#THE INDIAN PARTNERSHIP ACT, 1932 
________ 

##ARRANGEMENT OF SECTIONS 
________ 

###CHAPTER I 

###PRELIMINARY 

SECTIONS 

1. Short title, extent and commencement. 
2. Definitions. 
3. Application of provisions of Act 9 of 1872. 

###CHAPTER 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. 

###CHAPTER III 

###RELATIONSOF 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. 
  Agreements in restraint of trade. 
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 earned by partners. 
17. Rights and duties of partners— 
  after a change in the firm, 
  after the expiry of the term of the firm, and 
  where additional undertakings are carried out. 

###CHAPTER IV 

###RELATIONS OF PARTNERS TO THIRD PARTIES 

18. Partner to be agent of the firm. 
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. 

###CHAPTER V 

###INCOMING AND OUTGOING PARTNERS 

31. Introduction of a partner. 
32. Retirement of a partner. 
33. Expulsion of a partner. 
34. Insolvency of a partner. 
35. Liability of estate of deceased partner. 
36. Rights of outgoing partner to carry on competing business. 
  Agreements in restraint of trade. 
37. Right of outgoing partner in certain cases to share subsequent profits. 
38. Revocation of continuing guarantee by change in firm. 

###CHAPTER VI 

###DISSOLUTION OF A FIRM 

39. Dissolution of a 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 Court. 
45. Liability for acts of partners done after dissolution. 
46. Right of partners to have business wound up after dissolution. 
47. 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. Right to restrain from use of firm name or firm property. 
54. Agreements in restraint of trade. 
55. Sale of goodwill after dissolution. 
  Rights of buyer and seller of goodwill. 
  Agreements in restraint of trade. 

###CHAPTER VII 

###REGISTRATION OF FIRMS 

56. Power to exempt from application of this Chapter. 
57. Appointment of Registrars. 
58. Application for 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. 
  Recording of withdrawal of a minor. 
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 false particulars. 
71. Power to make rules. 

###CHAPTER VIII 

###SUPPLEMENTAL 

72. Mode of giving public notice. 
73. [Repealed.]. 
74. Savings. 

  SCHEDULE I.—MAXIMUM FEES 
  SCHEDULE II.—[Repealed.]. 



#THE INDIAN PARTNERSHIP ACT, 1932 

##ACT NO. 9 OF 1932 

[8th April, 1932.] 

  An Act to define and amend the law relating to partnership. 

  WHEREAS it is expedient to define and amend the law relating to partnership; it  ishereby enacted as 
follows:— 

###CHAPTER I 

###PRELIMINARY 

1. **Short title, extent and commencement.**—(1) This Act may be called the Indian Partnership Act, 1932. 

(2) It extends to the whole of India [^3]***.

(3) It shall come into force on the 1st day of October, 1932, except section 69, which shall come into 
force on the 1st day of October, 1933. 

2. **Definitions.**—In this Act, unless there is anything repugnant in the subject or context,— 

  (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; 

  (c) “prescribed” means prescribed by rules made under this Act; 

  (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; and 

  (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. 

3. **Application of provisions of Act 9 of 1872.**—Theunrepealed  provisions  of  the  Indian  Contract 
Act, 1872 (9 of 1872), save in so far as they are inconsistent with the express provisions of this Act, shall 
continue to apply to firms. 

###STATE AMENDMENT 

**Goa, Daman and Diu**

  In exercise of the powers conferred by sub-section (2) of Section 3 of the Goa, Daman and Diu 
(Laws) No. 2 Regulation, 1963, the Lieutenant Governor hereby appoints the 15th March 1964, as the 
date on which the provisions of the Acts mentioned in the Schedule below shall come into force in 
the Union Territory of Goa, Daman and Diu. 

###SCHEDULE 

1. The Indian Partnership Act, 1932. 
     By order and in the name of the Lieutenant Governor of Goa, Daman and Diu. 

*[Published in the Official Gazette Series I No. 11 dated 12-3-1964] (w.e.f.* 22nd January 1964) 



[^3]. The words “except the State of Jammu and Kashmir” omitted by Act 34 of 2019, s. 95 and the Fifth Schedule (w.e.f. 31-10-2019). 



###CHAPTER II 

###THE NATURE OF PARTNERSHIP 

4. **Definition of “partnership”, “partner”, “firm” and “firm name”.**—“Partnership” is the relation 
between persons who have agreed to share the profits of a business carried on by all or any of them acting 
for all. 

  Persons who have entered into partnership with one another are called individually “partners” and 
collectively “a firm”, and the name under which their business is carried on is called the “firm name”. 

5. **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 

6. **Mode of determining existence of partnership.**—In determining whether a group of personsisor 
is not a firm, or whether a person is or is not a partner in a firm, regard shall be had to the real relation 
between the parties, as shown by all relevant facts taken together. 

  *Explanation 1.*—The sharing of profits or of gross returns arising from property by persons holding a 
joint or common interest in that property does not of itself make such persons partners. 

  *Explanation 2.*—The receipt by a person of a share of the profits of a business, or of a payment 
contingent upon the earning of profits or varying with the profits earned by a business, does not of itself 
make him a partner with the persons carrying on the business; 

  and, in particular, the receipt of such share or payment— 

     (a) by a lender of money to persons engaged or about to engage in any business, 

     (b) by a servant or agent as remuneration, 

     (c) by the widow or child of a deceased partner, as annuity, or 

     (d) by  a  previous  owner  or  part  owner  of  the  business,  as  consideration  for  the  sale  of  the 
goodwill or share thereof, 

does not of itself make the receiver a partner with the persons carrying on the business. 

7. **Partnership at will.**—Where  no  provision  is  made  by  contract  between  the  partners  for  the 
duration of their partnership or for the determination of their partnership, the partnership is “partnership at 
will”. 

8. **Particular partnership.**—A person may become a partner with another person in particular 
adventures or undertakings. 

###CHAPTER III 

###RELATIONS OF PARTNERS TO ONE ANOTHER 

9. **General duties of partners.**—Partners  are  bound  to  carry  on  the  business  of  the  firm  to  the 
greatest  common  advantage,  to  be  just  and  faithful  to  each  other,  and  to  render  true  accounts  and  full 
information of all things affecting the firm to any partner or his legal representative. 

10. **Duty to indemnify for loss caused by fraud.**—Everypartner shall indemnify  the  firm  for  any 
loss caused to it by his fraud in the conduct of the business of the firm. 

11. **Determination  of  rights  and  duties  of  partners  by  contract  between  the  partners. 
Agreements in restraint of trade.**—(1) Subject to the provisions of this Act, the mutual rights and duties 
of the partners of a firm may be determined by contract between the partners, and such contract may be 
expressed or may be implied by a course of dealing. 

  Such contract  may  be  varied  by  consent  of  all  the  partners,  and  such  consent  may  be  expressed  or 
may be implied by a course of dealing. 

(2) Notwithstanding anything contained in section 27 of the Indian Contract Act, 1872 (9 of 1872), 
such contracts may provide that a partner shall not carry on any business other than that of the firm while 
he is a partner. 

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; 

  (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. 
per annum; 

  (e) the  firm  shall  indemnify  a  partner  in  respect  of  payments  made  and  liabilities  incurred  by 
him— 

     (i) in the ordinary and proper conduct of the business, and 

     (ii) 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 wilful 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  interests  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 purposes of the business. 

16. **Personal profits earned by partners.**—Subject to contract between the partners,— 

  (a) if a partner derives any profits 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—after a change in the firm, after the expiry of the term of the 
firm,  and—where  additional  undertakings  are  carried  out.**—Subject  to  contract  between  the 
partners,— 

  (a) 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) 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 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  partners  in  respect  of  the  other 
adventures or undertakings are the same as those in respect of the original adventures or undertakings. 

###CHAPTER IV 

###RELATIONS OF PARTNERS TO THIRD PARTIES 

18. **Partner to be agent of the firm.**— Subject to the provisions of this Act, a partner is the agent of 
the firm for the purposes of the business of the firm. 

19. **Implied authority of partner as agent of the firm.**—(1) Subject to the provisions of section 22, 
the act of a partner which is done to carry on, in the usual way, business of the kind carried on by the 
firm, binds the firm. 

  The authority of a partner to bind the firm conferred by this section is called his “implied authority”. 

(2) In the absence of any usage or custom of trade to the contrary, the implied authority of a partner 
does not empower him to— 

  (a) submit a dispute relating to the business of the firm to arbitration, 

  (b) open a banking account on behalf of the firm in his own name, 

  (c) compromise or relinquish any claim or portion of a claim by the firm, 

  (d) withdraw a suit or proceeding filed on behalf of the firm, 

  (e) admit any liability in a suit or proceeding against the firm, 

  (f) acquire immovable property on behalf of the firm, 

  (h) transfer immovable property belonging to the firm, or 

  (g) enter into partnership on behalf of the firm. 

20. **Extension and restriction of partner's implied authority.**—The  partners  in  a  firm  may,  by 
contract between the partners, extend or restrict the implied authority of any partner. 

  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. 

21. **Partner’s authority in an emergency.**—A Partner has authority, in an emergency, to do all such 
acts for the purpose of protecting the firm from loss as would be done by a person of ordinary prudence, 
in his own case, acting under similar circumstances, and such acts bind the firm. 

22. **Mode of doing act to bind firm.**—In order to bind a firm, an act or instrument done or executed 
by a partner or other person on behalf of the firm shall be done or executed in the firm name, or in any 
other manner expressing or implying an intention to bind the firm. 

23. **Effect of admissions by a partner.**—An  admission  or  representation  made  by  a  partner 
concerning  the  affairs  of  the  firm  is  evidence  against  the  firm,  if  it  is  made  in  the  ordinary  course  of 
business. 

24. **Effect of notice to acting partner.**—Notice to a partner who habitually acts in the business of the 
firm of any matter relating to the affairs of the firm operates as notice to the firm, except in the case of a 
fraud on the firm committed by or with the consent of that partner. 

25. **Liability of a partner for acts of the firm.**—Every partner is liable, jointly with all the other 
partners and also severally, for all acts of the firm done while he is a partner. 

26. **Liability of the firm for wrongful acts of a partner.**—Where, by the wrongful act or omission 
of a partner acting in the ordinary course of the business of a firm, or with the authority of his partners, 
loss or injury is caused to any third party, or any penalty is incurred, the firm is liable therefor to the same 
extent as the partner. 

27. **Liability of firm for misapplication by partners.**—Where— 

  (a) a partner acting within his apparent authority receives money or property from a third party 
and misapplies it, or 

  (b) a  firm  in  the  course  of  its  business  receives  money  or  property  from  a  third  party,  and  the 
money or property is misapplied by any of the partners while it is in the custody of the firm, 

the firm is liable to make good the loss. 

28. **Holding out.**—(1) Anyone who by words spoken or written or by conduct represents himself, or 
knowingly permits himself to be represented, to be a partner in a firm, is liable as a partner in that firm to 
anyone  who  has  on  the  faith  of  any  such  representation  given  credit  to  the  firm,  whether  the  person 
representing  himself  or  represented  to  be  a  partner  does  or  does  not  know  that  the  representation  has 
reached the person so giving credit. 

(2) Where after a partner’s death the business is continued in the old firm name, the continued use of 
that name or of the deceased partner’s name as a part thereof shall not itself make his legal representative 
or his estate liable for any act of the firm done after his death. 

29. **Rights of transferee of a partner’s interest.**—(1) A transfer by a partner of his interest in the 
firm,  either  absolute  or  by  mortgage,  or  by  the  creation  by  him  of  a  charge  on  such  interest,  does  not 
entitle the transferee, during the continuance of the firm, to interfere in the conduct of the business, or to 
require accounts, or to inspect the books of the firm, but entitles the transferee only to receive the share of 
profits of the transferring partner, and the transferee shall accept the account of profits agreed to by the 
partners. 

(2) 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  assetsof  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. 

30. **Minors admitted to the benefits of partnership.**—(1) A person who is a minor according to the 
law to which he is subject may not be a partner in a firm, but, with the consent of all the partners for the 
time being, he may be admitted to the benefits of partnership. 

(2) Such  minor  has  a  right  to  such  share  of  the  property  and  of  the  profits  of  the  firm  as  may  be 
agreed upon, and he may have access to and inspect and copy any of the accounts of the firm. 

(3) Such minor’s share is liable for the acts of the firm, but the minor is not personally liable for any 
such act. 

(4) Such minor may not sue the partners for an account or payment of his share of the property or 
profits of the firm, save when severing his connection with the firm, and in such case the amount of his 
share shall be determined by a valuation made as far as possible in accordance with the rules contained in 
section 48: 

  Provided that all the partners acting together or any partner entitled to dissolve the firm upon notice to 
other partners may elect in such suit to dissolve the firm, and thereupon the Court shall proceed with the 
suit as one for dissolution and for settling accounts between the partners, and the amount of the share of 
the minor shall be determined along with the shares of the partners. 

(5) At any time within six months of his attaining majority, or of his obtaining knowledge that he had 
been admitted to the benefits of partnership, whichever date is later, such person may give public notice 
that he has elected to become or that he has elected not to become a partner in the firm, and such notice 
shall determine his position as regards the firm: 

  Provided that, if he fails to give such notice, he shall become a partner in the firm on the expiry of the 
said six months. 

(6) Where any person has been admitted as a minor to the benefits of partnership in a firm, the burden 
of proving the fact that such person had no knowledge of such admission until a particular date after the 
expiry of six months of his attaining majority shall lie on the persons asserting that fact. 

(7) Where such person becomes a partner,— 

  (a) his rights and liabilities as a minor continue up to the date on which he becomes a partner, but 
he also becomes personally liable to third parties for all acts of the firm done since he was admitted to 
the benefits of partnership, and 

  (b) his share in the property and profits of the firm shall be the share to which he was entitled as a 
minor. 

(8) Where such person elects not to become a partner, — 

  (a) his rights and liabilities shall continue to be those of a minor under this section up to the date 
on which he gives public notice, 

  (b) his share shall not be liable for any acts of the firm done after the date of the notice, 
and 

  (c) he shall be entitled to sue the partners for his share of the property and profits in accordance 
with sub-section (4). 

(9) Nothing in sub-sections (7) and (8)shall affect the provisions of section 28. 

###CHAPTER V 

###INCOMING AND OUTGOING PARTNERS 

31. **Introduction of a partner.**—(1) Subject to contract between the partners and to the provisions of 
section 30, no person shall be introduced as a partner into a firm without the consent of all the existing 
partners. 

(2) Subject to the provisions of section 30, a person who is introduced as a partner into a firm does not 
thereby become liable for any act of the firm done before he became a partner. 

32. **Retirement of a partner.**—(1) A partner may retire— 

  (a) with the consent of all the other partners, 

  (b) in accordance with an express agreement by the partners,  or 

  (c) where  the  partnership  is  at  will,  by  giving  notice  in  writing  to  all  the  other  partners  of  his 
intention to retire. 

(2) A retiring partner may be discharged from any liability to any third party for acts of the firm done 
before  his  retirement  by  an  agreement  made  by  him  with  such  third  party  and  the  partners  of  the 
reconstituted firm, and such agreement may be implied by a course of dealing between such third party 
and the reconstituted firm after he had knowledge of the retirement. 

(3) Notwithstanding  the  retirement  of  a  partner  from  a  firm,  he  and  the  partners  continue  to 
be liable as partners to third parties for any act done by any of them which would have been an 
act of the firm if done before the retirement, until public notice is given of the retirement: 

  Provided that a retired partner is not liable to any third party who deals with the firm without knowing 
that he was a partner. 

(4) Notices  under  sub-section  (3)  may  be  given  by  the  retired  partner  or  by  any  partner  of  the 
reconstituted firm. 

33. **Expulsion of a partner.**—(1) Apartner may not be expelled from a firm by any majority of the 
partners, save in the exercise in good faith of 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. 

34. **Insolvency of a partner.**—(1) Where a partner in a firm is adjudicated an insolvent he ceases 
to  be  a  partner  on  the  date  on  which  the  order  of  adjudication  is  made,  whether  or  not  th e  firm  is 
thereby dissolved. 

(2) Where under a contract between the partners the firm is not dissolved by the adjudication of a 
partner as an insolvent, the estate of a partner so adjudicated is not liable for any act of the firm and the 
firm is not liable for any act of the insolvent, done after the date on which the order of adjudication is 
made. 

35. **Liability of estate of deceased partner.** — Where under a contract between the partners the firm 
is not dissolved by the death of a partner, the estate of a deceased partner is not liable for any act of the 
firm done after his death. 

36. **Rights of outgoing partner to carry on competing business. Agreements  in  restraint  of 
trade.**—(1)  An  outgoing  partner  may  carry  on  a  business  competing  with  that  of  the  firm  and  he  may 
advertise such business, but, subject to contract to the contrary, he may not— 

  (a) use the firm name, 

  (b) represent himself as carrying on the business of the firm, or 

  (c) solicit the custom of persons who were dealing with the firm before he ceased to be a partner. 

(2)  A  partner  may  make  an  agreement  with  his  partners  that  on ceasing  to  be  a  partner  he  will  not 
carry on any business similar to that of the firm within a specified period or within specified local limits; 
and, notwithstanding anything contained in section 27 of the Indian Contract Act, 1872 (9 of 1872), such 
agreement shall be valid if the restrictions imposed are reasonable. 

37. **Right of outgoing partner in certain cases to share subsequent profits.**—Where any member 
of a firm has died or otherwise ceased to be a partner, and the surviving or continuing partners carry on 
the business of the firm with the property of the firm without any final settlement of accounts as between 
them and the outgoing partner or his estate, then, in the absence of a contract to the contrary, the outgoing 
partner or his estate is entitled at the option of himself or his representatives to such share of the profits 
made since he ceased to be a partner as may be attributable to the use of his share of the property of the 
firm or to interest at the rate of six per cent. per annum on the amount of his share in the property of the 
firm: 

  Provided  that  whereby  contract  between  the  partners  an  option  is  given  to  surviving  or  continuing 
partners to purchase the interest of a deceased or outgoing partner, and that option is duly exercised, the 
estate of the deceased partner, or the outgoing partner or his estate, as the case may be, is not entitled to 
any further or other share of profits; but if any partner assuming to act in exercise of the option does not 
in  all  material  respects  comply  with  the  terms  thereof,  he  is  liable  to  account  under  the  foregoing 
provisions of this section. 

38. **Revocation of continuing guarantee by change in firm.**—A continuing guarantee given 
to a firm, or to a third party in respect of the transactions of a firm, is, in the absence of agreement to the 
contrary, revoked as to future transactions from the date of any change in the constitution of the firm. 

###CHAPTER VI 

###DISSOLUTION OF A FIRM 

39. **Dissolution of a firm.**—The dissolution of partnership between all the partners of a firm is called 
the “dissolution of the firm”. 

40. **Dissolution by agreement.**—A firm may be dissolved with the consent of all the partners or in 
accordance with a contract between the partners. 

41. **Compulsory dissolution.**—A firm is dissolved— 

  (a) by the adjudication of all the partners or of all the partners but one as insolvent, or 

  (b) by  the  happening  of  any  event  which  makes  it  unlawful  for  the  business  of  the  firm  to  be 
carried on or for the partners to carry it on in partnership : 

  Provided that, where more than one separate adventure or undertaking is carried on by the firm, the 
illegality  of  one  or  more  shall  not  of  itself  cause  the  dissolution  of  the  firm  in  respect  of  its  lawful 
adventures and undertakings. 

42. **Dissolution on the happening of certain contingencies.**—Subject to  contract  between  the 
partners a firm is dissolved— 

  (a) if constituted for a fixed term, by the expiry of that term; 

  (b) if constituted to carry out one or more adventures or undertakings, by the completion thereof; 

  (c) by the death of a partner; and 

  (d) by the adjudication of a partner as an insolvent. 

43. **Dissolution by notice of partnership at will.**—(1) Where the partnership is at will, the firm may 
be dissolved by any partner giving notice in writing to all the other partners of his intention to dissolve the 
firm. 

(2) The firm is dissolved as from the date mentioned in the notice as the date of dissolution or, if no 
date is so mentioned, as from the date of the communication of the notice. 

44. **Dissolution by the Court.**—At the suit of a partner, the Court may dissolve a firm on any of the 
following grounds, namely:— 

  (a) that a partner has become of unsound mind, in which case the suit may be brought as well by 
the next friend of the partner who has become of unsound mind as by any other partner; 

  (b) that a partner, other than the partner suing, has become in any way permanently incapable of 
performing his duties as partner; 

  (c) that  a  partner,  other  than  the  partner  suing,  is  guilty  of  conduct  which  is  likely  to  affect 
prejudicially the carrying on of the business, regard being had to the nature of the business; 

  (d) that  a  partner,  other  than  the  partner  suing,  wilfully  or  persistently  commits  breach  of 
agreements  relating  to  the  management  of  the  affairs  of  the  firm  or  the  conduct  of  its  business,  or 
otherwise so conducts himself in matters relating to the business that it is not reasonably practicable 
for the other partners to carry on the business in partnership with hint; 

  (e) that a partner, other than the partner suing, has in any way transferred the whole of his interest 
in the firm to a third party, or has allowed his share to be charged under the provisions of rule 49 of 
Order XXI of the First Schedule to the Code of Civil Procedure, 1908 (5 of 1908), or has allowed it to 
be  sold  in  the  recovery  of  arrears  of  land-revenue  or  of  any  dues  recoverable  as  arrears  of  land-
revenue due by the partner; 

  (f) that the business of the firm cannot be carried on save at a loss; or 

  (g) on any ground which renders it just and equitable that the firm should be dissolved. 

45. **Liability for acts of partners done after dissolution.**—(1) Notwithstanding the dissolution of a 
firm,  the  partners  continue  to  be  liable as such to third parties for any act done by any of them which 
would  have  been  an  act  of  the  firm  if  done  before  the  dissolution,  until  public  notice  is  given  of  the 
dissolution: 

  Provided that the estate of a partner who dies, or who is adjudicated an insolvent, or of a partner who, 
not having been known to the person dealing with the firm to be  a partner, retires from the firm, is not 
liable under this section for acts done after the date on which he ceases to be a partner. 

(2) Notices under sub-section (1) may be given by any partner. 

46. **Right of partners to have business wound up after dissolution.**—On the dissolution of a 
firm  every  partner  or  his  representative  is  entitled,  as  against  all  the  other  partners  or  their 
representatives, to have the property of the firm applied in payment of the debts and liabilities of the 
firm,  and  to  have  the  surplus  distributed  among  the  partners  or  their  representatives  according  to  their 
rights. 

47. **Continuing authority of partners for purposes of winding up.**—After the dissolution of a firm 
the authority of each partner to bind the firm, and the other mutual rights and obligations of the partners, 
continue notwithstanding the dissolution, so far as may be necessary to wind up the affairs of the firm and 
to complete transactions begun but unfinished at the time of the dissolution, but not otherwise: 

  Provided that the firm is in no case bound by the acts of a partner who has been adjudicated insolvent; 
but  this  proviso  does  not  affect  the  liability  of  any  person  who  has  after  the  adjudication  represented 
himself or knowingly permitted himself to be represented as a partner of the insolvent. 

48. **Mode of settlement of accounts between partners.** —In  settling  the  accounts  of  a  firm  after 
dissolution, the following rules shall, subject to agreement by the partners, be observed: — 

  (a) Losses, including deficiencies of capital, shall be paid first out of profits, next out of capital, 
and, lastly, if necessary, by the partners individually in the proportions in which they were entitled to 
share profits. 

  (b) The assets of the firm, including any sums contributed by the partners to make up deficiencies 
of capital, shall be applied in the following manner and order:— 

     (i) in paying the debts of the firm to third parties; 

     (ii) in  paying  to  each  partner  rateably  what  is  due  to  him  from  the  firm  for  advances  as 
distinguished from capital; 

     (iii) in paying to each partner rateably what is due to him on account of capital; and 

     (iv) the residue, if any, shall be divided among the partners in the proportions in which they 
were entitled to share profits. 

49. **Payment of firm debts and of separate debts.**—Where there are joint debts due from the firm, 
and also separate debts due from any partner, the property of the firm shall be applied in the first instance 
in payment of the debts of the firm, and, if there is any surplus, then the share of each partner shall be 
applied  in  payment  of  his  separate  debts  or  paid  to  him.  The  separate  property  of  any  partner  shall  be 
applied first, in the payment of his separate debts, and the surplus (if any) in the payment of the debts of 
the firm. 

50. **Personal profits earned after dissolution.**—Subject  to  contract  between  the  partners,  the 
provisions  of  clause  (a)  of  section  16  shall  apply  to  transactions  by  any  surviving  partner  or  by  the 
representatives of a deceased partner, undertaken after the firm is dissolved on account of the death of a 
partner and before its affairs have been completely wound up: 

  Provided that where any partner or his representative has bought the goodwill of the firm, nothing in 
this section shall affect his right to use the firm name. 

51. **Return of premium on premature dissolution.** —Where  a  partner  has  paid  a  premium  on 
entering  into  partnership  for  a  fixed  term,  and  the  firm  is  dissolved  before  the  expiration  of  that  term 
otherwise than by the death of a partner, he shall be entitled to repayment of the premium or of such part 
thereof as may be reasonable, regard being had to the terms upon which he became a partner and to the 
length of time during which he was a partner, unless— 

  (a) the dissolution is mainly due to his own misconduct, or 

  (b) the dissolution is in pursuance of an agreement containing no provision for the return of the 
premium or any part of it. 

52. **Rights where partnership contract is rescinded for fraud or misrepresentation.**—Where  a 
contract  creating  partnership  is  rescinded  on  the  ground  of  the  fraud  or  misrepresentationofany  of  the 
parties thereto, the party entitled to rescind is, without prejudice to any other right, entitled— 

  (a) to a lien on, or a right of retention of, the surplus or the assets of the firm remaining after the 
debts of the firm have been paid, for any sum paid by him for the purchase of a share in the firm and 
for any capital contributed by him; 

  (b) to rank as a creditor of the firm in respect of any payment made by him towards the debts of 
the firm; and 

  (c) to be indemnified by the partner or partners guilty of the fraud or misrepresentation against all 
the debts of the firm. 

53. **Right to restrain from use of firm name or firm property.**—After a firm is dissolved, every 
partner  or  his  representative  may,  in  the  absence  of  a  contract  between  the  partners  to  the  contrary, 
restrain any other partner or his representative from  carrying on a similar business in the firm name or 
from  using  any  of  the  property  of  the  firm  for  his  own  benefit,  until  the  affairs  of  the  firm  have  been 
completely wound up: 

  Provided that where any partner or his representative has bought the goodwill of the firm, nothing in 
this section shall affect his right to use the firm name. 

54. **Agreements in restraint of trade.**—Partners may, upon or in anticipation of the dissolution of 
the firm, make an agreement that some or all of them will not carry on a business similar to that of the 
firm within a specified period or within specified local limits; and notwithstanding anything contained in 
section 27 of the Indian Contract Act, 1872 (9 of 1872), such agreement shall be valid if the restrictions 
imposed are reasonable. 

55. **Sale of goodwill after dissolution. Rights  of  buyer  and  seller  of  goodwill.  Agreements  in 
restraint of trade.**—(1) In settling the accounts of a firm after dissolution, the goodwill shall, subject to 
contract between the partners, be included in the assets, and it may be sold either separately or along with 
other property of the firm. 

(2) Where  the  goodwill  of  a  firm  is  sold  after  dissolution,  a  partner  may  carry  on  a  business 
competing with that of the buyer and he may advertise such business, but, subject to agreement between 
him and the buyer, he may not— 

  (a) use the firm name, 

  (c) represent himself as carrying on the business of the firm, or 

  (c) solicit the custom of persons who were dealing with the firm before its dissolution. 

(3) Any partner may, upon the sale of the goodwill of a firm, make an agreement with the buyer that 
such partner will not carry on any business similar to that of the firm within a specified period or within 
specified local limits, and, notwithstanding anything contained in section 27 of the Indian Contract Act, 
1872 (9 of 1872), such agreement shall be valid if the restrictions imposed are reasonable. 

###CHAPTER VII 

###REGISTRATION OF FIRMS 

56. **Power to exempt from application of this Chapter.**—The State Government of any State 
may, by notification in the Official Gazette, direct that the provisions of this Chapter shall not apply to 
that State or to any part thereof specified in the notification. 

57. **Appointment of Registrars.**—(1) The State Government may appoint Registrars of Firms for the 
purposes of this Act, and may define the areas within which they shall exercise their powers and perform 
their duties. 

(2) Every Registrar shall be deemed to be a public servant within the meaning of section 21 of the 
Indian Penal Code (45 of 1860). 

###STATE AMENDMENT 

**Goa, Daman and Diu**

  In exercise of power conferred under sub-section (1) of Section 57 of the **Indian Partnership 
Act, 1932 (IX of 1932)** (hereinafter referred to as the Act), the Government of Goa, in supersession 
of all earlier Notifications which may have been issued in the context and which may render to be 
contradictory  to  present  Notification  hereby  appoints  the  Officers  shown  in  Column  No.  II  of  the 
table below as Registrar of Firms who shall exercise, perform and discharge the powers, functions 
and duties of the Registrar under the Act within the jurisdiction mentioned in Column No. III of the 
table below:– 

Sr. 
No. 
I 

1. 
2. 
3. 
4. 
5. 
6. 
7. 
8. 
9. 
10. 
11. 
12. 

Designation of Officer 

Jurisdiction 

II 

Civil Registrar-cum-Sub-Registrar, Pernem 
Jt. Civil Registrar-cum-Sub-Registrar-I, Bardez 
Civil Registrar-cum-Sub-Registrar, Bicholim 
Civil Registrar-cum-Sub-Registrar, Sattari 
Jt. Civil Registrar-cum-Sub-Registrar-I, Tiswadi 
Jt. Civil Registrar-cum-Sub-Registrar-I, Ponda 
Civil Registrar-cum-Sub-Registrar, Dharbandora 
Jt. Civil Registrar-cum-Sub-Registrar-I, Mormugao 
Jt. Civil Registrar-cum-Sub-Registrar-I, Salcete 
Civil Registrar-cum-Sub-Registrar, Quepem 
Civil Registrar-cum-Sub-Registrar, Sanguem 
Civil Registrar-cum-Sub-Registrar, Canacona 

III 

Pernem Taluka 
Bardez Taluka 
Bicholim Taluka 
Sattari Taluka 
Tiswadi Taluka 
Ponda Taluka 
Dharbandora Taluka 
Mormugao Taluka 
Salcete Taluka 
Quepem Taluka 
Sanguem Taluka 
Canacona Taluka 

This Notification shall come into force with immediate effect. 

(Published  in  the  Official  Gazette  Series  I  No.  49(Extraordinary)  dated  7-3-2019)  (w.e.f.  8/42/2018-
LD(Estt)/469 dated 6-03-2019) 

58.  Application  for  registration.—(1)  The  registration  of  a  firm  may  be  effected  at  any  time  by 
sending by post or delivering to the Registrar of the area in which any place of business of the firm is 
situated or proposed to be situated, a statement in the prescribed form and accompanied by the prescribed 
fee, stating— 

(a) the firm name, 

(b) the place or principal place of business of the firm, 

(c) the names of any other places where the firm carries on business, 

(d) the date when each partner joined the firm, 

(e) the names in full and permanent addresses of the partners, and 

(f) the duration of the firm. 

The statement shall be signed by all the partners, or by their agents specially authorised in thisbehalf. 

(2) Each person signing the statement shall also verify it in the manner prescribed. 

(3) A firm name shall not contain any of the following words, namely:— 

14 

 
 
 
“Crown”,  “Emperor”,  “Empress”,  “Empire”,  “Imperial”,  “King”,  “Queen”,  “Royal”,  orwords 
expressing  or  implying  the  sanction,  approval  or  patronage  of1***  Government 2***,except 3[when 
the State Government] signifies 4[its] consent to the use of such words as part of the firm name by 
order in writing 5***. 

Goa, Daman and Diu  

STATE AMENDMENT 

The  Government  of  Goa  is  hereby  pleased  to  levy  a  non-refundable  processing  fee  of  Rs. 
1,000/-  (Rupees  one  thousand  only)  for  processing  the  documents  for  registration  of  Partnership 
Firm under the Indian Partnership Act, 1932 (Central Act 9 of 1932). 

This Order shall come into force with effect from the 1st day of April, 2017. 

(Published  in  the  Official  Gazette  Series  I  No.  52  (Extraordinary-2)  dated  31-3-2017)  (w.e.f.  8-5-2017-
LD(Estt.) (C)/407 dated 31-3-2017) 

Uttarakhand 

Substitution  of  section  58.—In  the  Indian  Partnership  Act,  1932,  (hereinafter  referred  to  as  the 

Principal Act) section 58 shall be substituted as follows, namely:- 

58. Application for registration.—(1) The registration of a firm may be effected at any time by 
uploading  on  the  website  following  statement  in  the  prescribed  online  form  and  accompanied  with 
prescribed fees to the Registrar of the area in which any place of business of the firm is situated or 
proposed to be situated, stating.— 

(a) the firm name, 

(b) the place or principal place of business of the firm, 

(c) the names of any other places where the firm carries on business,  

(d) the date when each partner joined the firm, 

(e) the names in full and permanent addresses of the partners, and  

(f) the duration of the film. 

The statement shall be digitally signed by all the partners or by their agents specially authorized 

in this behalf. 

(2)  The  applicant,  signing  the  statement  shall  also  upload  to  the  website,  verifying  the  statement 
recorded in the  online format  mentioned  in  sub-section  (1),  verifying  it  in  the affidavit  certified  by  the 
Notary on the non-judicial stamp paper of Rs. 10/. 

(3) The desired enclosed shall also be uploaded on website, by the applicant. 

(4)  A  firm  name  shall  not  contain  the  word  Union,  State,  Land  Mortgage,  Land  development, 
Cooperative, Gandhi, Reserve Bank or any of the words expressing or implying the sanction, approval or 
patronage  of  Government,  except  when  the  State  Government  signifies  its  consent  to  the  use  of  such 
words as part of the firm name by order in writing. 

(5) The prescribed fee of registration shall be submitted online after the online approval given by the 

Registrar. 

1. The words “the Crown or the Central Government or any Provincial” omitted by the A. O. 1950. The words “the 

CentralGovernment or any Provincial Government or the Crown Representative” were subs. by the A. O. 1937 for “the G. of I. 
or a L. G.” 

2. The words “or the Crown Representative” omitted by the A.O. 1948. 
3. Subs. by the A.O. 1937, for “when the G.G. in C.”.  
4. Subs.ibid. for “his” 
5. The words “under the hand of one of the Secretaries to the G. of I.” omitted, ibid. 

15 

 
 
                                                      
 
(6) After submitting the prescribed registration fee the digitally signed registration certificate may be 

downloaded from the website by the applicant. 

[Vide Uttarakhand Act 5 of 2019, s. 2] 

Rajasthan 

Amendment  of  section  58,  Central  Act  IX  of  1932.—For  sub-section  (3)  of section  58  of  the  Indian 
Partnership Act, 1932 (Central Act IX of 1932), hereinafter referred to as the principal Act, the  following 
sub-sections shall be substituted, namely :- 

"(3)  No  firm  shall  be  registered  by  a  name  which,  in  the  opinion  of  the  State  Government,  is 

undesirable. 

(4)  Except  with  the  previous  sanction  in  writing  of  the  State  Government,  no  firm  shall  be 

registered by a name which contains any of the following words, namely:- 

(a) 'Union', 'State', 'President', 'Republic' or any word expressing or implying the sanction, 

approval or patronage of the Central or any State  Government ; and 

(b)  'Municipal',  'Chartered'  or  any  word  which  suggests  or  is  calculated  to  suggest 

connection with any municipality or other local authority: 

Provided that nothing in this sub-section shall apply to any firm registered before the date of the 

commencement of the Indian Partnership (Rajasthan Amendment) Act, 1971." 

[Vide Rajasthan Act 10 of 1971, s. 2] 

59. Registration.—Where the Registrar is satisfied that the provisions of section 58 have been duly 
complied  with,  he shall  record  an  entry  of  the  statement  in  a  register  called  the  Register  of  Firms,  and 
shall file the statement. 

Karnataka 

STATE AMENDMENTS 

Amendment of section 59A.—In section 59A of the Indian Partnership Act, 1932 (Central Act IX of 
1932), in sub-section (1), for the words “by reason of the reorganization of States”, the words, figures and 
brackets “by reason of the addition of the Bellary District to the State of Mysore under the Andhra State 
Act, 1953 (Central Act XXX of 1953), or of the reorganization of States under the States Reorganisation 
Act, 1956 (Central Act 37 of 1956)” shall be substituted. 

[Vide Karnataka Act 19 of 1961, s. 2] 

Maharashtra 

Amendment of section 59A-1 of IX of 1932.-In section 59A-1 of the Indian Partnership Act, 1932 
(IX of 1932), in its application to the State of Maharashtra (hereinafter referred to as "the principal Act"), 
for the words "one hundred rupees" the words "one thousand rupees" shall be substituted. 

[Vide Maharashtra Act 16 of 2018, s. 2] 

Goa, Daman and Diu  

As  required  under  the  Ease  of  Doing  Business,  Government  of  Goa,  Law  (Establishment) 
Division and Registration Department hereby mandates “Registration of Partnership Firms” shall be 
accepted and processed Online only without requiring the applicant to submit a physical copy of the 
application  or  associated  supporting  documentation  including  executed  deed  of  Partnership.  The 
department staff (all Sub-Registrar Officers) are hereby instructed to process application through the 
online mode only. 

Further,  it  is  also  mandated  that  all  queries  against  applicants,  applications  (if  any)  should  be 

submitted to the applicants only once and within 7 days of receipt of the application. 

This Notification shall come into force with effect from 8th of March, 2019. 

16 

 
 
This issues in supersession to earlier Notification of even number dated 11-12-2018 and all the 
initiated  under  Online  Partnership  Registration  Web 

registration 

Partnership  Firms 
Application/Website (https://partnership.goa.gov.in). 

(Published  in  the  Official  Gazette  Series  I  No.  49(Extraordinary)  dated  7-3-2019)  (w.e.f.  8/8/2018-
LD(Estt)/470 dated 7th March 2019.) 

60.  Recording  of  alterations  in  firm  name  and  principal  place  of  business.—(1)  When  an 
alteration  is  made  in the firm  name  or  in the location  of  the  principal  place  of business of  a registered 
firm,  a  statement  may  be  sent  to  the  Registrar  accompanied  by  the  prescribed  fee,  specifying  the 
alteration, and signed and verified in the manner required under section 58. 

(2)  When  the  Registrar  is  satisfied  that  the  provisions  of  sub-section  (1)  have  been  duly  complied 
with,  he  shall  amend  the  entry  relating  to  the  firm  in  the  Register  of  Firms  in  accordance  with  the 
statement, and shall file it along with the statement relating to the firm filed under section 59. 

61. Noting of closing and opening of branches.—When a registered firm discontinues business at 
any place or begins to carry or business at any place, such place not being its principal place of business, 
any partner or agent of the firm may send intimation thereof to the Registrar, who shall make a note of 
such intimation in the entry relating to the firm in the Register of Firms, and shall file the intimation along 
with the statement relating to the firm filed under section 59. 

62. Noting of changes in names and addresses of partners.—When anypartner in a registered firm 
alters his name or permanent address, an intimation of the alteration may be sent by any partner or agent 
of the firm to the Registrar, who shall deal with it in the manner provided in section 61. 

63. Recording of changes in and dissolution of a firm. Recording of withdrawal of a minor.—(1) 
When  a  change  occurs  in  the  constitution  of  a  registered  firm  any  incoming,  continuing  or 
outgoingpartner,  and  when  a  registered  firm  is  dissolved  any  person  who  was  a  partner  immediately 
before the dissolution, or the agent of any such partner or person specially authorised in this behalf, may 
give notice to the Registrar of such change or dissolution, specifying the date thereof; and the Registrar 
shall make a record of the notice in theentry relating to the firm in the Register of Firms, and shall file the 
notice along with the statement relating to the firm filed under section 59. 

(2) When a minor who has been admitted to the benefits of partnership in a firm attains majority and 
elects  to  become  or  not  to  become  a  partner,  and  the  firm  is  then  a  registered  firm,  he,  or  his  agent 
specially  authorised  in  this  behalf,  may  give  notice  to  the  Registrar  that  he  has  or  has  not  become  a 
partner, and the Registrar shall deal with the notice in the manner provided in sub-section (1) 

64. Rectification of mistakes.—(1) The Registrar shill have power at all times to rectify any mistake 
in  order  to  bring  the  entry  in  the  Register  of  Firms  relating  to  any  firm  into  conformity  with  the 
documents relating to that firm filed under this Chapter. 

(2)  On  application  made  by  all  the  parties  who  have  signed  any  document  relating  to  a  firm  filed 
under  this  Chapter,  the  Registrar  may  rectify  any  mistake  in  such  document  or  in  the  record  or  note 
thereof made in the Register of Firms. 

65.  Amendment  of  Register  by  order  of  Court.—A  Court  deciding  any  matter  relating  to  a 
registered  firm  may  direct that  the  Registrar  shall  make  any  amendment  in  the entry  in the  Register  of 
Firms relating to such firm which is consequential upon its decision; and the Registrar shall amend the 
entry accordingly. 

66.  Inspection  of  Register  and  filed  documents.—(1)  The  Register  of  Firms  shall  be  open  to 

inspection by any person on payment of such fee as may be prescribed. 

(2)  All  statements,  notices  and  intimations  filed  under  this  Chapter  shall  be  open  to  inspection, 

subject to such conditions and on payment of such fee as may be prescribed. 

67. Grant of copies.—The Registrar shall on application furnish to any person, on payment of such 
fee as may be prescribed, a copy, certified under his hand, of any entry or portion thereof in the Register 
of Firms. 

17 

 
 
 
 
Uttarakhand 

STATE AMENDMENT 

Substituted of section 67.—In Principal Act, section 67 shall be substituted as follow, namely:-- 

67.  Grant  of  copies.—The  Registrar  shall  on  online  application  furnish  to  any  person,  on 
payment of such fee as may be prescribed , a copy digitally certified under his hand of any entry or 
portion thereof in the register of firms. 

[Vide Uttarakhand Act 5 of 2019, s. 3] 

68. Rules of evidence.—(1) Any statement, intimation or notice recorded or noted in the Register of 
Firms shall, as against any person by whom or on whose behalf such statement, intimation or notice was 
signed, be conclusive proof of any fact therein stated. 

(2) A certified copy of an entry relating to a firm in the Register of Firms may be produced in proof 
of  the  fact  of  the  registration  of  such  firm,  and  of  the  contents  of  any  statement,  intimation  or  notice 
recorded or noted therein. 

Uttarakhand 

STATE AMENDMENT 

Amendment  of  section  68.—In  Principal  Act,  sub-section (1)  of  section  68  shall  be substituted as 

follows, namely:-- 

68. Rules of Evidence:--(1) Any statement, intimation or notice recorded or noted in the register 
of  Firms  shall,  as  against  any  person  by  whom  or  on  whose  behalf  such  statement,  intimation  or 
notice was digitally signed, be conclusive proof of any fact therein stated. 

[Vide Uttarakhand Act 5 of 2019, s. 4] 

69. Effect of non-registration.—(1) No suit to enforce a right arising from a contract or conferred by 
this Act shall be institutes in any Court by or on behalf of any person suing as a partner in a firm against 
the firm or any person alleged to be or to have been a partner in the firm unless the firm is registered and 
the person suing is or has been shown in the Register of Firms as a partner in the firm. 

(2) No suit to enforce a tight arising from a contract shall be instituted in any Court by or on behalf of 
a firm against any third party unless the firm is registered and the persons suing are or have been shown 
in the Register of Firms as partners in the firm. 

(3) The provisions of sub-sections (1) and (2) shall apply also to a claim of set-off or other proceeding 

to enforce a right arising from a contract, but shall not affect—  

(a) the enforcement of any right to sue for the dissolution of a firm or for accounts of a dissolved 

firm, or a ay right or power to realise the property of a dissolved firm, or 

(b) the powers of an official assignee, receiver or Court under the Presidency-towns Insolvency 
Act, 1909 (2 of 1909), or the Provincial Insolvency Act, 1920 (5 of 1920), to realise the property of 
an insolvent partner. 
(4) This section shall not apply—  

(a) to firms or to partners in firms which have no place of business in 1[the territories to which 
this Act extends], or whose places of business in 2[the said territories] are situated in areas to which, 
by notification under 3[section 56], this Chapter does not apply, or 

(b)  to  any  suit  or  claim  of  set-off  not  exceeding  one  hundred  rupees  in  value  which,  in  the 
Presidency-towns, is not of a kind specified in section 19 of the Presidency Small Cause Courts Act, 
1882 (15 of 1882), or, outside the Presidency-towns, is not of a kind specified in the Second Schedule 
to  the  Provincial  Small  Cause  Courts  Act,  1887  (9  of  1887),  or  to  any  proceeding  in  execution  or 
other proceeding incidental to or arising from any such suit or claim. 

1. Subs. by Act 3 of 1951, s. 3 and the Schedule, for “Part A States and Part C States”. 
2. Subs. by s. 3 and the Schedule, ibid.,for “such States”. 
3. Subs. by Act 24 of 1934, s. 2 and the First Schedule, for “section 55”. 

18 

 
 
                                                      
STATE AMENDMENT 

Maharashtra 

Substitution  of  section  69A  of  IX  of  1932.--For  section  69A  of  the  principal  Act,  the  following 

section shall be substituted, namely:-- 

"69A. Charges for delay in compliance of section 60, 61, 62 or 63.--If any statement, intimation or 
notice under section 60, 61, 62 or as the case may be, 63, in respect of any registered firm is not sent or 
given  to  the  Registrar,  within  the  period  specified  in  that  section,  the  Registrar  may,  make  suitable 
amendments in the records relating to the firm, upon payment of charges for delay in sending or giving 
the same, at the rate of rupees two thousand per year or part thereof in respect of the period between the 
date of expiry of the period specified in that section and the date of making the payment.”. 
[Vide Maharashtra Act 16 of 2018, s. 3] 

70.  Penalty  for  furnishing  false  particulars.—Any  person  who  signs  any  statement,  amending 
statement, notice or intimation under this Chapter containing any particular which he knows to be false or 
does not believe to be true, or containing particulars which he knows to be incomplete or does not believe 
to be complete, shall be punishable with imprisonment which may extend to three months, or with fine, or 
with both. 

71.  Power  to  make  roles.—  (1)  The  1[State  Government]  2[may  by  notification  in  the  Official 
Gazette make rules] prescribing the fees which shall accompany documents sent to the Registrar of Firms, 
or which shall be payable for the inspection of documents in the custody of the Registrar of Firms, or for 
copies from the Register of Firms: 

Provided that such fees shall not exceed the maximum fees specified in Schedule I. 
(2) The State Government may 3[also] make rules—  

(a)prescribing the form of statement submitted under section 58, and of the verification thereof; 
(b)  requiring  statements,  intimations  and  notices  under  sections  60,  61,  62  and  63  to  be  in 

prescribed form,and prescribing the form thereof; 

(c) prescribing the form of the Register of Firms, and the mode in which entries relating to firms 

are to be made therein, and the mode in which such entries are to be amended or notes made therein; 

(d) regulating the procedure of the Registrar when disputes arise; 
(e) regulating the filing of documents received by the Registrar; 
(f) prescribing conditions for the inspection of original documents; 
(g) regulating the grant of copies; 
(h) regulating the elimination of registers and documents; 
(i) providing for the maintenance and form of an index to the Register of Firms; and 
(j) generally, to carry out the purposes of this Chapter. 

• 

(3) All rules made under this section shall be subject to the condition of previous publication. 

4[(4) Every rule made by the State Government under this section shall be laid, as soon as it is made, 

before the State Legislature.] 

CHAPTER VIII 
SUPPLEMENTAL 

72. Mode of giving public notice.—A public notice under this Act is given—  

(a)  where  it relates to the retirement  or  expulsion of a  partner from  a registered  firm,  or  to  the 
dissolution of a registered firm, or to the election to become or not to become a partner in a registered 
firm by a person attaining majority who was admitted as a minor to the benefits of partnership, by 

1. Subs. by the A.O. 1937, for “G.G. in C.”. 
2. Subs. by Act 20 of 1983, s. 2 and the Schedule, for “may make rules” (w.e.f. 15-3-1984). 
3. Ins. by the A.O. 1937. 
4. Ins. by Act 20 of 1983, s. 2 and Schedule (w.e.f. 15-3-1984). 

19 

 
 
 
                                                      
 
notice to the Registrar of Firms under section 63, and by publication in the Official Gazette and in at 
least  one  vernacular  newspaper  circulating  in  the  district  where  the  firm  to  which  it  relates  has  its 
place or principal place of business, and 

(b)  in  any  other  case,  by  publication  in  the  Official  Gazette  and  in  at  least  one  vernacular 
newspaper circulating in the district where the firm to which it relates has its place or principal place 
of business. 

73. [Repeals.] Rep. by the Repealing Act, 1938 (1 of 1938), s. 2 and Schedule. 

74. Savings.—Nothing in this Act or any repeal effected thereby shall affect or be deemed to affect—  

(a) any right, title, interest, obligation or liability already acquired, accrued or incurred before the 

commencement of this Act, or 

(b)  any  legal  proceeding  or  remedy  in  respect  of  any  such  right,  title,  interest,  obligation  or 

liability, or anything done or suffered before the commencement of this Act, or 

(c) anything done or suffered before the commencement of this Act, or 

(d) any enactment relating to partnership not expressly repealed by this Act, or 

(e) any rule of insolvency relating to partnership, or 

(f) any rule of law not inconsistent with this Act. 

_____ 

20 

 
 
SCHEDULE I 

MAXIMUM FEES 

[See sub-section (1) of section 71.] 

Document or act in respect of which 
the fee is payable 

Maximum fee 

Statement under section 58………………………...  Three rupees. 

Statement under section 60………………………...  One rupee. 

Intimation under section 61………………………...  One rupee. 

Intimation under section 62 ………………………..  One rupee. 

Notice under section 63…………………………….  One rupee. 

Application under section 64………………………  One rupee. 

Inspection of the Register of Firms under 

Eight annas for inspecting one 

sub-section (1) of section 66…………………….…  volume of the Register. 

Inspection of documents relating to a firm 

Eight annas for the inspection 

under sub-section (2) of section 66…….…………..  of all documents relating to onefirm. 

Copies from the Register of Firms 

Four annas for each hundred 
words of part thereof. 

Karnataka 

STATE AMENDMENTS 

Amendment  of  Schedule  I.—In  schedule  I  to  the  Indian  Partnership  Act,  1932  (Central  Act  9  of 

1932),— 

(1)  for  the  words  “Three  rupees”  and  “Four  annas”,  where  they  occur,  the  words  “one  hundred 

rupees”, and “one rupees”, shall respectively be substituted; 

(2)  for  the  words  “One  rupee”  appearing  against  “Statement  under  section  60”,  the  words,  “fifty 

rupees”, shall be substituted; 

(3) for the words “One rupee” appearing against “Intimation under section 61,” “Intimation under 62” 
and “Notice under section 63” and “application under section 64,” the words “Twenty five rupees” shall 
respectively be substituted. 

(4) for the  words,  “Eight annas” appearing  against “Inspection  of the  Register  of  Firms  under  sub-

section (1) of section 66”, the words, “Twenty rupees”, shall be substituted; 

(5) for the words, “Eight annas”, appearing against “Inspection of documents relating to a firm under 

sub-section (2) of section 66”, the words “Ten rupees” shall be substituted. 

[Vide Karnataka Act 1 of 1987, s. 2]. 

21 

 
 
 
 
 
 
 
 
 
 
Kerala 

STATE AMENDMENT 

Substitution of new Schedule for Schedule I.-In the Indian Partnership Act, 1932 (Central Act 9 of 

1932), for Schedule I, the following Schedule shall be substituted, namely 

“SCHEDULEI 
MaximumFees 
[See sub-section (1) of section 71] 

Document or act in respect of which the fee is 
payable 
Statement under section 58 

Statement under section 60 

Intimation under section 61 

Intimation under Section 62 

Notice under section 63 

Application udner section 64 

Maximum fee 

Five hundred rupees. 

Two hundred rupees. 

Two hundred rupees. 

Two hundred rupees 

Two hundred rupees 

Two hundred rupees 

Inspection of the Register of Firms under sub-section 
(1) of section 66 

Fifty Rupees for inspecting one volumn of 
theRegister. 

Inspection of documents relating to a firm under sub- 
section (2) of section 66 

One hundred rupees for the inspection of all 
documents relating to one firm. 

Copies from the Register of Firms 

One hundred rupees for each hundred words 
or a part thereof.” 

[Vide Kerala Act 32 of 2013, s. 2] 

Kerala 

Substitution of new Schedule for Schedule I.-In the Indian Partnership Act, 1932 (Central Act 9 

of 1932), for Schedule I, the following Schedule shall be substituted, namely:- 

“SCHEDULE I 

Maximum Fees 

[See sub-section (1) of section 71] 

Document or act in respect of which the fee is 
payable 
Statement under section 58 
Statement under section 60 
Intimation under section 61 
Intimation under section 62 
Notice under section 63 
Application under section 64 
Inspection of the Register of Firms under sub-section 
(1) of section 66 
Inspection of documents relating to a firm under sub- 
section (2) of section 66 
Copies from the Register of Firms 

[Vide kerala Act 25 of 1973, s. 2] 

22 

Maximum fee 

Fifteen rupees 
Five rupees 
Five rupees 
Five rupees 
Five rupees 
Five rupees 
Two rupees for inspecting one volume of the 
Register 
Two  rupees 
documents relating to one firm 
Fifty paise for each hundred words or part 
thereof.” 

inspection  of  all 

the 

for 

 
 
 
 
 
 
Rajasthan 

Substitution of Schedule I to the Central Act IX of 1932. – In Schedule I of Indian Partnership Act, 
1932  (Central  Act  IX  of  1932),  for  Schedule  I,  as  existing  in  the  application  thereof  to  the  State  of 
Rajasthan, the following shall be substituted, namely:- 

"SCHEDULE-I 

Maximum Fees 

[See sub-section (1) of Section 71] 

Document or Act in respect of which the 

Maximum Fee 

fee is payable. 

1 

2 

3 

1.  Statement under Section 58 

Hundred Rupees 

2.  Statement Under Section 60 

3. 

4. 

Intimation Under Section 61 

Intimation Under Section 62 

5.  Notice Under Section 63 

6.  Application Under Section 64 

Thirty Rupees 

Thirty Rupees 

Thirty Rupees 

Thirty Rupees 

Thirty Rupees 

7. 

Inspection of the Register of Firms Under 

Twenty Ruppes for inspection of one 

Sub-Section (1) of Section 66 

volume of register 

8. 

Inspection of documents relating to a firm 

Twenty Rupees for inspection of all 

under sub-section (2) of Section 66 

documents relating to one firm 

9.  Copies from the Register of Firms 

Six Rupees for each hundred words or 

part thereof.” 

[Vide Rajasthan Act 8 of 1996, s. 2] 

Substitution of new Schedule for Schedule I to Central Act IX of 1932.— For Schedule I to the 

principal Act, the following Schedule shall be substituted, namely:- 

23 

 
 
 
 
 
 
 
 
"SCHEDULE I  

Maximum Fees. 

(See sub-section (1) of section 71) 

Document or act in respect of which the fee is 

Maximum fee. 

payable. 

1 

1.    Statement  under section 58. 

2.    Statement under section 60. 

3.    Intimation under section 61. 

4.    Intimation under section 62. 

5.    Notice under section 63.   

6.    Application under section 64. 

2 

Fifteen rupees. 

Five rupees. 

Five rupees. 

Five rupees. 

Five rupees. 

Five rupees. 

7.    Inspection of the register of firms 

Two rupees, for inspecting 

       under sub-section (1) of section 66. 

one volume of Register. 

8.    Inspection of documents relating to a firm 

Two rupees for  inspection 

       under Sub-section (2) of section 66. 

of all documents relating 

9.    Copies from the register of firms . 

Two rupees for each  

to one firm. 

hundred words or part thereof.” 

[Vide Rajasthan Act 10 of 1971, s. 2] 

Substitution of Schedule I to the  Central Act IX of 1932.-In Schedule I of Indian Partnership Act, 
1932  (Central  Act  IX  of  1932),  for  Schedule  I,  as  existion  in  the  application  thereof  to  the  State  of 
Rajasthan, the following shall be substituted, namely:— 

"SCHEDULE-I 

Maximum Fees 
[See sub-section (1) of section 71] 

S. 
No. 

1. 

1. 

2. 

3. 

4. 

5. 

Document or act in respect of which the fee is payable 

Maximum Fee 

2. 

Statement under section 58 

Statement under section 60 

Intimation under section 61 

Intimation under section 62 

Notice under section 63 

3. 

Three hundred rupees 

One hundred rupees 

One hundred rupees 

One hundred rupees 

One hundred rupees 

24 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
6. 

7. 

8. 

Application under section 64 

Inspection of the Register of firms under sub-section (1) of 
section 66 

Inspection of documents relating to a firm under sub-
section (2) of section 66 

9. 

Copies from the Register of firms 

[Vide Rajasthan Act 7 of 2007, s. 2] 
Gujarat 

One hundred rupees 

One hundred rupees for 
inspection of one volume of 
Register 

One hundred rupees for 
inspection of all documents 
relating to one firm 
Fifteen rupees for each hundred 
words or part thereof." 

Substituted of Schedule of I of 9 of 1932.—In the Indian  Partnership Act, 1932 (9 of 1932), in its 

application  

“SHEDULE I 
MAXIMUM FEES 
(See sub-section (1) of section 71) 

Document or act in respect of which the fee is 
payable 

Maximum fee 

Statement under section 58 
Statement under section 60 
Statement under section 61 
Statement under section 62 
Notice under section 63 
Application under section 64 
Inspection of the Register of Firms 
under sub-section /1) of section 66 
Inspection of documents relating to a 
firm under sub-section /2) of section 66 
Copies from the Register of 
Firms 

[Vide Gujarat Act 25 of 2019, s. 2] 

Three hundred rupees 
One hundred fifty rupees 
One hundred fifty rupees 
One hundred fifty rupees 
One hundred fifty rupees 
One hundred fifty rupees 
Fifty rupees for inspecting one 
volume of the register 
Fifty rupees for inspection of all 
documents relating to one firm 
Fifty rupees for each hundred 
words or part thereof.". 

25 

 
 
 
 
 
SCHEDULE  II—[Enactments  Repealed.]  Rep.  by  Repealing  Act,  1938  (1  of  1938),  s.  2  and  the 

Schedule.  

______ 

26 

 
 
 
