Partnership Act 1932合伙法.pptVIP

Business laws Unit-II Partnership Act, 1932 Introduction to Topic One of the forms in which business can be carried on is ‘partnership’, where two or more persons join together to form the partnership and run the business. In order to govern and guide partnership, the Indian Partnership Act, 1932 was enacted. Since public at large would be dealing with the partnership as customers, suppliers, creditors, lendors, employees or any other capacity, it is also very important for them to know the legal consequences of their transactions and other actions in relation with the partnership. Features of Partnership Act, 1932 Indian Partnership Act, 1932 is a Central Act. (made by Parliament This Act deals with special type of contract.( contract of partnership) Provisions regarding contract of partnership were earlier contained in the Indian Contract Act, 1872. This Act extends to the whole of India except the state of Jammu and Kashmir. This Act came in to force on 1.10.1932, except section 69 which came into force on the 1st Day of October, 1933. Meaning of ‘Partner’ ‘Firm’ and ‘Firm Name’ Section 4 of Indian Partnership Act, 1932 provides that: Persons who have agreed into partnership with one another are called individually ‘PARTNERS’ and collectively ‘FIRM’ and the name under which their business is carried on is called the ‘FIRM NAME’ “Partnership is thus Invisibility which binds the partners together and firm is the visible form of those partners who are thus bound together”. Maximum Limit on Number of Partners Section 11 Companies Act provides that the maximum no. of persons, a firm can have: Nature of Partnership A partnership firm is not a person in the eyes of Law (except for the purpose of taxation [sec.2 (31)] ). It has no separate legal entity (like company) apart from the partners constituting it. [Malabar Fisheries Co. v CIT] Further Section 5 of the Act provides that partnership arises from contract and not from status (like HUF). Solve the Case