THE INDIAN PARTNERSHIP ACT, 1932 (ACT NO. 9 OF 1932)
[8th April, 1932]
12. THE CONDUCT OF THE BUSINESS
Subject to contract between the partners—
a. every partner has a right to take part in the conduct of the business;
b. every partner is bound to attend diligently to his duties in the conduct of the business;
c. any difference arising as to ordinary matters connected with the business may be decided by a majority of the partners, and every partner shall have the right to express his opinion before the matter is decided, but no change may be made in the nature of the business without the consent of all the partners; and
d. every partner has a right to have access to and to inspect and copy any of the books of the firm.
13. MUTUAL RIGHTS AND LIABILITIES
Subject to contract between the partners—
a. a partner is not entitled to receive remuneration for taking part in the conduct of the business;
b. the partners are entitled to share equally in the profits earned, and shall contribute equally to the losses sustained by the firm;
c. where a partner is entitled to interest on the capital subscribed by him, such interest shall be payable only out of profits; (RIGHT)
d. a partner making, for the purposes of the business, any payment or advance beyond the amount of capital he has agreed to subscribe, is entitled to interest thereon at the rate of six per cent; (RIGHT)
e. the firm shall indemnify a partner in respect of payments made and liabilities incurred by him in the ordinary and proper conduct of the business, and in doing such act, in an emergency, for the purpose of protecting the firm from loss, as would be done by a person of ordinary prudence, in his own case, under similar circumstances; and
f. a partner shall indemnify the firm for any loss caused to it by his willful neglect in the conduct of the business of the firm.
14. THE PROPERTY OF THE FIRM
Subject to contract between the partners, the property of the firm includes all property and rights and interests in property originally brought into the stock of the firm, or acquired, by purchase or otherwise, by or for the firm, or for the purposes and in the course of the business of the firm, and includes also the goodwill of the business.
Unless the contrary intention appears, property and rights and interest in property acquired with money belonging to the firm are deemed to have been acquired for the firm.
15. APPLICATION OF THE PROPERTY OF THE FIRM
Subject to contract between the partners, the property of the firm shall be held and used by the partners exclusively for the purpose of the business.
16. PERSONAL PROFITS EARNED BY PARTNERS
Subject to contract between the partners,—
a. if a partner derives any profit for himself from any transaction of the firm, or from the use of the property or business connection of the firm or the firm name, he shall account for that profit and pay it to the firm,
b. if a partner carries on any business of the same nature as and competing with that of the firm, he shall account for and pay to the firm all profits made by him in that business.
17. RIGHTS AND DUTIES OF PARTNERS
Subject to contract between the partners,—
a. after a change in the firm where a change occurs in the constitution of a firm, the mutual rights and duties of the partners in the reconstituted firm remain the same as they were immediately before the change, as far as may be;
b. after the expiry of the term of the firm, and where a firm constituted for a fixed term continues to carry on business after the expiry of that term, the mutual rights and duties of the partners remain the same as they were before the expiry, so far as they may be consistent with the incidents of partnership at will; and
c. where additional undertakings are carried out where a firm constituted to carry out one or more adventures or undertakings carries out other adventures or undertakings, the mutual rights and duties of the parties in respect of the other adventures or undertakings are the same as those in respect of the original adventures or undertakings.
1. If the firm is dissolved or if the transferring partner ceases to be a partner, the transferee is entitled as against the remaining partners to receive the share of the assets of the firm to which the transferring partner is entitled, and, for the purpose of ascertaining that share, to an account as from the date of the dissolution.
