Why are buddhist couple not considered as partners?
Dr. Sharad Garg
(Querist) 04 June 2012
This query is : Resolved
Indian Partnership Act does not consider Buddhist Couple as Partners despite the fact that they share profits. In fact it shown as an exception to partnership despite profit sharing.
Plz explain this concept of Buddhist couple
Dr V. Nageswara Rao
(Expert) 05 June 2012
1. S.5 of the Partnership Act provides: Section5. 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.
2. Jurisprudentially, 'Status' means the legal character of belonging to a class of persons possessing rights, duties, liabilities or disabilities distinct and seperate from others. Eg. status of being a minor, insolvent, married person etc.
3. S. 5 says that partnership arises out of contract or agreement between the parties and not because of status. In other words, members of Hindu Joint Family or Burmese Budhdhist couple are not ipso facto partners in the business unless there is a seperate agreement between each of them.
4. There is no bar for members of HUF etc to become partners but they should enter into agreement for the purpose.
Dr V. Nageswara Rao
(Expert) 05 June 2012
1. S.5 of the Partnership Act provides: Section5. 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.
2. Jurisprudentially, 'Status' means the legal character of belonging to a class of persons possessing rights, duties, liabilities or disabilities distinct and seperate from others. Eg. status ob being a minor, insolvent, married person etc.
3. S. 5 says that partnership arises out of contract or agreement between the parties and not because of status. In other words, members of Hindu Joint Family or Burmese Budhdhist couple are not ipso facto partners in the business unless there is a seperate agreement between each of them.
4. There is no bar for members of HUF etc to become partners but they should enter into agreement for the purpose.
ajay sethi
(Expert) 05 June 2012
well advised by mr rao
A. A. JOSE
(Expert) 05 June 2012
Nothing is left to be added over and above what have been well articulated by Dr.VN Rao.
CA Ayush Agrawal
(Expert) 15 March 2013
Every Aspect Has been Covered by Mr. rao.
Thanks Sir For Nice Explanation.
