THE PARTNERSHIP ACT, 1932

(IX OF 1932)
CONTENTS
CHAPTER I
PRELIMINARY
1.Short title, ete!t "!# $o%%e!$e%e!t
2.&e'i!itio!(
3.A))li$"tio! o' Pro*i(io!( o' A$t, IX o' 1+,2
CHAPTER II
THE NAT-RE OF PARTNERSHIP
4.&e'i!itio! o' .P"rt!er(hi)/, .P"rt!er/ Fir% "!# .'ir% !"%e/
5.P"rt!er(hi) !ot $re"te# 01 (t"t2(
6.Mo#e o' #eter%i!i!3 ei(te!$e o' )"rt!er(hi)
4A A$t !ot to "))l1 $ert"i! rel"tio!(hi)
7.P"rt!er(hi)5"t56ill
8.P"rti$2l"r P"rt!er(hi)
CHAPTER III
RELATIONS OF PARTNERS TO ONE ANOTHER
9.7e!er"l #2tie( o' P"rt!er(
10.&2t1 to i!#e%!i'1 'or lo(( $"2(e# 01 Fr"2#
11.&eter%i!"tio! o' ri3ht( "!# #2tie( o' P"rt!er 01 $o!tr"$t 0et6ee! the P"rt!er(
12.The $o!#2$t o' the 02(i!e((
13.M2t2"l ri3ht( "!# li"0ilitie(
14.The )ro)ert1 o' the 'ir%
15.A))li$"tio! o' the )ro)ert1 o' the 'ir%
16.Per(o!"l )ro'it( e"r!e# 01 P"rt!er(
Ri3ht( "!# #2tie( o' P"rt!er( "'ter " $h"!3e i! the 'ir%, "'ter the e)ir1 o' the ter% o'
the 'ir%, "!# 6here "##itio!"l 2!#ert"8i!3( "re $"rrie# o2t
CHAPTER I9
RELATIONS OF PARTNERS TO THIR& PARTIES
18.P"rt!er to 0e "3e!t o' the 'ir%
19.I%)lie# "2thorit1 o' P"rt!er "( "3e!t o' the 'ir%
20.Ete!(io! "!# re(tri$tio! o' P"rt!er:( i%)lie# "2thorit1
21.P"rt!er "2thorit1 i! "! e%er3e!$1
22.Mo#e o' #oi!3 "$t to 0i!# 'ir%
23.E''e$t o' "#%i((io!( 01 " )"rt!er
24.E''e$t o' !oti$e to "$ti!3 )"rt!er
25.Li"0ilit1 o' " )"rt!er 'or "$t( o' the 'ir%
26.Li"0ilit1 o' the 'ir% 'or 6ro!3'2l "$t o' " )"rt!er
27.Li"0ilit1 o' " 'ir% 'or %i("))li$"tio! 01 )"rt!er
28.Hol#i!3 o2t
29.Ri3ht o' tr"!('eree o' " )"rt!er:( i!tere(t
30.Mi!or( "#%itte# to the 0e!e'it( o' )"rt!er(hi)
CHAPTER 9
INCOMIN7 AN& O-T7OIN7 PARTNERS
31.I!tro#2$tio! o' " )"rt!er
32.Retire%e!t o' " )"rt!er
33.E)2l(io! o' " )"rt!er
34.I!(ol*e!$1 o' " )"rt!er
35.Li"0ilit1 o' e(t"te o' #e$e"(e# )"rt!er
36.Ri3ht( o' o2t3oi!3 )"rt!er to $"rr1 o! $o%)eti!3 02(i!e((
37.Ri3ht( o' o2t3oi!3 )"rt!er i! $ert"i! $"(e( to (h"re (20(e;2e!t )ro'it(
38.Re*o$"tio! o' $o!ti!2e 32"r"!tee 01 $h"!3e i! 'ir%
CHAPTER 9I
&ISSOL-TION OF A FIRM
39.&i((ol2tio! o' " 'ir%
40.&i((ol2tio! 01 "3ree%e!t
41.Co%)2l(or1 #i((ol2tio!
42.&i((ol2tio! o! the h"))e!i!3 o' $ert"i! $o!ti!3e!$ie(
43.&i((ol2tio! 01 !oti$e o' )"rt!er(hi)5"t56ill
44.&i((ol2tio! 01 the Co2rt
45.Li"0ilit1 'or "$t( o' )"rt!er( #o!e "'ter #i((ol2tio!
46.Ri3ht( o' )"rt!er( to h"*e 02(i!e(( 6o2!# 2) "'ter #i((ol2tio!
47.Co!ti!2i!3 "2thorit1 o' )"rt!er( 'or )2r)o(e o' 6i!#i!3 2)
48.Mo#e o' (ettle%e!t o' "$$o2!t( 0et6ee! )"rt!er(
49.P"1%e!t o' 'ir%:( #e0t( "!# o' (e)"r"te #e0t(
50.Per(o!"l )ro'it( e"r!e# "'ter #i((ol2tio!
51.Ret2r! o' )re%i2% o! )re%"t2re #i((ol2tio!
53.Ri3ht( 6here )"rt!er(hi) $o!tr"$t i( re($i!#e# 'or 'r"2# or %i(re)re(e!t"tio!
<3= Ri3ht( to re(tr"i! 'ro% 2(e o' 'ir% !"%e or 'ir% )ro)ert1
54.A3ree%e!t( i! re(tr"i!t o' tr"#e
55.S"le o' 3oo#6ill "'ter #i((ol2tio!
Ri3ht( o' 021er "!# (eller o' 3oo#6ill
A3ree%e!t i! re(tr"i!t o' tr"#e
CHAPTER 9II
RE7ISTRATION OF FIRMS
56.Po6er to ee%)t 'ro% "))li$"tio! o' thi( Ch")ter
57.A))oi!t%e!t o' Re3i(tr"r(
58.A))li$"tio! 'or re3i(tr"tio!
59.Re3i(tr"tio!
60.Re$or#i!3 o' "lter"tio!( i! 'ir% !"%e "!# )ri!$i)"l )l"$e o' 02(i!e((
61.Noti!3 o' $lo(i!3 "!# o)e!i!3 o' 0r"!$he(
62.Noti!3 o' $h"!3e( i! !"%e( "!# "##re((e( o' )"rt!er(
63.Re$or#i!3 o' $h"!3e( i! "!# #i((ol2tio! o' " 'ir% re$or#i!3 o' 6ith#r"6"l o' " %i!or
64.Re$ti'i$"tio! o' %i(t"8e(
65.A%e!#%e!t o' Re3i(ter 01 or#er o' Co2rt
66.I!()e$tio! o' Re3i(ter "!# 'ile# #o$2%e!t(
67.7r"!t o' $o)ie(
68.R2le( o' e*i#e!$e
69.E''e$t o' !o!5re3i(tr"tio!
70.Pe!"lt1 'or '2r!i(hi!3 '"l(e )"rti$2l"r(
71.Po6er to %"8e r2le(
CHAPTER 9III
S-PPLEMENTAL
72.Mo#e o' 3i*i!3 )20li$ !oti$e
73.Re)e"l(
74.S"*i!3(
TEXT
THE PARTNERSHIP ACT, 1932
(IX OF 1932)
[8
th
April 1932]
A!
A$t
to define and amend the law relating to partnership
>here"( it is expedient to define and amend the law relating to partnership;
It is here! ena"ted as follows#$
CHAPTER I
PRELIMINARY
1= Short title, ete!t "!# $o%%e!$e%e!t=? %1& 'his ("t ma! e "alled the )artnership ("t*
1932.
+%2& It extends to the whole of )a,istan.-
%3& It shall "ome into for"e on the 1st da! of ."toer* 1932* ex"ept se"tion 69* whi"h
shall "ome into for"e on the 1st da! of ."toer* 1933.
2= &e'i!itio!(=? In this ("t* /nless there is an!thing rep/gnant in the s/0e"t or "ontext*$
%a& an 1a"t of a firm1 means an! a"t or omission ! all the partners or ! an! partner or
agent of the firm whi"h gi2es rise to a right enfor"eale ! or against the firm*
%& 1/siness1 in"l/des e2er! trade* o""/pation and profession;
%"& 1pres"ried1 means pres"ried ! r/les made /nder this ("t;
%d& 1third part!1 /sed in relation to a firm or to a partner therein means an! person who
is not a partner in the firm; and
%e& expressions /sed /t not defined in this ("t and defined in the 3ontra"t ("t %I4 of
1872& shall ha2e the meanings assigned to them in that ("t.
3= A))li$"tio! o' )ro*i(io!( o' A$t IX o' 1+,2=? 'he /n repealed pro2isions of the
3ontra"t ("t* 1872* sa2es in so far as the! are in"onsistent with the express pro2isions of this
("ts* shall "ontin/e to appl! to firms.
CHAPTER II
THE NAT-RE OF PARTNERSHIP
@= &e'i!itio! o' A)"rt!er(hi)A, A)"rt!erA, A'ir%A "!# A'ir% !"%eA=? 5)artnership1 is the
relation etween persons who ha2e agreed to share the profits of a /siness "arried on ! all or
an! of them a"ting for all.
)ersons who ha2e entered into partnership with one another are "alled indi2id/all!
1partners1 and "olle"ti2el! 1a firm1 and the name /nder whi"h their /siness is "arried on is "alled
the 1firm name1.
<= P"rt!er(hi) !ot $re"te# 01 (t"t2(=? 'he relation of partnership arises from "ontra"t and
not from stat/s;
(nd in parti"/lar the memers of a 6ind/ /ndi2ided famil! "arr!ing on a famil! /siness as
s/"h* or a 7/rmese 7/ddhist h/sand and wife "arr!ing on /siness as s/"h are not partners in
s/"h /siness.
4= Mo#e o' #eter%i!i!3 ei(te!$e o' )"rt!er(hi)=? In determining whether a gro/p of
persons is or is not a firm* or whether a person is or is not a partner in a firm* regard shall e had
to the real relation etween the parties as shown ! all rele2ant fa"ts ta,en together.
E)l"!"tio! 1=5 'he sharing of profits or of gross ret/rns arising from propert! ! persons
holding a 0oint or "ommon interest in that propert! does not of itself ma,e s/"h persons partners.
E)l"!"tio! 2=5 'he re"eipt ! a person of a share of the profits of a /siness or of a
pa!ment "ontingent /pon the earning of profits or 2ar!ing with the profits earned ! a /siness*
does not of itself ma,e him a partner with the persons "arr!ing on the /siness;
(nd in parti"/lar* the re"eipt of s/"h share of pa!ment $
%a& ! a lender of mone! to persons engaged or ao/t to engage in an! /siness*
%& ! a ser2ant or agent as rem/neration*
%"& ! the widow or "hild of a de"eased partner as ann/it!* or
%d& ! a pre2io/s owner or part owner of the /siness* as "onsideration for the sale of
the goodwill or share thereof* does not of itself ma,e the re"ei2er a partner with the
persons "arr!ing on the /siness.
4A= A$t !ot "))l1 to $ert"i! rel"tio!(hi)(=? 8othing "ontained in this a"t shall appl! to a
relationship "reated ! an! agreement etween 7an,ing "ompan! and a person or gro/p of
persons pro2iding for sharing of profits and losses arising from or relating to the pro2ision ! the
7an,ing "ompan! of finan"e to s/"h person or gro/p of persons.
E)l"!"tio!=5 for the p/rpose of this se"tion* 57an,ing 3ompan!9 and finan"e 5shall ha2e
the same meanings as in the 7an,ing tri/nals ordinan"e* 1981.
,= P"rt!er(hi) "t 6ill=? :here no pro2ision is made ! "ontra"t etween the partners for
the d/ration of their partnership* or for the determination of their partnership the partnership is
1partnership at will1.
+= P"rti$2l"r )"rt!er(hi)=? ( person ma! e"ome a partner with another person in
parti"/lar ad2ent/res or /nderta,ings.
CHAPTER III
RELATIONS OF PARTNERS TO ONE ANOTHER
9= 7e!er"l #2tie( o' )"rt!er(=? )artners are o/nd to "arr! on the /siness of the firm to
the greatest "ommon ad2antage* to e 0/st and faithf/l to ea"h other* and to render tr/e a""o/nts
and f/ll information of all things affe"ting the firm to an! partner or his legal representati2e.
1B= &2t1 to i!#e%!i'1 'or lo(( $"2(e# 01 'r"2#=? ;2er! partner shall indemnif! the firm for
an! loss "a/sed to it ! his fra/d in the "ond/"t of the /siness of the firm.
11= &eter%i!"tio! o' ri3ht( "!# #2tie( o' )"rt!er( 01 $o!tr"$t 0et6ee! the )"rt!er(=?
%1& </0e"t to the pro2isions of this ("t* the m/t/al rights and d/ties of the partners of a firm ma!
e determined ! "ontra"t etween the partners* and s/"h "ontra"t ma! e expressed or ma! e
implied ! a "o/rse of dealing.
</"h "ontra"t ma! e 2aried ! "onsent of all the partners* and s/"h "onsent ma! e
express or ma! e implied ! a "o/rse of dealing.
%2& A3ree%e!t( i! re(tr"i!t o' tr"#e= 8otwithstanding an!thing "ontained in se"tion
27 of the 3ontra"t ("t* 1872 s/"h "ontra"ts ma! pro2ide that a partner shall not "arr! on an!
/siness other than that of the firm while he is a partner.
12= The $o!#2$t o' the 02(i!e((=? </0e"t to "ontra"t etween the partners $
%a& e2er! partner has a right to ta,e part in the "ond/"t of the /siness;
%& e2er! partner is o/nd to attend diligentl! to his d/ties in the "ond/"t of the
/siness;
%"& an! differen"e arising as to ordinar! matters "onne"ted with the /siness ma! e
de"ided ! a ma0orit! of the partners* and e2er! partner shall ha2e the right to
express his opinion efore the matter is de"ided* /t no "hange ma! e made in the
nat/re of the /siness witho/t the "onsent of all the partners; and
%d& e2er! partner has a right to ha2e a""ess and to inspe"t and "op! an! of the oo,s
of the firm.
13= M2t2"l ri3ht( "!# li"0ilitie(=? </0e"t to "ontra"t etween the partners $
%a& a partner is not entitled to re"ei2e rem/neration for ta,ing part in the "ond/"t of the
/siness;
%& the partners are entitled to share e=/all! in the profits earned* and shall "ontri/te
e=/all! to the losses s/stained ! the firm;
%"& where a partner is entitled to interest on the "apital s/s"ried ! him* s/"h interest
shall e pa!ale onl! o/t of profits;
%d& a partner ma,ing* for the p/rposes of the /siness* an! pa!ment or ad2an"e e!ond
the amo/nt of "apital he has agreed to s/s"rie* is entitled to interest thereon at
the rate of six per "ent per ann/m;
%e& the firm shall indemnif! a partner in respe"t of pa!ments made and liailities
in"/rred ! him $
%i& in the ordinar! and proper "ond/"t of the /siness* and
%ii& in doing s/"h a"t* in an emergen"!* for the p/rpose of prote"ting the firm
from loss* as wo/ld e done ! a person of ordinar! pr/den"e* in his own
"ase* /nder similar "ir"/mstan"es; and
%f& a partner shall indemnif! the firm for an! loss "a/sed to it ! his wilf/l negle"t in the
"ond/"t of the /siness of the firm.
1@= The )ro)ert1 o' the 'ir%=? </0e"t to "ontra"t etween the partners* the propert! of the
firm in"l/des all propert! and rights and interests in propert! originall! ro/ght into the sto", of the
firm* or a"=/ired ! p/r"hase or otherwise* !* or for the firm or for the p/rposes and in the
"o/rse of the /siness of the firm* and in"l/des also the goodwill of the /siness.
>nless the "ontrar! intention appears* propert!* rights and interests in propert! a"=/ired
with mone! elonging to the firm are deemed to ha2e een a"=/ired for the firm.
1<= A))li$"tio! o' the )ro)ert1 o' the 'ir%=? </0e"t to "ontra"t etween the partners the
propert! of the firm shall e held and /sed ! the partners ex"l/si2el! for the p/rposes of the
/siness.
14= Per(o!"l )ro'it( e"r!e# 01 )"rt!er(= ? </0e"t to "ontra"t etween the partners$
%a& if a partner deri2es an! profit for himself from an! transa"tion of the firm* or from the
/se of the propert! or /siness "onne"tion of the firm or the firm name he shall
a""o/nt for that profit and pa! it to the firm;
%& if a partner "arries on an! /siness of the same nat/re as and "ompeting with that
of the firm* he shall a""o/nt for and pa! to the firm all profits made ! him in that
/siness.
1,= Ri3ht( "!# #2tie( o' )"rt!er( "'ter " $h"!3e i! the 'ir%, "'ter the e)ir1 o' the ter%
o' the 'ir% "!# 6here "##itio!"l 2!#ert"8i!3( "re $"rrie# o2t= ? </0e"t to "ontra"t etween
the partners$
%a& where a "hange o""/rs in the "onstit/tions of a firm* the m/t/al rights and d/ties of
the partners in the re"onstit/ted firm remain the same as the! were immediatel!
efore the "hange as far as ma! e;
%& where a firm "onstit/ted for a fixed term "ontin/es to "arr! on /siness after the
expir! of that term* the m/t/al rights and d/ties of the partners remain the same as
the! were efore the expir!* so far as the! ma! e "onsistent with the in"idents of
partnership$at$will; and
%"& where a firm "onstit/ted to "arr! o/t one or more ad2ent/res or /nderta,ings "arries
o/t other ad2ent/res or /nderta,ings* the m/t/al rights and d/ties of the partners in
respe"t of the other ad2ent/res or /nderta,ings are the same as those in respe"t of
the original ad2ent/res or /nderta,ings.
CHAPTER I9
RELATIONS OF PARTNERS TO THIR& PARTIES
1+= P"rt!er to 0e "3e!t o' the 'ir%=? </0e"t to the pro2isions of this ("t a partner is the
agent of the firm for the p/rposes of the /siness of the firm.
19= I%)lie# "2thorit1 o' )"rt!er "( "3e!t o' the 'ir%=? %1& </0e"t to the pro2isions of
se"tion 22*? the a"t of a partner whi"h is done to "arr! on* in the /s/al wa!* /siness of the ,ind
"arried on ! the firm* inds the firm.
'he a/thorit! of a partner to ind the firm "onferred ! this se"tion is "alled his 1implied
a/thorit!1.
%2& In the asen"e of an! /sage or "/stom of trade to the "ontrar!* the implied a/thorit!
of a partner does not empower him to $
%a& s/mit a disp/te relating to the /siness of the firm to aritration.
%& .pen a an,ing a""o/nt on ehalf of the firm in his own name*
%"& 3ompromise or relin=/ish an! "laim or portion of a "laim ! the firm*
%d& :ithdraw a s/it or pro"eeding filed on ehalf of the firm*
%e& (dmit an! liailit! in a s/it or pro"eeding against the firm*
%f& ("=/ire immo2ale propert! on ehalf of the firm*
%g& 'ransfer immo2ale propert! elonging to the firm* or
%h& ;nter into partnership on ehalf of the firm.
2B= Ete!(io! "!# re(tri$tio! o' )"rt!erC( i%)lie# "2thorit1=? 'he partners in a firm ma!*
! "ontra"t etween the partners* extend or restri"t the implied a/thorit! of an! partner.
8otwithstanding an! s/"h restri"tion* an! a"t done ! a partner on ehalf of the firm whi"h falls
within his implied a/thorit! inds the firm* /nless the person with whom he is* dealing ,nows of
the restri"tion or does not ,now or elie2e that partner to e a partner.
21= P"rt!erC( "2thorit1 i! "! e%er3e!$1=? ( partner has a/thorit!* in an emergen"!* to do
all s/"h a"ts for the p/rpose of prote"ting the firm from loss as wo/ld e done ! a person of
ordinar! pr/den"e* in his own "ase* a"ting /nder similar "ir"/mstan"es* and s/"h a"ts ind the
firm.
22= Mo#e o' #oi!3 "$t to 0i!# 'ir%=? In order to ind a firm* an a"t or instr/ment done or
exe"/ted ! a partner or other person on ehalf of the firm shall e done or exe"/ted in the firm
name* or in an! other manner expressing or impl!ing an intention to ind the firm.
23= E''e$t o' "#%i((io!( 01 " )"rt!er=? (n admission or representation made ! a partner
"on"erning the affairs of the firm is e2iden"e against the firm* if it is made in the ordinar! "o/rse of
/siness.
2@= E''e$t o' !oti$e to "$ti!3 )"rt!er=? 8oti"e to a partner who hait/all! a"ts in the
/siness of the firm or an! matter relating to the affairs of the firm operates as noti"e to the firm*
ex"ept in the "ase of a fra/d on the firm "ommitted ! or with the "onsent of that partner.
2<= Li"0ilit1 o' " )"rt!er 'or "$t( o' the 'ir%=? ;2er! partner is liale* 0ointl! with all the
other partners and also se2erall!* for all a"ts of the firm done while he is a partner.
24= Li"0ilit1 o' the 'ir% 'or 6ro!3'2l "$t( o' " )"rt!er=? :here ! the wrongf/l a"t or
omission of a partner a"ting in the ordinar! "o/rse of the /siness of a firm or with the a/thorit! of
his partners* loss or in0/r! is "a/sed to an! third part!* or an! penalt! is in"/rred* the firm is liale
therefore to the same extent as the partner.
2,= Li"0ilit1 o' 'ir% 'or %i("))li$"tio! 01 )"rt!er(=? :here
%a& ( partner a"ting within his apparent a/thorit! re"ei2es mone! or propert! from a
third part! and misapplies it* or
%& ( firm in the "o/rse of its /siness re"ei2es mone! or propert! from a third part!*
and the mone! or propert! is misapplied ! an! of the partners while it is in the
"/stod! of the firm* the firm is liale to ma,e good the loss.
2+= Hol#i!3 o2t=? %1& (n! one who ! words spo,en or written or ! "ond/"t represents
himself* or ,nowingl! permits himself to e represented* to e a partner in a firm* is liale as a
partner in that firm to an! one who has on the faith of an! s/"h representation gi2en "redit to the
firm* whether the person representing himself or represented to e a partner does or does not
,now that the representation has rea"hed the person so gi2ing "redit.
%2& :here after a partner@s death the /siness is "ontin/ed in the old firm name* the
"ontin/ed /se of that name or of the de"eased partner@s name as a part thereof shall not of itself
ma,e his legal representati2e or his estate liale for an! a"t of the firm done after his death.
29= Ri3ht( o' tr"!('eree o' " )"rt!erC( i!tere(t=? %1& ( transfer ! a partner of his interest in
the firm* either asol/te or ! mortgage* or ! the "reation ! him of a "harge on s/"h interest*
does not entitle the transferee* d/ring the "ontin/an"e of the firm* to interfere in the "ond/"t of the
/siness* or to re=/ire a""o/nts* or to inspe"t the oo,s of the firm* /t entitles the transferee
onl! to re"ei2e the share of profits of the transferring partner* and the transferee shall a""ept the
a""o/nt of profits agreed to ! the partners.
%2& If the firm is dissol2ed or if the transferring partner "eases to e a partner* the
transferee is entitled as against the remaining partners to re"ei2e the share of the assets of the
firm to whi"h the transferring partner is entitled* and* for the p/rpose of as"ertaining that share* to
an a""o/nt as from the date of the dissol/tion.
3B= Mi!or( "#%itte# to the 0e!e'it( o' )"rt!er(hi)=? %1& a person who is a minor a""ording
to the law to whi"h he is s/0e"t ma! not e a partner in a firm /t with the "onsent of all the
partners for the time eing* he ma! e admitted to the enefits of partnership.
%2& </"h minor has a right to s/"h share of the propert! and of the profits of the firm as
ma! e agreed /pon* and he ma! ha2e a""ess to inspe"t and "op! an! of the a""o/nts of the
firm.
%3& </"h minor@s share is liale for the a"ts of the firm* /t the minor is not personall!
liale for an! s/"h a"t.
%4& </"h minor ma! not s/e the partners for an a""o/nt or pa!ment of his share of the
propert! or profits of the firm* sa2e when se2ering his "onne"tion with the firm* and in s/"h "ase
the amo/nt of his share shall e determined ! a 2al/ation made as far as possile in a""ordan"e
with the r/les "ontained in se"tion 48#
)ro2ided that all the partners a"ting together or an! partner entitled to dissol2e the firm
/pon noti"e to other partners ma! ele"t in s/"h s/it to dissol2e the firm and there/pon the "o/rt
shall pro"eed with the s/it as one for dissol/tion and for settling a""o/nts etween the partners*
and the amo/nt of the share of the minor shall e determined along with the shares of the
partners.
%5& (t an! time within six months of his attaining ma0orit!* or of his otaining ,nowledge
that he had een admitted to the enefits of partnership* whi"he2er date is later* s/"h person ma!
gi2e p/li" noti"e that he has ele"ted to e"ome or that he has ele"ted not to e"ome a partner in
the firm* and s/"h noti"e shall determine his position as regards the firm#
)ro2ided that* if he fails to gi2e s/"h noti"e* he shall e"ome a partner in the firm* on the
expir! of the said six months.
%6& where an! person has een admitted as a minor to the enefits of partnership in a
firm* the /rden of pro2ing the fa"t that s/"h person had no ,nowledge of s/"h admission /ntil a
parti"/lar date after the expir! of six months of his attaining ma0orit! shall lie on the persons
asserting that fa"t.
%7& where s/"h person e"omes a partner* $
%a& his rights and liailities as a minor "ontin/e /p to the date on whi"h he e"omes a
partner* /t he also e"omes personall! liale to third parties for all a"ts of the firm
done sin"e he was admitted to the enefits of partnership* and
%& his share in the propert! and profits of the firm shall e the share to whi"h he was
entitled as a minor.
%8& :here s/"h person ele"ts not to e"ome a partner*$
%a& his rights and liailities as a miner "ontin/e /p to the date on whi"h he e"omes a
partner /t he also e"omes personall! liale to third parties for all a"ts of the firm
done sin"e he was admitted to the enefits of )artnership* and
%& his share shall not e liale for an! a"ts of the firm done after the date of the noti"e*
and
%"& he shall e entitled to s/e the partners for his share of the propert! and profits in
a""ordan"e with s/se"tion %4&.
%9& 8othing in s/se"tions %7& and %8& shall affe"t the pro2isions of se"tion 28.
CHAPTER 9
INCOMIN7 AN& O-T7OIN7 PARTNERS
31= I!tro#2$tio! o' " )"rt!er=? %1& </0e"t to "ontra"t etween the partners and to the
pro2isions of se"tion 30* no person shall e introd/"ed as a partner into a firm witho/t the "onsent
of all the existing partners.
%2& </0e"t to the pro2isions of se"tion 30* a person who is introd/"ed as a partner into
a firm does not there! e"ome liale for an! a"t of the firm done efore he e"ame a partner.
32= Retire%e!t o' " )"rt!er=? %1& ( partner ma! retire $
%a& with the "onsent of all the other partners*
%& in a""ordan"e with an express agreement ! the partners* or
%"& where the partnership is at will* ! gi2ing noti"e in writing to all the other partners of
his intention to retire.
%2& ( retiring partner ma! e dis"harged from an! liailit! to an! third part! for a"ts of
the firm done efore his retirement ! an agreement made ! him with s/"h third part! and
partners of the re"onstit/ted firm* and s/"h agreement ma! e implied ! a "o/rse of dealing
etween s/"h third part! and the re"onstit/ted firm after he had ,nowledge of the retirement.
%3& 8otwithstanding the retirement of a partner from a firm* he and the partners "ontin/e
to e liale as partners to third parties of an! a"t done ! an! of them whi"h wo/ld ha2e een an
a"t of the firm if done efore the retirement* /ntil p/li" noti"e is gi2en of the retirement#
)ro2ided that a retired partner is not liale to an! third part! who deals with the firm witho/t
,nowing that he was a partner.
%4& 8oti"es /nder s/se"tions %3& ma! e gi2en ! the retired partner or ! an! partner
of the re"onstit/ted firm.
33= E$l2(io! o' " )"rt!er=? %1& ( partner ma! not e expelled from a firm ! an! ma0orit! of
the partners* sa2es in the exer"ise in good faith of powers "onferred ! "ontra"t etween the
partners.
%2& 'he pro2isions of s/se"tions %2&* %3& and %4& of se"tion 32 shall appl! to an expelled
partner as if he were a retired partner.
3@= I!(ol*e!$1 o' " )"rt!er=? %1& :here a partner in a firm is ad0/di"ated an insol2ent he
"eases to e a partner on the date on whi"h the order of ad0/di"ation is made* whether or not the
firm is there! dissol2ed.
%2& :here /nder a "ontra"t etween the partners the firm is not dissol2ed ! the
ad0/di"ation of a partner as an insol2ent the estate of a partner so ad0/di"ated is not liale for an!
a"t of the firm and the firm is not liale for an! a"t of the insol2ent* done after the date on whi"h
the order of ad0/di"ation is made.
3<= Li"0ilit1 o' e(t"te o' #e$e"(e# )"rt!er=? :here /nder a "ontra"t etween the partners
the firm is not dissol2ed ! the death of a partner* the estate of a de"eased partner is not liale for
an! a"t of the firm done after his death.
34= Ri3ht( o' o2t3oi!3 )"rt!er to $"rr1 o! $o%)eti!3 02(i!e((=? %1& (n o/tgoing partner
ma! "arr! on a /siness "ompeting with that of the firm and he ma! ad2ertise s/"h /siness* /t*
s/0e"t to "ontra"t to the "ontrar!* he ma! not $
%a& /se the firm name*
%& represent himself as "arr!ing on the /siness of the firm* or
%"& soli"it the "/stom of persons who were dealing with the firm efore the "eased to e
a partner.
%2& A3ree%e!t( i! re(tr"i!t o' tr"#e $ a partner ma! ma,e an agreement with his
partners that on "easing to e a partner he will not "arr! on an! /siness similar to that of the firm
within a spe"ified period or within spe"ified lo"al limits; and* notwithstanding an!thing "ontained in
se"tion 27* of the 3ontra"t ("t 1872* s/"h agreement shall e 2alid if the restri"tions imposed are
reasonale.
3,= Ri3ht o' o2t3oi!3 )"rt!er i! $ert"i! $"(e( to (h"re (20(e;2e!t )ro'it(=? :here an!
memer of a firm has died or otherwise "eased to e a partner* and the s/r2i2ing or "ontin/ing
partners "arr! on the /siness of the firm with the propert! of the firm witho/t an! final settlement
of a""o/nts as etween them and the o/tgoing partner of his estate* then* in the asen"e of a
"ontra"t to the "ontrar!* the o/tgoing partner or his estate is entitled at the option of himself or his
representati2es to s/"h share of the profits made sin"e he "eased to e a partner as ma! e
attri/tale to the /se of his share of the propert! of the firm or to interest at the rate of six per
"ent per ann/m on the amo/nt of his share in the propert! of the firm#
)ro2ided that where ! "ontra"t etween the partners an option is gi2en to s/r2i2ing or
"ontin/ing partners to p/r"hase the interest of a de"eased or o/tgoing partner* and that option is
d/l! exer"ised* the estate of the de"eased partner* or the o/tgoing partner or his estate* as the
"ase ma! e* is not entitled to an! f/rther or other share of profits; /t if an! partner ass/ming to
a"t in exer"ise of the option does not in all material respe"ts "ompl! with the terms thereof* he is
liale to a""o/nt /nder the foregoing pro2isions of this se"tion.
3+= Re*o$"tio! o' $o!ti!2i!3 32"r"!tee 01 $h"!3e i! 'ir%=? ( "ontin/ing g/arantee gi2en
to a firm* or to a third part! in respe"t of the transa"tion of a firm* is in the asen"e of agreement
to the "ontrar!* re2o,ed as to f/t/re transa"tions from the date of an! "hange in the "onstit/tion of
the firm.
CHAPTER 9I
&ISSOL-TION OF A FIRM
39= &i((ol2tio! o' " 'ir%=? 'he dissol/tion of partnership etween all the partners of a firm is
"alled the 1dissol/tion of the firm1.
@B= &i((ol2tio! 01 "3ree%e!t=? ( firm ma! e dissol2ed with the "onsent of all the partners
or in a""ordan"e with a "ontra"t etween the partners.
@1= Co%)2l(or1 #i((ol2tio!=? ( firm is dissol2ed $
%a& ! the ad0/di"ation of all the partners or of all the partners /t one as insol2ent or
%& ! the happening of an! e2ent whi"h ma,es it /nlawf/l for the /siness of the firm to
e "arried on or for the partners to "arr! it on in partnership#
)ro2ided that* where more than one separate ad2ent/re or /nderta,ing is "arried on ! the
firm* the illegalit! of one or more shall not of itself "a/se the dissol/tion of the firm in respe"t of its
lawf/l ad2ent/res and /nderta,ings.
@2= &i((ol2tio! o! the h"))e!i!3 o' $ert"i! $o!ti!3e!$ie(=? </0e"t to "ontra"t etween
the partners a firm is dissol2ed$
%a& if "onstit/ted for a fixed term* ! the expir! of that term;
%& if "onstit/ted to "arr! o/t one or more ad2ent/res or /nderta,ings* ! the "ompletion
thereof;
%"& ! the death of a partner; and
%d& ! the ad0/di"ation of a partner as an insol2ent.
@3= &i((ol2tio! 01 !oti$e o' )"rt!er(hi)5"t56ill=? %1& :here the partnership is at will* the
firm ma! e dissol2ed ! an! partner gi2ing noti"e in writing to all the other partners of his
intention to dissol2e the firm.
%2& 'he firm is dissol2ed as from the date mentioned in the noti"e as the date of
dissol/tion or* if no date is so mentioned* as from the date of the "omm/ni"ation of the noti"e.
@@= &i((ol2tio! 01 the Co2rt=? (t the s/it of a partner* the 3o/rt ma! dissol2e a firm on an!
of the following gro/nds* namel!#$
%a& that a partner has e"ome of /nso/nd mind* in whi"h "ase the s/it ma! e ro/ght
as well ! the next friend of the partner who has e"ome of /nso/nd mind as ! an!
other partner;
%& that a partner* other than the partner s/ing* has e"ome in an! wa! permanentl!
in"apale of performing his d/ties as partner;
%"& that a partner* other than the partner s/ing* is g/ilt! of "ond/"t whi"h is li,el! to
affe"t pre0/di"iall! the "arr!ing on of the /siness* regard eing had to the nat/re of
the /siness;
%d& that a partner* other than the partner s/ing* willf/ll!* or persistentl!* "ommits rea"h
of agreements relating to the management of the affairs of the firm or the "ond/"t of
its /siness* or otherwise so "ond/"ts himself in matters relating to the /siness
that it is not reasonal! pra"ti"ale for the other partners to "arr! on the /siness in
partnership with him;
%e& that a partner* other than the partner s/ing* has in an! wa! transferred the whole of
his interest in the firm to a third part!* or has allowed his share to e "harged /nder
the pro2isions of r/le 49 of .rder 44I of the Airst <"hed/le to the 3ode of 3i2il
)ro"ed/re* 1908* or has allowed it to e sold in the re"o2er! of arrears of land$
re2en/e or of an! d/es re"o2erale as arrears of land$re2en/e d/e ! the partner;
%f& 'hat the /siness of the firm "annot e "arried on sa2e at a loss; or
%g& .n an! other gro/nd whi"h renders it 0/st and e=/itale that the firm sho/ld e
dissol2ed.
@<= Li"0ilit1 'or "$t( o' )"rt!er( #o!e "'ter #i((ol2tio!=? %1& 8otwithstanding the
dissol/tion of a firm* the partners "ontin/e to e liale as s/"h to third parties for an! a"t done !
an! of them whi"h wo/ld ha2e een an a"t of the firm if done efore the dissol/tion* /ntil p/li"
noti"e is gi2en of the dissol/tion#
)ro2ided that the estate of a partner who dies* or who if ad0/di"ated an insol2ent* or of a
partner who* not ha2ing een ,nown to the person dealing with the firm to e a partner* retires
from the firm* is not liale /nder this se"tion for a"ts done after the date on whi"h he "eases to e
a partner.
%2& 8oti"es /nder s/se"tion %1& ma! e gi2en ! an! partner.
@4= Ri3ht o' )"rt!er( to h"*e 02(i!e(( 6o2!# 2) "'ter #i((ol2tio!=? .n the dissol/tion of
a firm e2er! partner or his representati2e is entitled* as against all the other partners or their
representati2es* to ha2e the propert! of the firm applied in pa!ment of the dets and liailities of
the firm* and to ha2e the s/rpl/s distri/ted among the partners or their representati2es a""ording
to their rights.
@,= Co!ti!2i!3 "2thorit1 o' )"rt!er( 'or )2r)o(e( o' 6i!#i!3 2)=? (fter the dissol/tion of
a firm the a/thorit! of ea"h partner to ind the firm* and the other m/t/al rights and oligations of
the partners* "ontin/e notwithstanding the dissol/tion* so far as ma! e ne"essar! to wind /p the
affairs of the firm and to "omplete transa"tions eg/n /nfinished at the time of the dissol/tion* /t
not otherwise#
)ro2ided that the firm is in no "ase o/nd ! the a"ts of a partner who has een
ad0/di"ated insol2ent; /t this pro2iso does not affe"t the liailit! of an! person who has after the
ad0/di"ation represented himself or ,nowingl! permitted himself to e represented as a partner of
the insol2ent.
@+= Mo#e o' (ettle%e!t o' "$$o2!t( 0et6ee! )"rt!er(=? In settling the a""o/nts of a firm
after dissol/tion* the following r/les shall* s/0e"t to agreement ! the partners* e oser2ed#$
%a& Bosses* in"l/ding defi"ien"ies of "apital* shall e paid first o/t of profits* next o/t of
"apital* and* lastl!* if ne"essar!* ! the partners indi2id/all! in the proportions in
whi"h the! were entitled to share profits.
%& 'he assets of the firm* in"l/ding an! s/ms "ontri/ted ! the partners to ma,e /p
defi"ien"ies of "apital* shall e applied in the following manner and order$
%i& in pa!ing the dets of the firm to third parties;
%ii& in pa!ing to ea"h partner ratal! what is d/e to him from the firm for
ad2an"es as disting/ished from "apital;
%iii& in pa!ing to ea"h partner ratal! what is d/e to him on a""o/nt of "apital; and
%i2& the resid/e* if an!* shall e di2ided among the partners in the proportions in
whi"h the! were entitled to share profits.
@9= P"1%e!t o' 'ir%C( #e0t( "!# o' (e)"r"te #e0t(=? :here there are 0oint dets d/e from
the firm* and also separate dets d/e from an! partner* the propert! of the firm shall e applied in
the first instan"e in pa!ment of the dets of the firm* and* if there is an! s/rpl/s* then the share of
ea"h partner shall e applied in pa!ment of his separate dets or paid to him. 'he separate
propert! of an! partner shall e applied first in the pa!ment of his separate dets* and the s/rpl/s
%if an!& in the pa!ment of the dets of the firm.
<B= Per(o!"l )ro'it( e"r!e# "'ter #i((ol2tio!=? </0e"t to "ontra"t etween the partners
the pro2isions of "la/se %a& of se"tion 16? shall appl! to transa"tions ! an! s/r2i2ing partner or
! the representati2es of a de"eased partner* /nderta,en after the firm is dissol2ed on a""o/nt of
the death of a partner and efore its affairs ha2e een "ompletel! wo/nd /p#
)ro2ided that where an! partner or his representati2e has ro/ght the goodwill of the firm*
nothing in this se"tion shall affe"t his right to /se the firm name.
<1= Ret2r! o' )re%i2% o! )re%"t2re #i((ol2tio!=? :here a partner has paid a premi/m
on entering into partnership for a fixed term* and the firm is dissol2ed efore the expiration of that
term otherwise than ! the death of a partner* he shall e entitled to repa!ment of the premi/m or
of s/"h part thereof as ma! e reasonale* regard eing had to the terms /pon whi"h he e"ame
a partner and to the length of time d/ring whi"h he was a partner* /nless $
%a& the dissol/tion is mainl! d/e to his own mis$"ond/"t* or
%& the dissol/tion is in p/rs/an"e of an agreement "ontaining no pro2ision for the
ret/rn of the premi/m or an! part of it.
<2= Ri3ht( 6here )"rt!er(hi) $o!tr"$t i( re($i!#e# 'or 'r"2# or %i(re)re(e!t"tio!=?
:here a "ontra"t "reating partnership is res"inded on the gro/nd of the fra/d or
misrepresentation of an! of the parties thereto* the part! entitled to res"ind is* witho/t pre0/di"e to
an! other right* entitled$
%a& to a lien on* or a right of retention of* the s/rpl/s or the assets of the firm remaining
after the dets of the firm ha2e een paid* for an! s/m paid ! him for the p/r"hase
of a share in the firm and for an! "apital "ontri/ted ! him;
%& to ran, as a "reditor of the firm in respe"t of an! pa!ment made ! him towards the
dets of the firm; and
%"& to e indemnified ! the partner or partners g/ilt! of the fra/d or misrepresentation
against all the dets of the firm.
<3= Ri3ht to re(tr"i! 'ro% 2(e o' 'ir% !"%e or 'ir% )ro)ert1=? (fter a firm is dissol2ed*
e2er! partner or his representati2e ma!* in the asen"e of a "ontra"t etween the partners to the
"ontrar!* restrain an! other partner or his representati2e from "arr!ing on a similar /siness in the
firm name or from /sing an! of the propert! of the firm for his own enefit* /ntil the affairs of the
firm ha2e een "ompletel! wo/nd /p#
)ro2ided that where an! partner or his representati2e has ro/ght the goodwill of the firm*
nothing in this se"tion shall affe"t his right to /se the firm name.
<@= A3ree%e!t( i! re(tr"i!t o' tr"#e=? )artners ma!* /pon or in anti"ipation of the
dissol/tion of the firm* ma,e an agreement that some or all of them will not "arr! on a /siness
similar to that of the firm within a spe"ified period or within spe"ified lo"al limits# and
notwithstanding an!thing "ontained in se"tion 27 of the 3ontra"t ("t* 1872* s/"h agreement shall
e 2alid if the restri"tions imposed are reasonale.
<<= S"le o' 3oo#6ill "'ter #i((ol2tio!=? %1& in settling the a""o/nts of a firm after dissol/tion*
the goodwill shall* s/0e"t to "ontra"t etween the partners* e in"l/ded in the assets* and it ma!
e sold either separatel! or along with other propert! of the firm.
%2& Ri3ht( o' 021er "!# (eller o' 3oo#6ill $ :here the goodwill of a firm is sold after
dissol/tion* a partner ma! "arr! on a /siness "ompeting with that of the /!er and he ma!
ad2ertise s/"h /siness* /t* s/0e"t to agreement etween him and the /!er he ma! not $
%a& /se the firm name*
%& represent himself as "arr!ing on the /siness of the firm or
%"& soli"it the "/stom of persons who were dealing with the firm efore its dissol/tion.
%3& A3ree%e!t( i! re(tr"i!t o' tr"#e $ (n! partner ma!* /pon the sale of the goodwill
of a firm ma,e an agreement with the /!er that s/"h partner will not "arr! on an! /siness
similar to that of the firm within a spe"ified period or within spe"ified lo"al limits* and*
notwithstanding an!thing "ontained in se"tion 27 of the 3ontra"t ("t* 1872* s/"h agreement shall
e 2alid if the restri"tions imposed are reasonale.
CHAPTER 9II
RE7ISTRATION OF FIRMS
<4= Po6er to ee%)t 'ro% "))li$"tio! o' thi( Ch")ter=? 'he +)ro2in"ial Co2ernment of an!
)ro2in"e ma!* ! notifi"ation in the +offi"ial CaDette-* dire"t that the pro2isions of this 3hapter
shall not appl! to +that )ro2in"e- or to an! part thereof spe"ified in the notifi"ation.
<,= A))oi!t%e!t o' Re3i(tr"r(=? %1& 'he +)ro2in"ial Co2ernment- ma! appoint Eegistrars of
Airms for the p/rposes of this ("t* and ma! define the areas within whi"h the! shall exer"ise their
powers and perform their d/ties.
%2& ;2er! Eegistrar shall e deemed to e a p/li" ser2ant within the meaning of
se"tion 21 of the )a,istan )enal "ode.
<+= A))li$"tio! 'or Re3i(tr"tio!=? %1& 'he registration of a firm ma! e effe"ted at an! time
! sending ! post or deli2ering to the Eegistrar of area in whi"h an! pla"e of /siness of the firm
is sit/ated or proposed to e sit/ated* a statement in the pres"ried form and a""ompanied ! the
pres"ried fee* stating $
%a& the firm name*
%& the pla"e or prin"ipal pla"e of /siness of the firm*
%"& the names of an! other pla"es where the firm "arries on /siness*
%d& the date when ea"h partner 0oined the firm*
%e& the names in f/ll and permanent addresses of the partners* and*
%f& d/ration of the firm.
'he statement shall e signed ! all the partners* or ! their agents spe"iall! a/thoriDed in
this ehalf.
%2& ;a"h person signing the statement shall also 2erif! it in the manner pres"ried.
%3& ( firm name shall not "ontain an! of the following words* namel!#$
Co2ernment 1Finnah1* 1G/aid$e$(Dam1* or words expressing or impl!ing the san"tion* appro2al or
patronage of the 1Aederal1 Co2ernment or an! )ro2in"ial Co2ernment or of the 1G/aid$e$(Dam1*
ex"ept when the )ro2in"ial Co2ernment signifies its "onsent to the /se of s/"h words as part of
the firm name ! order in writing.
%3(& ( firm name shall not "ontain the name of the 1>nited 8ations1 or its are2iations
thro/gh the /se of its initial letters or of an! s/sidiar! od! set /p ! that od! /nless it has
otained the pre2io/s a/thoriDation of the <e"retar! Ceneral of the >nited 8ations in writing.
%37& ( firm name shall not "ontain the name of the 1:orld 6ealth .rganiDation1 or its
are2iations thro/gh the /se of its initial letters /nless it has otained the pre2io/s a/thoriDation
of the Hire"tor$Ceneral in writing.
%33& ( firm name shall not "ontain an! word whi"h ma! e de"lared ! the )ro2in"ial
Co2ernment* ! notifi"ation in the offi"ial CaDette to e /ndesirale#
)ro2ided that a firm whi"h has as part of its name an! word de"lared ! the )ro2in"ial
Co2ernment to e /ndesirale shall* within one month of s/"h de"laration* alter its name and
send a statement to this effe"t to the Eegistrar.
<9= Re3i(tr"tio!=? when the Eegistrar is satisfied that the pro2isions of se"tion 58 ha2e een
d/l! "omplied with* he shall re"ord an entr! of the statement in a register "alled Eegister of Airms
and shall file the statement.
4B= Re$or#i!3 o' "lter"tio!( i! 'ir% !"%e "!# )ri!$i)"l )l"$e o' 02(i!e((=? %1& :hen an
alteration is made in the firm name or in the lo"ation of the prin"ipal pla"e of /siness of
registered firm a statement ma! e sent to the Eegistrar a""ompanied ! the pres"ried fee*
spe"if!ing the alteration and signed and 2erified in the manner re=/ired /nder se"tion 58.
%2& :hen the Eegistrar is satisfied that the pro2isions of s/se"tion %1& ha2e een d/l!
"omplied with he shall amend the entr! relating to the firm in the Eegister of Airms in a""ordan"e
with the statement* and shall file it along with the statement relating to the firm filed /nder se"tion
59.
41= Noti!3 o' $lo(i!3 "!# o)e!i!3 o' 0r"!$he(=? :hen a registered firm dis"ontin/es
/siness at an! pla"e or egins to "arr! on /siness at an! pla"e* s/"h pla"e not eing its
prin"ipal pla"e of /siness* an! partner or agent of the firm ma! send intimation thereof to the
Eegistrar* who shall ma,e a note of s/"h intimation in the entr! relating to the firm in the Eegister
of Airms* and shall file the intimation along with the statement relating to the firm filed /nder
se"tion 59.
42= Noti!3 o' $h"!3e i! !"%e( "!# "##re((e( o' )"rt!er(=? :hen an! partner in a
registered firm alters his name or permanent address* an intimation of the alteration ma! e sent
! an! partner or agent of the firm to the Eegistrar* who shall deal with it in the manner pro2ided
in se"tion 61.
43= Re$or#i!3 o' $h"!3e( i! "!# #i((ol2tio! o' " 'ir%=? %1& :hen a "hange o""/rs in the
"onstit/tion of a registered firm an! in"oming* "ontin/ing or o/tgoing partner* and when a
registered firm is dissol2ed an! person who was a partner immediatel! efore the dissol/tion* or
the agent of an! s/"h partner or person spe"iall! a/thoriDed in this ehalf* ma! gi2e noti"e to the
Eegistrar of s/"h "hange or dissol/tion* spe"if!ing the date thereof; and the Eegistrar shall* ma,e
a re"ord of the noti"e in the entr! relating to the firm in the Eegister of Airms* and shall file the
noti"e along with the statement relating to the firm filed /nder se"tion 59.
%2& Re$or#i!3 o' 6ith#r"6"l o' " %i!or $ :hen a minor who has een admitted to the
enefits of partnership in a firm attains ma0orit! and ele"ts to e"ome or not to e"ome a partner*
and the firm is then a registered firm* he* or his agent spe"iall! a/thoriDed in this ehalf* ma! gi2e
noti"e to the Eegistrar that he has or has not e"ome a partner* and the Eegistrar shall deal with
the noti"e in the manner pro2ided in s/se"tion %1&.
4@= Re$ti'i$"tio! o' %i(t"8e=? %1& 'he Eegistrar shall ha2e power at all times to re"tif! an!
mista,e in order to ring the entr! in the Eegister of Airms relating to an! firm into "onformit! with
the do"/ments relating to that firm filed /nder this "hapter.
%2& .n appli"ation made ! all the parties who ha2e signed an! do"/ment relating to
the firm filed /nder this "hapter* the Eegistrar ma! re"tif! an! mista,e in s/"h do"/ment or in the
re"ord or note thereof made in the Eegister of Airms.
4<= A%e!#%e!t o' Re3i(ter 01 or#er o' Co2rt=? ( "o/rt de"iding an! matter relating to a
registered firm ma! dire"t that the Eegistrar shall ma,e an! amendment in the entr! in the
Eegister of Airms relating to s/"h firm whi"h is "onse=/ential /pon its de"ision* and the Eegistrar
shall amend the entr! a""ordingl!.
44= I!()e$tio! o' Re3i(ter "!# 'ile# #o$2%e!t(=? %1& 'he Eegister of Airms shall e open
to inspe"tion ! an! person on pa!ment of s/"h fee as ma! e pres"ried.
%2& (ll statements* noti"es and intimations filed /nder this 3hapter shall e open to
inspe"tion* s/0e"t to s/"h "onditions and on pa!ment of s/"h fee as ma! e pres"ried.
4,= 7r"!t o' $o)ie(=? 'he Eegistrar shall on appli"ation f/rnish to an! person on pa!ment of
s/"h fee as ma! e pres"ried* a "op!* "ertified /nder his hand* of an! entr! or portion thereof in
the Eegister of Airms.
4+= R2le( o' e*i#e!$e=? %1& (n! statement* intimation or noti"e re"orded or noted in the
Eegister of Airms shall* as against an! person ! whom or on whose ehalf s/"h statement*
intimation or noti"e was signed* e "on"l/si2e proof of an! fa"t therein stated.
%2& ( "ertified "op! of an entr! relating to a firm in the Eegister of Airms ma! e
prod/"ed in proof of the fa"t of the registration of s/"h firm* and of the "ontents of an! statement*
intimation or noti"e re"orded or noted therein.
49= E''e$t o' !o!5re3i(tr"tio!=? %1& 8o s/it to enfor"e a right arising from a "ontra"t or
"onferred ! this ("t shall e instit/ted in an! 3o/rt ! or on ehalf of an! person s/ing as a
partner in a firm against the firm or an! person alleged to e or to ha2e een a partner in the firm
/nless the firm is registered and the person s/ing is or has een shown in the Eegister of Airms
as a partner in the firm.
%2& 8o s/it to enfor"e a right arising from a "ontra"t shall e instit/ted in an! 3o/rt ! or
on ehalf of a firm against an! third part! /nless the firm is registered and the persons s/ing are
or ha2e een shown in the Eegister of Airms as partners in the firm.
%3& 'he pro2isions of s/se"tions %1& and %2& shall appl! also to a "laim of set$off or
other pro"eeding to enfor"e a right arising from a "ontra"t* /t shall not affe"t $
%a& the enfor"ement of an! right to /se for the dissol/tion of a firm or for a""o/nts of a
dissol2ed firm* or an! right or power to realise the propert! of a dissol2ed firm* or
%& the powers of an offi"ial assignee* re"ei2er or "o/rt /nder the 1+Insol2en"! %Iara"hi
Hi2ision 2 J J("t*- or the )ro2in"ial Insol2en"! ("t* 1920 to realiDe the propert! of an
insol2ent partner.
%4& 'his se"tion shall not appl! $
%a& to firms or to partners in firms whi"h ha2e no pla"e of /siness in +)a,istan- or
whose pla"es for /siness in +)a,istan- are sit/ated in areas to whi"h ! notifi"ation
/nder +se"tion 56- this 3hapter does not appl! or
%& to an! s/it or "laim of set$off not ex"eeding one h/ndred r/pees in 2al/e whi"h* ?JJJ
is not of a ,ind spe"ified in the <e"ond <"hed/le to the )ro2in"ial <mall 3a/se
3o/rts ("t* 1887 or to an! pro"eeding in exe"/tion or other pro"eeding in"idental to
or arising from an! s/"h s/it or "laim.
,B= Pe!"lt1 'or '2r!i(hi!3 '"l(e )"rti$2l"r(=? (n! person who signs an! statement*
amending statement* noti"e or intimation /nder this 3hapter "ontaining an! parti"/lar whi"h he
,nows to e false or does not elie2e to e tr/e* or "ontaining parti"/lars whi"h he ,nows to e
in"omplete or does not elie2e to e "omplete* shall e p/nishale with imprisonment whi"h ma!
extend to three months* or with fine* or with oth.
,1= Po6er to %"8e r2le(=? %1& +)ro2in"ial Co2ernment- ma! ma,e r/les pres"riing the fees
whi"h shall a""ompan! do"/ments sent to the Eegistrar of Airms* or whi"h shall e pa!ale for
the inspe"tion of do"/ments in the "/stod! of the Eegistrar of Airms* or whi"h shall e pa!ale for
the inspe"tion of do"/ments in the "/stod! of the Eegistrar of Airms or for "opies from the
Eegister of Airms#
)ro2ided that s/"h fees shall not ex"eed the maxim/m fees spe"ified in <"hed/le.
)ro2ided f/rther that the fees pa!ale for an! ser2i"e desired on the same wa! on whi"h
an appli"ation for the same is made ma! e do/le the aforesaid maxim/m fees.
%2& 'he +)ro2in"ial Co2ernment- ma! +also- ma,e r/les $
%a& pres"riing the form of statement s/mitted /nder se"tion 58* and of the 2erifi"ation
thereof;
%& re=/iring statements* intimations and noti"es /nder se"tions 60*61*62 and 63 to e
in pres"ried form* and pres"riing the form* thereof;
%"& pres"riing the form of the Eegister of Airms and the mode in whi"h entries relating
to firms are to e made therein* and the mode in whi"h s/"h entries are to e
amended or notes made therein;
%d& reg/lating the pro"ed/re of the Eegistrar when disp/tes arise;
%e& reg/lating the filing of do"/ments re"ei2ed ! the Eegistrar;
%f& pres"riing "onditions for the inspe"tion of original do"/ments;
%g& reg/lating the grant of "opies;
%h& reg/lating the elimination of registers and do"/ments;
%i& pro2iding for the maintenan"e and form of an index to the Eegister of Airms; and
%0& generall!* to "arr! o/t the p/rposes of this 3hapter.
%3& (ll r/les made /nder this se"tion shall e s/0e"t to the "ondition of pre2io/s
p/li"ation.
CHAPTER 9III
S-PPLEMENTAL
,2= Mo#e o' 3i*i!3 )20li$ !oti$e=? ( p/li" noti"e /nder this ("t is gi2en $
%a& where it relates to the retirement or exp/lsion of a partner from a registered firm* or
to the dissol/tion of a registered firm* or to the ele"tion to e"ome or not to e"ome
a partner in a registered firm ! a person attaining ma0orit! who was admitted as a
minor to the enefits of partnership* ! noti"e to the Eegistrar of Airms /nder se"tion
63* and ! p/li"ation in the lo"al +offi"ial CaDette- and in at least one 2erna"/lar
newspaper "ir"/lating in the distri"t where the firm to whi"h it relates has its pla"e or
prin"ipal pla"e of /siness* and
%& in an! other "ase* ! p/li"ation in the lo"al +offi"ial CaDette- and in at least one
2erna"/lar newspaper "ir"/lating in the distri"t where the firm to whi"h it relates has
its pla"e or prin"ipal pla"e of /siness.
,3= DRe)e"l(=E =? Eep. ! the Eepealing ("t* 1938 %I of 1938&* <.2 and <"hed/le.
,@= S"*i!3(=? 8othing in this ("t or an! repeal effe"ted there! shall affe"t or e deemed to
affe"t$
%a& an! right* title* interest* oligation or liailit! alread! a"=/ired* a""r/ed or in"/rred
efore the "ommen"ement of this ("t* or
%& an! legal pro"eeding or remed! in respe"t of an! s/"h right* title* interest* oligation
or liailit!* or an!thing done or s/ffered efore the "ommen"ement of this ("t* or
%"& an!thing done or s/ffered efore the "ommen"ement of this ("t* or
%d& an! ena"tment relating to partnership not expressl! repealed ! this ("t* or
%e& an! r/le of insol2en"! relating to partnership* or
%f& an! r/le of law not in"onsistent with this ("t.