Partnership deed reg

JEGADEESAN (Querist) 26 January 2013 This query is : Resolved
Dear Sir,
I wish to clarify a doubt regarding Partnership.
i.e. M/s.LML Info is a registered firm with registrar of firms & it has 4 partners.Now three partners have decided to remove one of the partner due to his misconduct.
Is it legally valid?
Under which section he can be removed?
Normally under what are the circumstances a partner may be removed?

Regards,
S.Jegadeesan

Follow Query

Report Abuse

Adv.R.P.Chugh (Expert) 26 January 2013
The power to remove a partner can only be exercised if it is given in the partnership deed itself. If the power is there - then the same can be exercised by the majority of members however it has to be in good faith and after giving him a chance to rectify his default.

The concerned provision is :

Section 33 of Indian Partnership Act, 1932

EXPULSION OF A PARTNER.

(1) A partner may not be expelled from a firm by any majority of the partners, save
in the exercise in good faith or 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.