Corporate Law ( Commercial Law) Partnership Act 1932

The Indian Partnership Act was enacted in 1932. It came into force on 1^st October 1932 except provisions of Section 69. The Provisions of Section 69 came into force 1^st October 1933. The Act has not retrospective effect. It is known the name of The Indian Partnership Act, 1932. It extends to whole India (including Jammu & Kashmir from 31^st Oct. 2019 by J & K Reorganisation Act 2019.

The Act superseded the earlier law, which was contained in Chapter XI of the Indian Contract Act, 1872. The Partnership Act 1932 is not complete in itself. It is expressly mentioned that the provision of Indian Contract Act which is not repealed will be applicable on Partnership until and unless such provision is in contrary to any provision of Partnership Act, 1932.

Partnership is ruled by the Partnership Act 1932. It is also ruled by the general provision of the Indian Contract Act on such matters where the Partnership Act is silent.

It is a business organization where two or more persons agreed to join together to carry out the business for the purpose of earning the profits.

There are 8 Chapters, 74 Sections and 2 Schedules in Partnership Act, 1932.

Flow Chart of Partnership Act, 1932

Chapter No.	Chapter Name	Section No.
I	Priminary	1. Short title, extent and commencement 2. Definitions 3. Application of Provisions of Act 9 of 1872
II	The Nature of Partnership	4. Definition of partnership, partner, firm and firm name. 5. Partnership not created by status 6. Mode of determining existence of partnership 7. Partnership at will 8. Particular partnership
III	Relations of Partners to One Another	9. General duties of partners 10. Duty to indemnify for loss caused by fraud 11. Determination of rights and duties of partners by contract between the partners 12. The conduct of the business 13. Mutual rights and liabilities 14. The property of the firm 15. Application of the property of the firm 16. Personal profits named by partners 17. Rights and duties of partners
IV	Relation of Partners to Third Parties	18. Partners to be agent of the firms 19. Implied authority of partner as agent of the firm 20.Extension and restriction of partner’s implied authority. 21.Partner’s authority in an emergency 22. Mode of doing act to bind firm 23. Effect of admissions by a partner 24. Effect of notice to acting partner 25. Liability of a partner for acts of the firm 26. Liability of the firm for wrongful acts of a partner 27. Liability of firm for misapplication by partners 28. Holding out 29. Rights of transferee of a partner’s interest 30. Minors admitted to the benefits of partnership.
V	Incoming and Outgoing Partners	31. Introduction of a partner 32. Retirement of a partner 33. Expulsion of a partner 34. Insolvency a partner 35. Liability of estate of deceased partner 36. Rights of outgoing partner to carry on competing business 37.Right of outgoing partner in certain cases to share subsequent profits 38. Revocation of continuing guarantee by change in firm
VI	Dissolution of a Firm	39. Dissolution of firm 40. Dissolution by agreement 41. Compulsory dissolution 42. Dissolution on the happening of certain contingencies 43. Dissolution by notice of partnership at will 44. Dissolution by the Courts 45. Liability for acts of partners done after dissolution 46. Right of partners to have business wound up after 47. dissolution. Continuing authority of partners for purposes of winding up 48. Mode of settlement of accounts between partners 49. Payment of firm debts and of separate debts 50. Personal profits earned after dissolution 51. Return of premium on premature dissolution 52. Rights where partnership contract is rescinded for fraud or misrepresentation 53. Rights to restrain from use of firm name or firm property 54. Agreements in restraint of trade 55. Sale of good will after dissolution
VII	Registration of Firms	56. Power to exempt from application of this Chapter 57. Appointment of Registrar 58. Application of registration 59. Registration 60. Recording of alterations in firm name and principal place of business 61. Noting of closing and’opening of branches 62. Noting of changes in names and addresses of partners 63. Recording of changes in and dissolution of a firm 64. Rectification of mistakes 65. Amendment of Register by order of court 66. Inspection of Register and filed documents 67. Grant of copies 68. Rules of evidence 69. Effect of non- registration 70. Penalty for furnishing of false particulars 71. Power to make rules
VIII	Supplemental	72. Mode of giving public notice 73. [Repeals] 74. Saving

Section – 2 Definitions

(a) “An Act of a Firm means any act or omission by all the partners, or by any partner or agent of the firm which gives rise to a right enforceable by or against the firm”

(b) “Business includes every trade, occupation and profession”

(d) “Third party used in relation to a firm or to a partner therein means any person who is not a partner in the firm”

(e) “Expressions used but not defined in this Act and defined in the Indian Contract Act, 1872 (9 of 1872), shall have the meanings assigned to them in that Act.”

Unless There is anything repugnant in the subject or context,in the Act,

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Corporate Law ( Commercial Law) Partnership Act 1932

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