PARTNERSHIP ACT, 1932
Partnership Act, 1932, Section 14 - Partnership property - Property used for partnership purposes is necessarily not the partnership property - Property belonging to a partner does not become partnership property by being used for the purpose of partnership - There must be some evidence of an intention to treat the property as a part of the capital of the business - Where a partner brings certain property into the common stock as part of his capital, it becomes partnership property - Act has also specifically included the goodwill among the partners of the firm subject to any contract between the partners, in all accounts for determining the shares. (M/s.D.R.Associates Vs General Manager, East Coast Railways & Ors.) 2005(1) Civil Court Cases 328 (Orissa)
Partnership Act, 1932, Sections 16, 37 and 50 - Partnership firm - One of the partners died and the firm stood dissolved - New partnership firm constituted in which new partners introduced - Held, surviving partner is liable to render accounts till the date on which the firm stood dissolved. (Smt.Sarojini, LRs. of Deceased 1st defendant Vs Kumari Bhagyavathi & Ors.) 2005(3) Civil Court Cases 327 (
Partnership Act, 1932, Sections 20, 22 - Firm and its partners - Liability - A partnership firm has no independent entity of its own and all the liabilities against the firm or all acts done by any one of its partners for and on behalf of the firm shall bind all the other partners as well - Section 20 is an exception to the implied authority - Partners by contract between themselves extend or restrict the implied authority of any partner - However, 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 - Onus to prove that such authority of partner is restricted is upon the person who claims such a restriction. (State Bank of India Vs M/s.Simko Engineering Works)
Partnership Act, 1932, Section 24 - Partnership firm - Partner is an agent of the firm - Notice to agent tantamounts to the principles and vice versa - Notice to a principal is notice to all his agents and notice to an agent of matters connected with the agency is notice to his principal. (Ashutosh Vs State of
Partnership Act, 1932, Section 25 - Partnership firm - Liability of partners - It is joint and several - A creditor of the firm can recover the debt from any one or more of the partners - Each partner is liable as if the debt of the firm has been incurred on his personal liability. (Ashutosh Vs State of
Partnership Act, 1932, Sections 32(3), 72 - Partnership firm - Retiring partner - Public notice as required u/s 72 of the Act not given - Held, a retiring partner is liable for any subsequent act on behalf of the firm which would bind the firm until the public notice as prescribed by Section 72 is given. (Harihar Davey Vs Kamlesh Steel Enterprises & Ors.) 2005(3) Civil Court Cases 774 (
Partnership Act, 1932, Section 42 - Partnership - Dissolution and reconstitution - Two different legal concepts - Dissolution puts an end to the partnership, but reconstitution keeps it subsisting, though in another form - Dissolution followed by some of the erstwhile partners taking over the assets and liabilities of the dissolved partnership and forming themselves into a partnership is not reconstitution of the original partnership - Partnership formed after dissolution is a new partnership and not a reconstitution of the old partnership - A reconstitution of a firm denotes a structural alteration of the membership of the firm, by addition or reduction of members and an incidental redistribution of the shares of the partners. (P.N.Shanmugam & Anr. Vs P.D.Vadivelu & Anr.) 2006(4) Civil Court Cases 660 (A.P.)
Partnership Act, 1932, Section 44(d), Civil Procedure Code, 1908, Order 20 Rule 15 - Partnership at will - Court can dissolve the firm if meeting of partnership was never held after execution of the partnership deed in spite of repeated requests by plaintiff, managing partner did not show him the accounts and confidence between the partners i.e. plaintiff on the one hand and defendant on the other found lost. (P.N.Shanmugam & Anr. Vs P.D.Vadivelu & Anr.) 2006(4) Civil Court Cases 660 (A.P.)
Partnership Act, 1932, Section 44(d), Civil Procedure Code, 1908, Order 20 Rule 15 - Suit for rendition of accounts - Managing partner if stated in evidence that firm has been dissolved and fresh partnership is constituted, it amounts to dissolution by notice on the date of deposition - Court can grant relief of dissolution of firm even if plaintiff has not asked for it and order rendition of accounts prayed for. (P.N.Shanmugam & Anr. Vs P.D.Vadivelu & Anr.) 2006(4) Civil Court Cases 660 (A.P.)
Partnership Act, 1932, Section 69, 63 - Partnership firm - Registered - Inducting a new partner - Changes in the constitution of the Firm do not change registration once made - Fresh registration need not be applied and obtained - However, changes made have to be notified to the Registrar u/s 63(1) of the Act - Default made by firm in not so notifying is not of relevance in considering the question of the maintainability of the suit u/s 69(2) of the Act. (P.N.Shanmugam & Anr. Vs P.D.Vadivelu & Anr.) 2006(4) Civil Court Cases 660 (A.P.)
Partnership Act, 1932, Section 69 - Partner - Forcible breaking lock of shop of partnership firm and taking away certain articles lying therein - Suit for damages - Such suit is not a suit for enforcing right arising out of contract or for enforcing a right conferred by Partnership Act - Such suit is essentially a suit for damages for misconduct and is not barred by Section 69 of the Act. (Chandrayya Mutwayya Irabatti Vs Sidram Ganpat Ingale) 2006(1) Civil Court Cases 600 (
Partnership Act, 1932, Section 69 - Unregistered partnership firm - Suit by - Registration of firm during pendency of suit - Bar under Section 69 does not apply. (M/s Samyuktha Cotton Trading
Partnership Act, 1932, Section 69(2) - Partnership firm - Registration of firm after filing the suit - Cures the initial defect provided the bar of limitation does not come in - Even fresh suit on the same cause of action is permitted. (M/s. IBP Company & Anr. Vs M/s. Uday Singh Jeet Ram & Ors.) 2004(3) Civil Court Cases 699 (P&H)
