Q1 A) X, Y and Z have recently started a business in partnership, there partnership deed

contains profit sharing ratio and nothing else After one year of successful running the business.
X started similar business in his personal capacity where he and his son used to look after the
business. Y and Z raised objection to X’s carrying on of similar business, but X has told them
that their partnership deed does not prohibit carrying on similar business, so he can legally carry
similar business.decide rights and obligations of X, Y and Z?
. (8 MARKS)
Q1 B) Rahul and Rohan own a business in partnership where they manufacture plastic pipes,
and other plumbing material. Rahul started a manufacturing unit in his personal capacity where
he would be manufacturing raw material required by Fertilizer companies Rohan wants to stop
Rahul from running that other business as that is affecting Rahul’s involvement in firms’
activities. Can Rahul be prevented from carrying that other business? would your answer be
different if the partnership deed contained a condition which reads as follows? “no partner
should carry any business other than firm’s business (7 MARKS)

Q2A) M/s Sujay and Co is a partnership firm consisting of Five partners S, U, J, A & Y, after
doing business as a firm for long, Mr. S wanted to retire from the firm and all partners also did
not object to his retirement and finally he retired from the firm w.e.f. 1st Jan 2020, but neither S
nor the firm gave any public notice of his retirement. On 1st April 2020, the firm bought goods of
Rs. 50,000 on credit from Mr. X who is regular goods supplier of the firm, due to sudden
COVID19 surge the firm gone into bankruptcy and nothing could be recovered from the estate
of the then partners of the firm U, J, A and Y Mr. S is financially sound so the creditor Mr. X
wanted to sue Mr. S for goods supplied to the firm after his retirement (Rs.50,000) as well there
are some old arrears due from the firm of Rs.135,000 (this related to transactions prior to S’s
retirement). Mr. X wants to recover both the amounts from S. State liability of S, in this regard?
. (10 MARKS)

Q3A) Mr. Tinku wanted to start a business of toys for which he had no capital of his own Tinku
went to a moneylender and asked for Rs.100,000 as loan, moneylender agreed on the condition
that he should be paid 1/4th of profits of the business to be carried by Mr. Tinku . Tinku used to
buy the goods and sell them and whatever profit was earned was shared by Tinku and the
moneylender The moneylender had no interface in the business except he had access to
accounts and was sharing profits After few years Tinku gone missing as he left India and settled
in Dubai, all the creditors of Tinku are now after the moneylender and they intend to recover
their debts from moneylender Can moneylender be held liable for the acts of Tinku as a partner
in the business of Tinku ?
(8 MARKS)
Q3B) Mr. Sanjog and Mr. Deven are partners of the firm Mr. Praveen who is friend of Deven had
good political connection Sanjog and Deven agreed to pay 5% commission on goods sold to
any customer referred by Praveen Praveen used to communicate to people that he is also
partner of the firm and they can deal with the firm Mr. Ashok has never met Praveen nor did he
ever heard of Praveen’s false statement that he is partner in the firm. Mr. Ashok advanced
Rs.200,000 to the firm which the partners are not repaying Mr. Ashok has now heard from
someone that Praveen is also partner of the firm Mr. Ashok intends to recover the amount from
Praveen (7 MARKS)