraud or misrepresentation.—Where a
contract creating partnership is rescinded on the ground of the fraud or misrepresentation of any of the
parties thereto, the party entitled to rescind is, without prejudice to any other right, entitled—
(a) to a lien on, or a right of retention of, the surplus or the assets of the firm remaining after the
debts of the firm have been paid, for any sum paid by him for the purchase of a share in the firm and
for any capital contributed by him;
(b) to rank as a creditor of the firm in respect of any payment made by him towards the debts of
the firm; and
(c) to be indemnified by the partner or partners guilty of the fraud or misrepresentation against all
the debts of the firm.
53. Right to restrain from use of firm name or firm property.—After a firm is dissolved, every
partner or his representative may, in the absence of a contract between the partners to the contrary,
restrain any other partner or his representative from carrying on a similar business in the firm name or
from using any of the property of the firm for his own benefit, until the affairs of the firm have been
completely wound up:
Provided that where any partner or his representative has bought the goodwill of the firm, nothing in
this section shall affect his right to use the firm name.
54. Agreements in restraint of trade.—Partners may, upon or in anticipation of the dissolution of
the firm, make an agreement that some or all of them will not carry on a business similar to that of the
firm within a specified period or within specified local limits; and notwithstanding anything contained in
section 27 of the Indian Contract Act, 1872 (9 of 1872), such agreement shall be valid if the restrictions
imposed are reasonable.
16
55. Sale of goodwill after dissolution. Rights of buyer and seller of goodwill. Agreements in
restraint of trade.—(1) In settling the accounts of a firm after dissolution, the goodwill shall, subject to
contract between the partners, be included in the assets, and it may be sold either separately or along with
other property of the firm.
(2) Where the goodwill of a firm is sold after dissolution, a partner may carry on a business
competing with that of the buyer and he may advertise such business, but, subject to agreement between
him and the buyer, he may not—
(a) use the firm name,
(c) represent himself as carrying on the business of the firm, or
(c) solicit the custom of persons who were dealing with the firm before its dissolution.
(3) Any partner may, upon the sale of the goodwill of a firm, make an agreement with the buyer that
such partner will not carry on any business similar to that of the firm within a specified period or within
specified local limits, and, notwithstanding anything contained in section 27 of the Indian Contract Act,
1872 (9 of 1872), such agreement shall be valid if the restrictions imposed are reasonable.
CHAPTER VII
REGISTRATION OF FIRMS
56. Power to exempt from application of this Chapter.—The1[State Government of any State]
may, by notification in the Official Gazette, direct that the provisions of this Chapter shall not apply to
2[that State] or to any part thereof specified in the notification.
57. Appointment of Registrars.—(1) The State Government may appoint Registrars of Firms for the
purposes of this Act, and may define the areas within which they shall exercise their powers and perform
their duties.
(2) Every Registrar shall be deemed to be a public servant within the meaning of section 21 of the
Indian Penal Code (45 of 1860).
STATE AMENDMENT
Goa, Daman and Diu
In exercise of power conferred under sub-section (1) of Section 57 of the Indian Partnership
Act, 1932 (IX of 1932) (hereinafter referred to as the Act), the Government of Goa, in supersession
of all earlier Notifications which may have been issued in the context and which may render to be
contradictory to present Notification hereby appoints the Officers shown in Column No. II of the
table below as Registrar of Firms who shall exercise, perform and discharge the powers, functions
and duties of the Registrar under the Act within the jurisdiction mentioned in Column No. III of the
table below:–
Sr.
No.
Designation of Officer Jurisdiction
I II III
1. Civil Registrar-cum-Sub-Registrar, Pernem Pernem Taluka
2. Jt. Civil Registrar-cum-Sub-Registrar-I, Bardez Bardez Taluka
3. Civil Registrar-cum-Sub-Registrar, Bicholim Bicholim Taluka
4. Civil Registrar-cum-Sub-Registrar, Sattari Sattari Taluka
5. Jt. Civil Registrar-cum-Sub-Registrar-I, Tiswadi Tiswadi Taluka
6. Jt. Civil Registrar-cum-Sub-Registrar-I, Ponda Ponda Taluka
7. Civil Registrar-cum-Sub-Registrar, Dharbandora Dharbandora Taluka
8. Jt. Civil Registrar-cum-Sub-Registrar-I, Mormugao Mormugao Taluka
1. Subs. by the A.O. 1937, for “G. G. in C.”.
2. Subs. ibid., for “any province”.
17
9. Jt. Civil Registrar-cum-Sub-Registrar-I, Salcete Salcete Taluka
10. Civil Registrar-cum-Sub-Registrar, Quepem Quepem Taluka
11. Civil Registrar-cum-Sub-Registrar, Sanguem Sanguem Taluka
12. Civil Registrar-cum-Sub-Registrar, Canacona Canacona Taluka
This Notification shall come into force with immediate effect.
(Published in the Official Gazette Series I No. 49(Extraordinary) dated 7-3-2019) (w.e.f. 8/42/2018-
LD(Estt)/469 dated 6-03-2019)
STATE AMENDMENT
Maharashtra
Substitution of section 57 of Act IX of 1932.—For section 57 of the principal Act, the following section
shall be substituted, namely:—
“57. Appointment of Registrar of Firms and Deputy and Assistant Registrars of Firms.—(1) The State
Government may, by notification in the Official Gazette, appoint a Registrar of Firms who shall exercise,
perform and discharge the powers, functions and duties of the Registrar under this Act throughout the
State of Maharashtra.
(2) The State Government may likewise appoint one or more Deputy Registrars of Firms and
Assistant Registrars of Firms who shall exercise, perform and discharge all or such of the powers,
functions and duties of the Registrar and in such areas as the State Government may, by notification in the
Official Gazette, specify.
(3) The officers appointed under sub-section (1) and sub-section (2) shall be deemed to be public
servants within the meaning of section 21 of the Indian Penal code (XLV of 1860). ”
[Vide Maharashtra Act 29 of 1984, s. 5]
58. Application for registration.—(1) The registration of a firm may be effected at any time by
sending by post or delivering to the Registrar of the area in which any place of business of the firm is
situated or proposed to be situated, a statement in the prescribed form and accompanied by the prescribed
fee, stating—
(a) the firm name,
(b) the place or principal place of business of the firm,
(c) the names of any other places where the firm carries on business,
(d) the date when each partner joined the firm,
(e) the names in full and permanent addresses of the partners, and
(f) the duration of the firm.
The statement shall be signed by all the partners, or by their agents specially authorised in this behalf.
(2) Each person signing the statement shall also verify it in the manner prescribed.
(3) A firm name shall not contain any of the following words, namely:—
“Crown”, “Emperor”, “Empress”, “Empire”, “Imperial”, “King”, “Queen”, “Royal”, orwords
expressing or implying the sanction, approval or patronage of 1*** Government 2***,except 3[when
the State Government] signifies 4[its] consent to the use of such words as part of the firm name by
order in writing 5***.
1. The words “the Crown or the Central Government or any Provincial” omitted by the A. O. 1950. The words “the
CentralGovernment or any Provincial Government or the Crown Representative” were subs. by the A. O. 1937 for “the G. of I.
or a L. G.”
2. The words “or the Crown Representative” omitted by the A.O. 1948.
3. Subs. by the A.O. 1937, for “when the G.G. in C.”.
4. Subs.ibid. for “his”
5. The words “under the hand of one of the Secretaries to the G. of I.” omitted, ibid.
18
STATE AMENDMENT
Goa, Daman and Diu
The Government of Goa is hereby pleased to levy a non-refundable processing fee of Rs.
1,000/- (Rupees one thousand only) for processing the documents for registration of Partnership
Firm under the Indian Partnership Act, 1932 (Central Act 9 of 1932).
This Order shall come into force with effect from the 1st day of April, 2017.
(Published in the Official Gazette Series I No. 52 (Extraordinary-2) dated 31-3-2017) (w.e.f. 8-5-2017-
LD(Estt.) (C)/407 dated 31-3-2017)
Uttarakhand
Substitution of section 58.—In the Indian Partnership Act, 1932, (hereinafter referred to as the
Principal Act) section 58 shall be substituted as follows, namely:-
Maharashtra
58. Application for registration.—(1) The registration of a firm may be effected at any time by
uploading on the website following statement in the prescribed online form and accompanied with
prescribed fees to the Registrar of the area in which any place of business of the firm is situated or
proposed to be situated, stating.—
(a) the firm name,
(b) the place or principal place of business of the firm,
(c) the names of any other places where the firm carries on business,
(d) the date when each partner joined the firm,
(e) the names in full and permanent addresses of the partners, and
(f) the duration of the film.
The statement shall be digitally signed by all the partners or by their agents specially authorized
in this behalf.
(2) The applicant, signing the statement shall also upload to the website, verifying the statement
recorded in the online format mentioned in sub-section (1), verifying it in the affidavit certified by the
Notary on the non-judicial stamp paper of Rs. 10/.
(3) The desired enclosed shall also be uploaded on website, by the applicant.
(4) A firm name shall not contain the word Union, State, Land Mortgage, Land development,
Cooperative, Gandhi, Reserve Bank or any of the words expressing or implying the sanction, approval or
patronage of Government, except when the State Government signifies its consent to the use of such
words as part of the firm name by order in writing.
(5) The prescribed fee of registration shall be submitted online after the online approval given by the
Registrar.
(6) After submitting the prescribed registration fee the digitally signed registration certificate may be
downloaded from the website by the applicant.
[Vide Uttarakhand Act 5 of 2019, s. 2]
Rajasthan
Amendment of section 58, Central Act IX of 1932.—For sub-section (3) of section 58 of the Indian
Partnership Act, 1932 (Central Act IX of 1932), hereinafter referred to as the principal Act, the following
sub-sections shall be substituted, namely :-
"(3) No firm shall be registered by a name which, in the opinion of the State Government, is
undesirable.
19
(4) Except with the previous sanction in writing of the State Government, no firm shall be registered
by a name which contains any of the following words, namely:-
(a) 'Union', 'State', 'President', 'Republic' or any word expressing or implying the sanction,
approval or patronage of the Central or any State Government ; and
(b) 'Municipal', 'Chartered' or any word which suggests or is calculated to suggest connection
with any municipality or other local authority:
Provided that nothing in this sub-section shall apply to any firm registered before the date of the
commencement of the Indian Partnership (Rajasthan Amendment) Act, 1971."
[Vide Rajasthan Act 10 of 1971, s. 2]
Maharashtra
Amendment of section 58 of Act IX of 1932.—In section 58 of the principal Act,—
(a) in sub-section (1),—
(i) for the words “The registration of a firm” the words, brackets, figure and letter “Subject to the
provisions of sub-section (1A), the registration of a firm” shall be substituted ;
(ii) the words “at any time” shall be deleted ;
(iii) after the words “prescribe fee” the words “and a true copy of the deed of partnership” shall be
inserted ;
(iv) after clause (a), the following clause shall be inserted, namely :—
“(aa) the nature of business of the firm;”;
(b) after sub-section (1), the following sub-section shall be inserted, namely :—
“(1A) The statement under sub-section (1) shall be sent or delivered to the Registrar within a
period of one year from the date of constitution of the firm :
Provided that in the case of any firm carrying on business on or before the date of commencement
of the Indian Partnership (Maharashtra Amendment) Act, 1984, (Mah. XXIX of 1984) such statement
shall be sent or delivered to the Registrar within a period of one year from such date.” ;
(c) for sub-section (3), the following sub-section shall be substituted, namely :—
“(3) A firm shall not have any of the names or emblems specified in the Schedule to the Emblems
and Names (Prevention of Improper Use) Act, 1950, (XII of 1950) or any colourable imitation thereof,
unless permitted so to do under that Act, or any name which is likely to be associated by the public with
the name of any other firm on account of similarity, or any name which, in the opinion of the Registrar,
for reasons to be recorded in writing, is undesirable :
Provided that nothing in this sub-section shall apply to any firm registered under any such name
before the date of the commencement of the Indian Partnership (Maharashtra Amendment) Act, 1984.
(4) Any person aggrieved by an order of the Registrar under sub-section (3) may, within 30 days
from the date of communication of such order, appeal to the officer not below the rank of Deputy
Secretary to Government authorised by the State Government in this behalf, in such manner, and on
payment of such fee, as may be prescribed. On receipt of any such appeal, the authorised officer shall,
after giving an opportunity of being heard to the appellant, decide the appeal, and his decision shall be
final.”.
[Vide Maharashtra Act 29 of 1984, s. 6]
59. Registration.—Where the Registrar is satisfied that the provisions of section 58 have been duly
complied with, he shall record an entry of the statement in a register called the Register of Firms, and
shall file the statement.
20
STATE AMENDMENTS
Karnataka
Amendment of section 59A.—In section 59A of the Indian Partnership Act, 1932 (Central Act IX of
1932), in sub-section (1), for the words “by reason of the reorganization of States”, the words, figures and
brackets “by reason of the addition of the Bellary District to the State of Mysore under the Andhra State
Act, 1953 (Central Act XXX of 1953), or of the reorganization of States under the States Reorganisation
Act, 1956 (Central Act 37 of 1956)” shall be substituted.
[Vide Karnataka Act 19 of 1961, s. 2]
Maharashtra
Amendment of section 59A-1 of IX of 1932.-In section 59A-1 of the Indian Partnership Act, 1932
(IX of 1932), in its application to the State of Maharashtra (hereinafter referred to as "the principal Act"),
for the words "one hundred rupees" the words "one thousand rupees" shall be substituted.
[Vide Maharashtra Act 16 of 2018, s. 2]
Goa, Daman and Diu
As required under the Ease of Doing Business, Government of Goa, Law (Establishment)
Division and Registration Department hereby mandates “Registration of Partnership Firms” shall be
accepted and processed Online only without requiring the applicant to submit a physical copy of the
application or associated supporting documentation including executed deed of Partnership. The
department staff (all Sub-Registrar Officers) are hereby instructed to process application through the
online mode only.
Further, it is also mandated that all queries against applicants, applications (if any) should be
submitted to the applicants only once and within 7 days of receipt of the application.
This Notification shall come into force with effect from 8th of March, 2019.
This issues in supersession to earlier Notification of even number dated 11-12-2018 and all the
Partnership Firms registration initiated under Online Partnership Registration Web
Application/Website (https://partnership.goa.gov.in).
(Published in the Official Gazette Series I No. 49(Extraordinary) dated 7-3-2019) (w.e.f. 8/8/2018-
LD(Estt)/470 dated 7th March 2019.)
Maharashtra
Amendment of section 59 of Act IX of 1932.—Section 59 of the principal Act shall be renumbered as
sub-section (1) of that section, and,—
(a) in sub-section (1) as so renumbered, after the words “file the statement.” The words “On the
date such entry is recorded and such statement is filed, the firm shall be deemed to be registered.”
Shall be added ;
(b) after sub-section (1) as so renumbered, the following sub-section shall be added, namely :—
“(2) The firm, which is registered, shall use the brackets and words “(Registered)” immediately after its
name.”.
[Vide Maharashtra Act 29 of 1984, s.7]
Insertion of section 59A-1 in Act IX of 1932.—After section 59 of the principal Act, the following
section shall be inserted, namely :—
“59A-1. Late registration on payment of penalty.—If the statement in respect of any firm is not sent or
delivered to the Registrar within the time specified in sub-section (1A) of section 58, then the firm may be
registered on payment, to the Registrar, of a penalty of one hundred rupees per year of delay or a part
thereof.”
[Vide Maharashtra Act 29 of 1984, s.8]
21
60. Recording of alterations in firm name and principal place of business.—(1) When an
alteration is made in the firm name or in the location of the principal place of business of a registered
firm, a statement may be sent to the Registrar accompanied by the prescribed fee, specifying the
alteration, and signed and verified in the manner required under section 58.
(2) When the Registrar is satisfied that the provisions of sub-section (1) have been duly complied
with, he shall amend the entry relating to the firm in the Register of Firms in accordance with the
statement, and shall file it along with the statement relating to the firm filed under section 59.
STATE AMENDMENT
Amendment of section 60 of Act IX of 1932.—In section 60 of the principal Act,—
(a) for sub-section (1), the following sub-section shall be substituted, namely:—“(1) When an
alteration is made in the firm name or in the nature of business of a firm or in the location of the principal
place of business of a registered firm, a statement shall be sent to the Registrar, within a period of 90 days
from the date of making such alteration, accompanied by the prescribed fee, specifying the alteration and
signed and verified in the manner required under section 58.”;
(b) in the marginal note for the words “firm name and” the words “firm name, nature of business
and” shall be substituted.
[Vide Maharashtra Act 29 of 1984, s.9]
61. Noting of closing and opening of branches.—When a registered firm discontinues business at
any place or begins to carry or business at any place, such place not being its principal place of business,
any partner or agent of the firm may send intimation thereof to the Registrar, who shall make a note of
such intimation in the entry relating to the firm in the Register of Firms, and shall file the intimation along
with the statement relating to the firm filed under section 59.
STATE AMENDMENT
Maharashtra
Amendment of section 61 of Act IX of 1932.—In section 61 of the principal Act, for the words “may
send intimation thereof to the Registrar, who shall” the following shall be substituted, namely :—
“shall sent intimation thereof to the Registrar, within a period of 90 days from the date of such
discontinuance or, as the case may be, from the date on which the firm begins to carry on business at such
place. The Registrar shall then”.
[Vide Maharashtra Act 29 of 1984, s.10]
62. Noting of changes in names and addresses of partners.—When anypartner in a registered firm
alters his name or permanent address, an intimation of the alteration may be sent by any partner or agent
of the firm to the Registrar, who shall deal with it in the manner provided in section 61.
STATE AMENDEMT
Maharashtra.
Amendment of section 61 of Act IX of 1932—In section 62 of the principal Act, for the words “may be
sent” the words “shall be sent, within a period of 90 days from the date of making such alteration,” shall
be substituted.
[vide Maharashtra Act 29 of 1984, s. 11]
63. Recording of changes in and dissolution of a firm. Recording of withdrawal of a minor.—(1)
When a change occurs in the constitution of a registered firm any incoming, continuing or
outgoingpartner, and when a registered firm is dissolved any person who was a partner immediately
before the dissolution, or the agent of any such partner or person specially authorised in this behalf, may
give notice to the Registrar of such change or dissolution, specifying the date thereof; and the Registrar
shall make a record of the notice in theentry relating to the firm in the Register of Firms, and shall file the
notice along with the statement relating to the firm filed under section 59.
(2) When a minor who has been admitted to the benefits of partnership in a firm attains majority and
elects to become or not to become a partner, and the firm is then a registered firm, he, or his agent
22
specially authorised in this behalf, may give notice to the Registrar that he has or has not become a
partner, and the Registrar shall deal with the notice in the manner provided in sub-section (1)
STATE AMENDMENT
Maharashtra
Amendment of section 63 of Act IX of 1932.—(a) In sub-section (1),—
(i) for the word “any”, where it occurs, the word “every” shall be substituted ;
(ii) for the words “may give notice to the Registrar of such change or dissolution, specifying the date
thereof ;” the following shall be substituted, namely :—
“shall, within a period of 90 days from the date of such change or dissolution, give notice to the
Registrar of such change or dissolution, specifying the date thereof;”;
(b) after sub-section (1), the following sub-section shall be added, namely :—
“(1A) Where a change occurs in the constitution of a registered firm, all persons, who after such
change are partners of the firm, shall jointly send an intimation of such change duly signed by them,
to the Registrar, within a period of 90 days from the date of occurrence of such change and the
Registrar shall deal with it in the manner provided by section 61.” ;
(c) in sub-section (2), for the words “may give notice to the Registrar” the words “shall, within a
period of 90 days from the date of his election, give notice to the Registrar” shall be substitutied.
[vide Maharashtra Act 29 of 1984, s. 12]
64. Rectification of mistakes.—(1) The Registrar shill have power at all times to rectify any mistake
in order to bring the entry in the Register of Firms relating to any firm into conformity with the
documents relating to that firm filed under this Chapter.
(2) On application made by all the parties who have signed any document relating to a firm filed
under this Chapter, the Registrar may rectify any mistake in such document or in the record or note
thereof made in the Register of Firms.
65. Amendment of Register by order of Court.—A Court deciding any matter relating to a
registered firm may direct that the Registrar shall make any amendment in the entry in the Register of
Firms relating to such firm which is consequential upon its decision; and the Registrar shall amend the
entry accordingly.
66. Inspection of Register and filed documents.—(1) The Register of Firms shall be open to
inspection by any person on payment of such fee as may be prescribed.
(2) All statements, notices and intimations filed under this Chapter shall be open to inspection,
subject to such conditions and on payment of such fee as may be prescribed.
67. Grant of copies.—The Registrar shall on application furnish to any person, on payment of such
fee as may be prescribed, a copy, certified under his hand, of any entry or portion thereof in the Register
of Firms.
STATE AMENDMENT
Uttarakhand
Substituted of section 67.—In Principal Act, section 67 shall be substituted as follow, namely:--
67. Grant of copies.—The Registrar shall on online application furnish to any person, on
payment of such fee as may be prescribed , a copy digitally certified under his hand of any entry or
portion thereof in the register of firms.
[Vide Uttarakhand Act 5 of 2019, s. 3]
68. Rules of evidence.—(1) Any statement, intimation or notice recorded or noted in the Register of
Firms shall, as against any person by whom or on whose behalf such statement, intimation or notice was
signed, be conclusive proof of any fact therein stated.
23
(2) A certified copy of an entry relating to a firm in the Register of Firms may be produced in proof
of the fact of the registration of such firm, and of the contents of any statement, intimation or notice
recorded or noted therein.
STATE AMENDMENT
Uttarakhand
Amendment of section 68.—In Principal Act, sub-section (1) of section 68 shall be substituted as
follows, namely:--
68. Rules of Evidence:--(1) Any statement, intimation or notice recorded or noted in the register of
Firms shall, as against any person by whom or on whose behalf such statement, intimation or notice was
digitally signed, be conclusive proof of any fact therein stated.
[Vide Uttarakhand Act 5 of 2019, s. 4]
69. Effect of non-registration.—(1) No suit to enforce a right arising from a contract or conferred by
this Act shall be institutes in any Court by or on behalf of any person suing as a partner in a firm against
the firm or any person alleged to be or to have been a partner in the firm unless the firm is registered and
the person suing is or has been shown in the Register of Firms as a partner in the firm.
(2) No suit to enforce a tight arising from a contract shall be instituted in any Court by or on behalf of
a firm against any third party unless the firm is registered and the persons suing are or have been shown
in the Register of Firms as partners in the firm.
(3) The provisions of sub-sections (1) and (2) shall apply also to a claim of set-off or other proceeding
to enforce a right arising from a contract, but shall not affect—
(a) the enforcement of any right to sue for the dissolution of a firm or for accounts of a dissolved
firm, or a ay right or power to realise the property of a dissolved firm, or
(b) the powers of an official assignee, receiver or Court under the Presidency-towns Insolvency
Act, 1909 (2 of 1909), or the Provincial Insolvency Act, 1920 (5 of 1920), to realise the property of
an insolvent partner.
(4) This section shall not apply—
(a) to firms or to partners in firms which have no place of business in 1[the territories to which
this Act extends], or whose places of business in 2[the said territories] are situated in areas to which,
by notification under 3[section 56], this Chapter does not apply, or
(b) to any suit or claim of set-off not exceeding one hundred rupees in value which, in the
Presidency-towns, is not of a kind specified in section 19 of the Presidency Small Cause Courts Act,
1882 (15 of 1882), or, outside the Presidency-towns, is not of a kind specified in the Second Schedule
to the Provincial Small Cause Courts Act, 1887 (9 of 1887), or to any proceeding in execution or
other proceeding incidental to or arising from any such suit or claim.
STATE AMENDMENT
Maharashtra
Substitution of section 69A of IX of 1932.--For section 69A of the principal Act, the following
section shall be substituted, namely:--
"69A. Charges for delay in compliance of section 60, 61, 62 or 63.--If any statement, intimation or
notice under section 60, 61, 62 or as the case may be, 63, in respect of any registered firm is not sent or
given to the Registrar, within the period specified in that section, the Registrar may, make suitable
amendments in the records relating to the firm, upon payment of charges for delay in sending or giving
1. Subs. by Act 3 of 1951, s. 3 and the Schedule, for “Part A States and Part C States”.
2. Subs. by s. 3 and the Schedule, ibid.,for “such States”.
3. Subs. by Act 24 of 1934, s. 2 and the First Schedule, for “section 55”.
24
the same, at the rate of rupees two thousand per year or part thereof in respect of the period between the
date of expiry of the period specified in that section and the date of making the payment.”.
[Vide Maharashtra Act 16 of 2018, s. 3]
Amendment of section 69 of Act IX of 1932.—In section 69 of the principal Act,—
(a) to sub-section (1), the following proviso shall be added, namely :—
“Provided that the requirement of registration of firm under this sub-section shall not apply to the
suits or proceedings instituted by the heirs or legal representatives of the deceased partner of a firm for
accounts of the firm or to realise the property of the firm.”;
(b) after sub-section (2), the following sub-section shall be inserted, namely :—
“(2A) No suit to enforce any right for the dissolution of a firm or for accounts of a dissolved firm
or any right or power to realise the property of a dissolved firm shall be instituted in any Court by or
on behalf of any person suing as a partner in a firm against the firm or any person alleged to be or to
have been a partner in the firm, unless the firm is registered and the person suing is or has been shown
in the Register of Firm as a partner in the firm :
Provided that the requirement of registration of firm under this sub-section shall not apply to the
suits or proceedings instituted by the heirs or legal representatives of the deceased partner of a firm for
accounts of a dissolved firm or to realise the property of a dissolved firm.”;
(c) in sub-section (3),—
(i) for the words, brackets and figures “sub-sections (1) and (2)” to words, brackets, figures and letter
“sub-sections (1), (2) and (2A)” shall be substituted ;
(ii) for clause (a), the following clause shall be substituted, namely :—
“(a) the firms constituted for a duration upto six months or with a capital upto two thousand
rupees ; or”
[Vide Maharashtra Act 29 of 1984, s. 13]
Insertion of section 69A in Act IX pf 1932.—After section 69 of the principal Act, the following
section shall be inserted, namely :—
69A. Penalty for contravention of sections 60, 61, 62 or 63.—If any statement, intimation or notice
under sections 60,61, 625 or 63 in respect of any registered firm is not sent or given to the Registrar,
within the period specified in that section, the Registrar may, after giving notice to the partners of the firm
and after giving them a reasonable opportunity of being heard, refuse to make the suitable amendments in
the records relating to the firm, until the partners of the firm pay such penalty, not exceeding ten rupees
per day, as the Registrar may determine in respect of the period between the date of expiry of the period
specified 60, 61, 62, or as the case may be, 63 and the date of making the amendments in the entries
relating to the firm.”.
70. Penalty for furnishing false particulars.—Any person who signs any statement, amending
statement, notice or intimation under this Chapter containing any particular which he knows to be false or
does not believe to be true, or containing particulars which he knows to be incomplete or does not believe
to be complete, shall be punishable with imprisonment which may extend to three months, or with fine, or
with both.
STATE AMENDMENT
Maharashtra
Amendment of section 70 of Act IX of 1932.—In section 70 of the principal Act, for the words
“shall be punishable with imprisonment which may extend to three months, or with fine, or with both.”
The following shall be substituted, namely :—
“shall, on conviction, be punished with imprisonment for a term which may extend to one year, or
with fine, or with both :
Provided that in the absence of special and adequate reasons to the contrary to be mentioned in the
judgement of the Court, the fine shall not be less than one thousand rupees.”.
25
•
[vide Maharashtra Act 29 of 1984, s. 15]
Maharashtra
Insertion of section 70A in Act IX of 1932.—After section 70 of the principal Act, the following
section shall be inserted, namely :—
70A. Maximum fees and power to amend Schedule I.—(1) The fees payable under this Act and
rules made thereunder shall not exceed the maximum fees as specified in Schedule I.
(2) Subject to the provisions of this section, the State Government may, having regard to the
expenditure incurred or to be incurred for carrying out the purposes of this Act, from time to time, by
notification in the Official Gazette, vary and of the amount of maximum fees and other particulars
specified in Schedule I, and, thereupon, the said Schedule shall be deemed to be amended accordingly.
(3) Every notification issued under sub-section (2) shall take effect from the date of its publication in
the Official Gazette, unless some other date is specified therein for this purpose.
(4) Every notification issued by the State Government under sub-section (2) shall be laid, as soon as
may be after it is issued, before each House of the State Legislature, while it is in session, for a total
period of thirty days, which may be comprised in one session or in two successive sessions, and if, before
the expiry of the session in which it is so laid or the session immediately following, both Houses agree in
making any modification in the notification or both Houses agree that the notification should not be
issued, and notify such decision in the Official Gazette, the notification shall, from the date of publication
of such decisions, have effect only in such modified form or be of no effect, as the case may be; so,
however, that any such modification or annulment shall be without prejudice to the validity of anything
previously done or omitted to be done in pursuance of that notification.”.
[vide Maharashtra Act 29 of 1984, s. 16]
71. Power to make roles.—(1) The 1[State Government] 2[may by notification in the Official Gazette
make rules] prescribing the fees which shall accompany documents sent to the Registrar of Firms, or
which shall be payable for the inspection of documents in the custody of the Registrar of Firms, or for
copies from the Register of Firms:
Provided that such fees shall not exceed the maximum fees specified in Schedule I.
(2) The State Government may 3[also] make rules—
(a) prescribing the form of statement submitted under section 58, and of the verification thereof;
(b) requiring statements, intimations and notices under sections 60, 61, 62 and 63 to be in
prescribed form,and prescribing the form thereof;
(c) prescribing the form of the Register of Firms, and the mode in which entries relating to firms
are to be made therein, and the mode in which such entries are to be amended or notes made therein;
(d) regulating the procedure of the Registrar when disputes arise;
(e) regulating the filing of documents received by the Registrar;
(f) prescribing conditions for the inspection of original documents;
(g) regulating the grant of copies;
(h) regulating the elimination of registers and documents;
(i) providing for the maintenance and form of an index to the Register of Firms; and
(j) generally, to carry out the purposes of this Chapter.
(3) All rules made under this section shall be subject to the condition of previous publication.
4[(4) Every rule made by the State Government under this section shall be laid, as soon as it is made,
before the State Legislature.]
1. Subs. by the A.O. 1937, for “G.G. in C.”.
2. Subs. by Act 20 of 1983, s. 2 and the Schedule, for “may make rules” (w.e.f. 15-3-1984).
3. Ins. by the A.O. 1937.
4. Ins. by Act 20 of 1983, s. 2 and Schedule (w.e.f. 15-3-1984).
26
STATE AMENDMENT
Amendment of section 71 of Act IX of 1932.—(a) for sub-section (1), the following sub-
section shall be substituted, namely :—
“(1) Subject to the provisions of section 70A, the State Government may, by notification
in the Official Gazette, make rules prescribing the fees which shall accompany documents sent
to the Registrar or which shall be paid in respect of any intimation, notice or application given
to the Registrar or which shall be payable for the inspection of documents in the custody of the
Registrar or for copies from the Register of Firms or which shall be paid for supply of any
prescribed forms.”
(b) in sub-section (2),—
(i) in clause (a), for the words and figures “under section 58” the words, brackets and
figures “under sub-section (1) of section 58” shall be substituted ;
(ii) after clause (a), the following clause shall be inserted, namely :—
“(aa) for sub-section (4), the following sub-section shall be substituted namely :—
(c) for sub-section (4), the following sub-section shall be substituted namely :—
“(4) Every rule made under this section shall be laid, as soon as may be after it is made,
before each House of the State Legislature, while it is in session, for a total period of thirty
days, which may be comprised in one session or in two successive sessions, and if, before the
expiry of the session in which it is so laid or the session immediately following, both Houses
agree in making any medication in the rule or both Houses agree that the rule should not be
made, and notify such decision in the Official Gazette, the rule shall, from the date of
publication of such decision, have effect only in such modified form or be of no effect, as the
case ,may be; so, however, that any such modification or annulment shall be without prejudic e
to the validity of anything previously done of omitted to be done in pursuance of that rule”
[Vide Maharashtra Act 296 of 1984, s. 17]
CHAPTER VIII
SUPPLEMENTAL
72. Mode of giving public notice.—A public notice under this Act is given—
(a) where it relates to the retirement or expulsion of a partner from a registered firm, or to the
dissolution of a registered firm, or to the election to become or not to become a partner in a registered
firm by a person attaining majority who was admitted as a minor to the benefits of partnership, by
notice to the Registrar of Firms under section 63, and by publication in the Official Gazette and in at
least one vernacular newspaper circulating in the district where the firm to which it relates has its
place or principal place of business, and
(b) in any other case, by publication in the Official Gazette and in at least one vernacular
newspaper circulating in the district where the firm to which it relates has its place or principal place
of business.
73. [Repeals.] Rep. by the Repealing Act, 1938 (1 of 1938), s. 2 and Sch.
74. Savings.—Nothing in this Act or any repeal effected thereby shall affect or be deemed to affect—
(a) any right, title, interest, obligation or liability already acquired, accrued or incurred before the
commencement of this Act, or
(b) any legal proceeding or remedy in respect of any such right, title, interest, obligation or
liability, or anything done or suffered before the commencement of this Act, or
27
(c) anything done or suffered before the commencement of this Act, or
(d) any enactment relating to partnership not expressly repealed by this Act, or
(e) any rule of insolvency relating to partnership, or
(f) any rule of law not inconsistent with this Act.
_____
28
SCHEDULE I
MAXIMUM FEES
[See sub-section (1) of section 71.]
Document or act in respect of which
the fee is payable
Maximum fee
Statement under section 58………………………... Three rupees.
Statement under section 60………………………... One rupee.
Intimation under section 61………………………... One rupee.
Intimation under section 62 ……………………….. One rupee.
Notice under section 63……………………………. One rupee.
Application under section 64……………………… One rupee.
Inspection of the Register of Firms under Eight annas for inspecting one
sub-section (1) of section 66…………………….… volume of the Register.
Inspection of documents relating to a firm Eight annas for the inspection
under sub-section (2) of section 66…….………….. of all documents relating to onefirm.
Copies from the Register of Firms Four annas for each hundred
words of part thereof.
STATE AMENDMENTS
Karnataka
Amendment of Schedule I.—In schedule I to the Indian Partnership Act, 1932 (Central Act 9 of
1932),—
(1) for the words “Three rupees” and “Four annas”, where they occur, the words “one hundred
rupees”, and “one rupees”, shall respectively be substituted;
(2) for the words “One rupee” appearing against “Statement under section 60”, the words, “fifty
rupees”, shall be substituted;
(3) for the words “One rupee” appearing against “Intimation under section 61,” “Intimation under 62”
and “Notice under section 63” and “application under section 64,” the words “Twenty five rupees” shall
respectively be substituted.
(4) for the words, “Eight annas” appearing against “Inspection of the Register of Firms under sub-
section (1) of section 66”, the words, “Twenty rupees”, shall be substituted;
(5) for the words, “Eight annas”, appearing against “Inspection of documents relating to a firm under
sub-section (2) of section 66”, the words “Ten rupees” shall be substituted.
[Vide Karnataka Act 1 of 1987, s. 2].
29
STATE AMENDMENT
Kerala
Substitution of new Schedule for Schedule I.-In the Indian Partnership Act, 1932 (Central Act 9 of
1932), for Schedule I, the following Schedule shall be substituted, namely
“SCHEDULEI
MaximumFees
[See sub-section (1) of section 71]
Document or act in respect of which the fee is
payable
Maximum fee
Statement under section 58 Five hundred rupees.
Statement under section 60 Two hundred rupees.
Intimation under section 61 Two hundred rupees.
Intimation under Section 62 Two hundred rupees
Notice under section 63 Two hundred rupees
Application udner section 64 Two hundred rupees
Inspection of the Register of Firms under sub-section
(1) of section 66
Fifty Rupees for inspecting one volumn of
theRegister.
Inspection of documents relating to a firm under sub-
section (2) of section 66
One hundred rupees for the inspection of all
documents relating to one firm.
Copies from the Register of Firms One hundred rupees for each hundred words
or a part thereof.”
[Vide Kerala Act 32 of 2013, s. 2]
Kerala
Substitution of new Schedule for Schedule I.-In the Indian Partnership Act, 1932 (Central Act 9
of 1932), for Schedule I, the following Schedule shall be substituted, namely:-
“SCHEDULE I
Maximum Fees
[See sub-section (1) of section 71]
Document or act in respect of which the fee is
payable
Maximum fee
Statement under section 58 Fifteen rupees
Statement under section 60 Five rupees
Intimation under section 61 Five rupees
Intimation under section 62 Five rupees
Notice under section 63 Five rupees
Application under section 64 Five rupees
Inspection of the Register of Firms under sub-section
(1) of section 66
Two rupees for inspecting one volume of the
Register
Inspection of documents relating to a firm under sub-
section (2) of section 66
Two rupees for the inspection of all
documents relating to one firm
Copies from the Register of Firms Fifty paise for each hundred words or part
thereof.”
[Vide kerala Act 25 of 1973, s. 2]
30
Rajasthan
Substitution of Schedule I to the Central Act IX of 1932. – In Schedule I of Indian Partnership Act,
1932 (Central Act IX of 1932), for Schedule I, as existing in the application thereof to the State of
Rajasthan, the following shall be substituted, namely:-
"SCHEDULE-I
Maximum Fees
[See sub-section (1) of Section 71]
Document or Act in respect of which the
fee is payable.
Maximum Fee
1 2 3
1. Statement under Section 58 Hundred Rupees
2. Statement Under Section 60 Thirty Rupees
3. Intimation Under Section 61 Thirty Rupees
4. Intimation Under Section 62 Thirty Rupees
5. Notice Under Section 63 Thirty Rupees
6. Application Under Section 64 Thirty Rupees
7. Inspection of the Register of Firms Under
Sub-Section (1) of Section 66
Twenty Ruppes for inspection of one
volume of register
8. Inspection of documents relating to a firm
under sub-section (2) of Section 66
Twenty Rupees for inspection of all
documents relating to one firm
9. Copies from the Register of Firms Six Rupees for each hundred words or
part thereof.”
[Vide Rajasthan Act 8 of 1996, s. 2]
31
Substitution of new Schedule for Schedule I to Central Act IX of 1932.— For Schedule I to the
principal Act, the following Schedule shall be substituted, namely:-
"SCHEDULE I
Maximum Fees.
(See sub-section (1) of section 71)
Document or act in respect of which the fee is
payable.
1
Maximum fee.
2
1. Statement under section 58. Fifteen rupees.
2. Statement under section 60. Five rupees.
3. Intimation under section 61. Five rupees.
4. Intimation under section 62. Five rupees.
5. Notice under section 63. Five rupees.
6. Application under section 64. Five rupees.
7. Inspection of the register of firms Two rupees, for inspecting
under sub-section (1) of section 66. one volume of Register.
8. Inspection of documents relating to a firm Two rupees for inspection
under Sub-section (2) of section 66. of all documents relating
to one firm.
9. Copies from the register of firms . Two rupees for each
hundred words or part thereof.”
[Vide Rajasthan Act 10 of 1971, s. 2]
Substitution of Schedule I to the Central Act IX of 1932.-In Schedule I of Indian Partnership Act,
1932 (Central Act IX of 1932), for Schedule I, as existion in the application thereof to the State of
Rajasthan, the following shall be substituted, namely:—
"SCHEDULE-I
Maximum Fees
[See sub-section (1) of section 71]
S.
No.
Document or act in respect of which the fee is payable Maximum Fee
1. 2. 3.
1. Statement under section 58 Three hundred rupees
2. Statement under section 60 One hundred rupees
3. Intimation under section 61 One hundred rupees
32
4. Intimation under section 62 One hundred rupees
5. Notice under section 63 One hundred rupees
6. Application under section 64 One hundred rupees
7. Inspection of the Register of firms under sub-section (1) of
section 66
One hundred rupees for
inspection of one volume of
Register
8. Inspection of documents relating to a firm under sub-
section (2) of section 66
One hundred rupees for
inspection of all documents
relating to one firm
9. Copies from the Register of firms Fifteen rupees for each hundred
words or part thereof."
[Vide Rajasthan Act 7 of 2007, s. 2]
Gujarat
Substituted of Schedule of I of 9 of 1932.—In the Indian Partnership Act, 1932 (9 of 1932), in its
application
“SHEDULE I
MAXIMUM FEES
(See sub-section (1) of section 71)
Document or act in respect of which the fee is
payable
Maximum fee
Statement under section 58 Three hundred rupees
Statement under section 60 One hundred fifty rupees
Statement under section 61 One hundred fifty rupees
Statement under section 62 One hundred fifty rupees
Notice under section 63 One hundred fifty rupees
Application under section 64 One hundred fifty rupees
Inspection of the Register of Firms
under sub-section /1) of section 66
Fifty rupees for inspecting one
volume of the register
Inspection of documents relating to a
firm under sub-section /2) of section 66
Fifty rupees for inspection of all
documents relating to one firm
Copies from the Register of
Firms
Fifty rupees for each hundred
words or part thereof.".
[Vide Gujarat Act 25 of 2019, s. 2]
Maharashtra
Substitution of Schedule I to Act IX of 1932.—For Schedule I to the principal Act, the following
Schedule shall be substituted, namely :—
“SCHEDULE I
Maximum Fees
(See sections 70A and 71)
Document of act in respect of which the fee is payable Maximum fee
(1) Statement under section 58 (1) .. .. Fifty rupees.
(2) Memorandum of appeal under section 58(4) .. Twenty-five rupees.
(3) Statement under section 60 .. .. Fifteen rupees.
(4) Intimation under section 61 .. .. Fifteen rupees.
33
(5) Intimation under section 62 .. .. Fifteen rupees.
(6) Notice under section 63 (1) .. .. Fifteen rupees.
(7) Intimation under section 63(1A) .. .. Fifteen rupees.
(8) Notice under section 63(2) .. .. Fifteen rupees.
(9) Application under section 64 .. .. Fifteen rupees.
(10) Inspection of the Register of Firms under sub-section (1)
of section 66, for inspection of one volume of the Register
of Firms.
Seven rupees and fifty paise.
(11) Inspection of documents relating to a firm under sub-
section (2) of section 66, for the inspection of all
documents relating to one firm.
Seven rupees and fifty paise.
(12) Copies from the Register of firms under section 67, for
each hundred words or part thereof.
Two rupees.
(13) Price of Forms prescribed under the rules. One rupee per Form.
[Vide Maharashtra Act 29 of 1984, s. 18]
Kerala
Substitution of new Schedule for Schedule I. ---In the Indian Partnership Act, 1932 (Central Act 9 of
1932), for Schedule I, the following Schedule shall be substituted, namely:--
“Schedule I
Maximum Fees
[See sub-section (1) of section 71]
Document or act in respect of which the fee is
payable
Maximum fee
(1) (2)
Statement under section 58 Two thousand rupees
Statement under section 60 One thousand rupees
Intimation under section 61 One thousand rupees
Intimation under section 62 One thousand rupees
Notice under section 63 One thousand rupees
Application under section 64 One thousand rupees
Inspection of Register of Firms under
sub-section (1) of section 66
Five hundred rupees for the inspection of all
documents relating to one film
Copies from the Register of Firms One thousand rupees per copy.”
[Vide Kerala Act 3 of 2024, s. 2]
34
SCHEDULE II—[Enactments Repealed.] Rep. by Repealing Act, 1938 (1 of 1938), s. 2 and the Sch.
_______
35
STATEMENT OF OBJECTS AND REASONS
The Bill is sufficiently explained in the Report of the Special Committee printed below.
NEW DELHI L. GRAHAM.
The 20th January, 1931.
About this act
- Jurisdiction
- Central
- Enactment date
- 1932-04-08
- Sections available
- 74
Commencement information from the source
1932-10-01 (except section 69) 1933-10-01
Read the sections
1Short title, extent and commencement.→2Definitions.→3Application of provisions of Act 9 of 1872.→4Definition of “partnership”, “partner”, “firm” and “firm name”.→5Partnership not created by status.→6Mode of determining existence of partnership.→7Partnership at will.→8Particular partnership.→9General duties of partners.→10Duty to indemnify for loss caused by fraud.→11Determination of rights and duties of partners by contract between the partners.→12The conduct of the business.→13Mutual rights and liabilities.→14The property of the firm.→15Application of the property of the firm.→16Personal profits earned by partners.→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→18Partner to be agent of the firm.→19Implied authority of partner as agent of the firm.→20Extension and restriction of partner’s implied authority.→21Partner’s authority in an emergency.→22Mode of doing act to bind firm.→23Effect of admissions by a partner.,→24Effect of notice to acting partner.→25Liability of a partner for acts of the firm.→26Liability of the firm for wrongful acts of a partner.→27Liability of firm for misapplication by partners.→28Holding out.→29Rights of transferee of a partner ’s interest.→30Minors admitted to the benefits of partnership.→31Introduction of a partner.→32Retirement of a partner.→33Expulsion of a partner.→34Insolvency of a partner.→35Liability of estate of deceased partner.→36Rights of outgoing partner to carry on competing business.→37Right of outgoing partner in certain cases to share subsequent profits.→38Revocation of continuing guarantee by change in firm.→39Dissolution of a firm.→40Dissolution by agreement.→41Compulsory dissolution.→42Dissolution on the happening of certain contingencies.→43Dissolution by notice of partnership at will.→44Dissolution by the Court.→45Liability for acts of partners done after dissolution.→46Right of partners to have business wound up after dissolution.→47Continuing authority of partners for purposes of winding up.→48Mode of settlement of accounts between partners.→49Payment of firm debts and of separate debts.→50Personal profits earned after dissolution.→51Return of premium on premature dissolution.→52Rights where partnership contract is rescinded for fraud or misrepresentation.→53Right to restrain from use of firm name or firm property.→54Agreements in restraint of trade.→55Sale of goodwill after dissolution.→56Power to exempt from application of this Chapter.→57Appointment of Registrars.→58Application for registration.→59Registration.→60Recording of alterations in firm name and principal place of business.→61Noting of closing and opening of branches.→62Noting of changes in names and addresses of partners.→63Recording of changes in and dissolution of a firm.→64Rectification of mistakes.→65Amendment of Register by order of Court.→66Inspection of Register and filed documents.→67Grant of copies.→68Rules of evidence.→69Effect of non-registration.→70Penalty for furnishing false particulars.→71Power to make rules.→72Mode of giving public notice.→73[Repealed.].→74Savings.→
Schedules
India Code, Government of India. Text fetched 24 Oct 2026. Check the linked official text and subsequent notifications when applying a provision.