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Indian Partnership Act 1932

Indian Partnership Act 1932. Presenter Prateek Kumar Singh Section L Roll no 34 Batch: Jan 2010- Jan 2012. Contents. Essentials of Partnership “PARTNERSHIP NOT CREATED BY STATUS .” Registered Partnership firms Types of Partners Mode of giving public notice

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Indian Partnership Act 1932

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  1. Indian Partnership Act 1932 Presenter Prateek Kumar Singh Section L Roll no 34 Batch: Jan 2010- Jan 2012

  2. Contents • Essentials of Partnership • “PARTNERSHIP NOT CREATED BY STATUS.” • Registered Partnership firms • Types of Partners • Mode of giving public notice • Rights, Duties and Liabilities of Partner • Liability of a Firm • Modes of Dissolution of Partnership Firm • Process of Dissolution of Partnership

  3. Definition- Partnership • Relation between persons • Agreed to share the profits • Business carried on by all or any of them acting for all. • Persons who have come together are called individually, "partners" • Collectively "a firm", • Business is carried in the "firm-name".

  4. Essentials of Partnership • A partnership is an Association of two or more person • A partnership must emerge out a agreement • The business to carried out must be legal and acceptable by law. • The agreement must give all the essential details of Partnership e.g. profit sharing percentage, business to be conducted etc. • Minor cannot be a partner.

  5. “PARTNERSHIP NOT CREATED BY STATUS.” • The relation of partnership arises from contract and not from status • E.g. 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. Registered Partnership firms- Procedure of registration • Registration with Registrar of Firms • Detailed statement(informing name, address, partner details etc.) and applicable fee must be deposited with the Registrar • Statement must be signed and verified by all the partners.

  7. Unregistered Partnership firms- disadvantages • Any of the partner cannot file suit against the firm or against other partner to enforce his rights. • The firm cannot file suit against any third party to claim loss or enforce its rights. • Even the ‘right of set off’ is not available to the firm (i.e. setting off dues between other firms)

  8. Types of Partners • Sleeping partner or dormant partner • Nominal partner • Sub Partner • Working partner

  9. Partner Holding out or by Estoppel • E.g. Mr. Ramesh has retired from the firm named R.K Brothers. • He has not given a public notice of his retirement • Mr. Ramesh will still be deemed to be a ‘partner holding out’ or ‘partner by estoppel’

  10. Mode of giving public notice • A copy of the notice is required to be sent to the Registrar of Firms(this is not required if the firm being unregistered) • A copy must be published in the local Official gazette and in one local vernacular newspaper circulating in the district.

  11. Rights of Partner • Take part in the conduct of business • To share equally in the profits of the business • To access to and to inspect and copy from any books of the firm • To be joint owner of the property of the firm • In emergency, take all actions to safeguard firm • To resist introduction or admission of new partner • Right not to be expelled

  12. Duties of Partner • General Duties: To carry on the business of the firm, to be just and faithful, to give true accounts and complete information. • To indemnify the firm for the loss caused by him during the conduct of the firm’s business • To contribute to the losses of the firm in equal proportion. • Not to assign his own share to some other party • To attend to his duties diligently

  13. Liabilities of the Partner • General Liabilities arise when: • He fails to be just and faithful to all other partners, • He fails to carry on the business of the firm in highest common interest, • He fails to give true accounts. • To indemnify

  14. Liability of a Firm for wrongful acts of a partner The firm is liable in the given below situations: • If a loss or injury occurs to a third party due the act of the partner in course of business of the Firm • If a partner acting within his apparent authority receives money or property and misappropriates it. • If money received by the Firm in course of business and the partners misappropriate it.

  15. Modes of Dissolution of Partnership Firm • By mutual agreement: All partners agree to close business. • By notice of dissolution: By one partner giving notice to other partners • By operation of Law: If one of the partner is adjudicated insolvent • By happening of certain contingencies: Expiry at the completion of period • By a decree of the Court: If the suit is filed against the partnership and the court orders dissolution.

  16. Process of Dissolution of Partnership • Issuing a public notice • Return of premium on premature dissolution • Sale of Goodwill after dissolution if any • Payment of Partnership Debt • Settlement of Accounts

  17. Thank You

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