Abicabiity 3o whale oTn &i a

oG., 2o 19

The ndion adnesu.hib Act, 193 2

enesia atuSHe O asctnesu hib 3Bus ine in clude
Tsade, Occubadi on
PsHo Resa on
Gsutnesuhip (Sec, he Stel ati on blw ess ons6a53o ciadion
sho hove agied o hae OPoons Moive Acquition ains
he io it
a buinesd

ip
Casi3tied on b a 034 Gn one o hem
Mutua acting 0 a xee mert to Shaxe o.it

sh
AgencyX
o baxtnuhis
9inciadionm
pa0 Aget ssentiaeodusie
Rel
nßess ds
ohesxaise agsieed, Joss

er
Eem erdts a anesus hib
filic
i bosxne in Psio t
ahasing katio

Aboctati on usro 09 mosie Peso.ns (ConcSasive Evidence)

rtn
Pan estuhi p ism ha Saexade
Mudual gency Casdinas Pscin
cil
egal ntis o
fasneus hip Law.
Pa
in o Can' become pasdneS
An act do ne in h
wJh he congeat s o paxcnes Co SL 0
may be Gd mitted do o
benelit an euhib. b uai ne im s an ac
Benaidasty ony)
al bascneus
Rg steement.- By al haexana Concened
9% and Y ae Co 0 wm e a house
C0.%
a LO0uibten
Jet out o a nat x and Y
Paetnesusbip is NoLUNTARILY and divide Ahe net strcta
No
CONTRAc TUAL
2)x and y buy 20 OMong
Pascne yahib ia cyaakd by en mnt lobydLtta, agsr eeing themselueo
 and Co OLneAS a ho us e. Conce Muual Tue

e he houes a a hote
Pasdnshib
mancged Rea Rol adion
etha by 4hemselues by o manag
Shoing o bralit non- con ciuusive uidence
ox h ei common bene i.
Nes Receipa o xoi o4 Buainas.
X agsees wih N, a goldsmtth, Jo Pay mend ondsigend ubon eari ng ot
bu and ux niah gald toy Jo be waxkesd
up
in
by um and sald, hl hate Speitkeexdai on om
n exhip.
eS wding OwT U

Shasi 03X bagment is seceiued by

y aee

ip
xand uraskogelhess
d as Cascpepte Jendr o
but X h all ueceive atl 30,jits hatl bay widow ox chitd o deceas ed

sh
(No pasctn es ann u
owe a bad Oen e
and Y asHe foi rt Owne

er
he busineSs coidexalion
, Sale o gooduwill,
X a bub liah a 0gHe eb to buh liah od Jhi

rtn
Dwn abook wsiibten by y and do ayY Exib knce Mutu a Pgany THue Te

he ne Nof capa ci oa o-re3 do fascn êyahih

ind o.Jhe3t bbdn esh by h
Pa
aSH engeb b avd
a dt dona 3oirms name
04Hets

J Jo ba X b ex co kms Knda o Potnesuhib

fasdtcul ast Pascnesuskb Sec. 3)
an d Y
o
Sh ate Co AtA otep cuisuing n d
teplace ment ca and divide eaally bl w Pesuaon may becoma pasutne anoth e
with
hem pxoceeds Paxes Hecdved o asiculask undesuka king
us
Ne 6) Aduentusie Comp leted
Pascm 3s ip Aibalueol

may de cide
u Contnue
Paxhn ecs hib a ill
 9unatto o.P Padneuhi nodt ivel
No bovi son
Come o an end.
iolution
ny i me byiv tay nodice by

asdn ex0 his urillin qnl

Noe Tdusration imli ed

ip
P
csbnedk_ od wi0

sh
3 axaeahip Ja Jixed sesn AJ4e eupisuy which
comes to an end

er
Ao Expisy Pavctn
etsib cordtnue no witl
be unlaopul

rtn
igu.48
Padneshih af wil
nako (Esdokbel)
Yasdtn eby HoNding Cut (Jec, 28)
Pa
hen a pexson Kaowing 3
TO be St Tes edel
94@es ents
Q a actner Jn
hi msel himaely
no

He Ji ahle i ke a
o any 0ne sho
6e odner 3n Jbim
has given LIedit

to h tm
The x ue gi ven n Section 18 d also ahhlicable o Josme
padn who h 3etised psiom Aa isn wih oud giving
poroh e natie o94etisemart
 ny dxanaactio n of pism
Use a oms pxopesuty 0 tuai ness (ooneekion
Ds oism nome
Onit-2 Rel atious o Paxtheets
comp eting
Dudies o Potn esr in Pautn eSa hib Fim No No Buhintas

ne anothet) Pastn 23tSha0l nat Cassi 0n busin uich

enc hal uies Sec.q) o Om naure &combeting
Casy Dn buine to he siRadest Common he doe he hal be accout
advandoge
ame
6) Jut.and aithul o each othe

ip
CRendes accourda and uu n otmoction yeing
he m o an ane a Jhi epesertoutivwe (10 Not to aian ka seight

sh
T he does batn eu hih may be

2 tydo in demniyo obs caus es bl aud (Se 10) dinaoSuee

er
?arctn e lhallinde mni)y he pitm 0 0ny Jass Cat tol to
A1To ac hauctho uy
xaud n he Condu he buines
he an d

rtn
do nos xai it he
(3 Not Jo Coss Buin eaec 11(2
0n Jinhlo o
hoe SHestocaid Lotsiac
Pa
h en

shall nat any athe buaint, Rigu> Patn andex Pastnesuhub Act
while he Conctinu do be atn
@ dligentySec 42 () TO ake asct in busine
2TO be head o raulH
Not to claim Hlmun e ation $ To a0 mattessaeting he
ontsibuti' an Jo loageho is
Tndemaily O Loss due to unlllul neglect, ALO
maters decided by maj asi
No berdgnal ps4oLir Chan e in eatou
pasctn ahall accouttostotba
(0R Co ect
A
i to
R ecoatitukion. all Pascmets
the sAm whidh he deu ve uom
 objeck ad muss ton Neo Pacte
and coby any BoDk oi
nSect Con en o abactneu is eauisied
equal thare o Agesmed ok ?s To ad mit acne.
0e
Totxet On Cabital To ad mit mino indo Ben lits.

Retiuemeats Paxctn e hw a sught do etire

alooed Loss
ish comet o all astneu
No Tneea Out o Interet in aeca dance wih agsekmect
P0 Pot allowd cutdn es b noti ce

ip
Tntes At on Adoances No tobe h elled

sh
Pasctn e doance ove and above y majoou Pasctn
e.
Captal
Noe T Cordor act bt oUide

er
erdtitle Tndeset ageed upon. fost expluon
Faidth
J4 not agsecd, ( 67. b.a

rtn
Benepiy o um
Tndemnilicaticn bypim
P asuth ex 43) To cae 1 Covmpetin butnis ate
Tndemniliel
Pa
fosr att baymorcts macde and liabitities in cusuiee Comin C
ach eahip
by him in dino soustse bints 03H he has a ighd Jo Cession
n en esg tny man o 03xdinany psucence Combeting
bios
0eaperc o il se> siainod
im B ud

Tohald andapplythe same exclusiuel Jotcheciliz eiod

he busup ase busine eciJied Local li mith
can coabeting
Em et gen y Paxmeha athosuiy o do all uch Cauy 0

buai ness
ac 0ecess ax ket ha om
srom Lass ab a man abidinang pruden ce The Casdues
winls
n
Comting
he canl
 Ue name Condidi ons do bind he
Solicit ism Cuutbmex Fox Tapiad udhat)
Rehrese d hima Q caxsing
Naxnm a Buine
a
buaine o4ism,
Ac done Sxelate AD nosemal busiaesl
9To haeSubaequeat bsuali c done don' as ate
nosmal Jo
UniessaJhestibe agsueed astnest is eatitled busina.
Pos oL nce censat on9 i sh aste a wi nat bind he isum
eVen J done in
ia ed in ixm. ism ame.

ip
( ASn ate aim ndeient
( Oualway 0 o.s811ying 0n Buaipead

sh
Don n uual way of Bsne
6Thi iahtJ availabJe i ima oyd

er
htob&y ot in al setled and Unusual
im OIie m buinesb
eer cs Nade a BuJnes
o

rtn
Heuesentati ve
USage Ttade
(C)Even o decers ed paxtne
can claim C In h_pim nam.
Pa
Mubt be dn 4im
Lonceht Taplieel Aush asuity o a Pascn est
OR
O he st manne Sh ouing rde ntion
eclosreas Audhascity Se. 11) mpltad (sac1 o ind he m,
Prudhosidx
Mudual Ag eement
03 Suten Noaq9reement
Ma oso bo Impli e 0H
b a co e a daaling
Pasctm enhip
apHeeret Uent
>Act of Paxtn

Buo e Casuied
by rm
 Ast Oubide Talied fuJhogtis Pasun es' Audhatity n an Em Hgend

(a) Submission o dispute to abidotadi tn To do all such ac a

b) oben Bank accou
n o OLn
9uast-Cousi&)
ame
To odecA She ism om Sas
A a man 03t dunas budence
Compomixe 0A xli nquiah klaim a ism
wihdQu0 suit isum faoctnesushib sm bound ven he
le) Adonit any iabiltty Ja uits m Ae eutai de med Audhostty
Acauise mmovgahle paopes bn behal a im do Thisd Paty)
91 19 analex imm ou Zuhla pxobexty o m iabJtties Pasn Sec. 25to 21)

ip
(h1 encte io Jo paxsn esaipon behal oium Sec 25)Joint savexal al
acct Ahe isun Lshile hu is

sh
ea on op Talied Ahosaity sec lo) a barcknex,

Pascne by Mutu al gemeret can Thisvd Paxc

Jiabii towayds

er
Renduuic
A pasdnou aB4 able
Tmplted Audhosui

rtn
Pavn e
uend
eve S3eehin RosHmand Nomuna
b) oduridh dandinq anySres dsdctiom
Pa
fc Pascth es ola ishin Jmpuli e Rlada and Brudies a+e Change in JiMm (fec
QudhotLh bindaJhe sUnle ohes4iAe aqseed
a Changein Constttuti oo
Exeehtion tesum he bun
Thistd pasid Kooe Jhe Hestsúction CAddiAi onal Nentuse alt Combletim
Thind doen't kooo heia 6iglaal NeadukeA

pCtnex Hemaina he Same 0 in beydnning.

claoliry
Pasicnesuahu Ps-o pesi Sec) Fo3ts ongul Ac Pane9 ' Sec 26
Os CD.o Omibaion
Tndud
piobesy suight2 Jnesxest
one dn odbnas coususe opbui nea, hin authasut
A popasuy, ghts ntexent
o he basuna sts

acquited 9o31 puspose and in Rebul Thisd Pasiy injued

Coususe p ism Pen al
co dil D bsine fotm i iable he same exkent as the
batae
Ab blic.adion isim hauo besky Mi apklicatisn by Patn Sec,2)

ip
Ees patne9 ntitled to atlly he oocne su
acding io
pbcerd uhaste
amee excuaivel Ahe pus pob e

sh
Aeceivey
buineab 4he MOne

asdness Probesd wheh04 Fsms

o om h isd bosd

er
9o besdy
and
en e al No.
mis abblies it
Bus whese basctn s'

rtn
have an in
esion do
make ism's YSHopety Can ncowue o butn eA Heceiu ey
mone
be made so
ou ThStd asct.
,
Pa
L'abily oshe Acds o aabche and padneys misabboinds

P con9 Sec. 23) HOV ISion shaol

Ad miss ion make goDd Suh lod,

An admissicn Stesee ndtechion mdda by Nodice do an Acsine Pcoth ex-(Sec 21)

p 0sttne94
Pascnes uho habituall octd in Jhe
Relatin o aloits h i1 3 euidence
bui nesy
the iam.
T mado n o3tdli na Cousse Bwnesmo
opesates hodice to Jhe m
Con ditiona
Noice actualnot (omadsruc tive
b) Musd
beHecei ve b way king ocne
elade to th Jixms b
usiat
Exce pionb Ln cae o 5aud b Pasumes
abilisies o he un n he sm
SebesHode natice s94ecyuiredo
Beae adhainin majaity
ainosA
Right liabiliie Nou48 Moy 19 d-ed o his ahase in þxoPEt &bxobe
Neiho bason eW Juable , nox hid edade
These mu be ate at 2 majoX mem bes beposte
Can't be de cl ased Snsalvend, but im
min ot Can be
ad mitsed do benelitd de cal cTed O insoS oent he, S
opptci a0 9eceive oQ1ial
e
in Ypbesy
fSsgnee
Rig hdso ina na Am
Shaste ssopesu Poins O oddrainamajoiy

ip
(2 Saection &Cepying O Acount
la Acces Jo o

sh
he Acot wshin 6 mandha ià majai wh
eue
Ina ee and cop he Same
0R Dakr
Con? ins peet conidedial namati on Juis obtaining kn owledge o been

er
3esdsu cked to atn h ondy ad misted ko benait
(3falog o suit Mio ha o decide hat

rtn
To be pocmest 6 eave he iam,
Fo is Ahe obd ce
ushtn he a no iven ia due AhaHeo 6Ni Nodice Lntentt on
Pa
This Suut Lon be made Uy when ha deci.de Pubicd Dsb

seve comeeton h he To beco me bastner

ddar connect)
option do become Pcsdo o c emod Pasdn

On adtains'ng Tmajoy
o qiueno ice0
Pails xisy

at fa he s ame, entitled Jo ame o Suchbeiod

he A

Sh are betoe undess ohe Whe agxeed. Esesueise Opt on b Mino on

obtai nin ma od
me Pactnex
g his owm vailotton )willingnes
0R
by his failue to giue_noice
He bec amês pes onos able o httd pouuty
he ac 6)Rescinq Patne
STNCE HE sAS
TO May be dischasrg ed Hom i.abili o an hi
Be NE FTTS.)
cdy b
he tanot o
become P astn e
Agseeme rdt . ThisdPcoudy
Righhand iabhiitte continue to be
Recotiued Am
hose a omino3u o date agiuing Rie.d Pcne Condenes to be Stobje to
bublie notice
Jhisdbascty until bublkc no4iCe
Hi ahaue a no04 Jtable apte uhlte
noice Resssi ePaS ne NO Thisd
Siakte

ip
Entitled Jo ueo hs haste apbsuait
who de als i 34R 3ed outme ihous
and btob23ty a asce

sh
kooustadge ha Jhe

Reconatisu tion Pos inexuahib fisma (Sec 31-35 Publtc N oice Can be give
Ressre Pcsdnas90

er
Ad misston Se 31)
ond y widh cors ent o at xaing Ptns.
6n Pascns o. SHeontitued

rtn
NOv 19
Neu iable ett d one
Sec 33)
6mork
be fase i admission can
Pactnes be exbele until
ascne sheeipialy BeagHe es o
Pa
bea
eupuAion m ade by majsoat
aat Jiabilities he wi0l be able oothesu
Thisd
hiadbay cannotholdhim Jliable bec.au
ood Fatsh
Dack 0 uiuity contract Bse ndesest s Stm nt
ven
n
gen ance
Minor obts become pascmeSH i be
nce Tesm o eulbion eied in condsioct
Juabe odmited o beeib
e 32 Pasuoe Jto be
Reie ment be s esxved th no ice
(a) modl Pocm s
in
ih ohe
accOX dan ce
ren Co
Giuen opou nišy aBeing9Mad
hed
wih expHe ss ag4eement
Notice inkntion when basctn ekchib
at i
hat A Eublaion is Naid?
tabili
Tcondrnes

He corctinues o be and.can
pascto

Ckasm Ne snathot mea His date jan's. liasle

Etode Semair Siable
Sue Po Seund a hish axe o onlyoo Such ck done during
Ca iel Jenuse of hs pasuhnesuhp do alL Jia deaih

foaidn a xelled asm ()NoPublicN Nctiee a SAR Quiseal

Same Pastn
Taanajen aTndesieat

ip
aalep cy Sec 34) aPasutnes ndeStet i
Pascne o Rm i od judic aked as analuent

sh
Trars esued Jo hisd 034

He easea o be a basctn3 on he d ode der, b chas ged o qccount decsee o cou

heJhes he isxm a ds akved toworc diabttbutes dhod pasctietahib

er
batd n Jhe 9Tecoue
Jan d Sieoenu

rtn
no dss olueel b nauDu eacy Vaxctn0
Cxeaes suRed geund
tade o 3rusolvert Pas Jnes not iaeast
any ack m
Pa
Fism also ADt iahle Mo.d 7anJex
nso.sead done aadveAcy t A bs otuse
To
asuhnH

OV 3 m co ka Cseati on Chahg o3 ueh intsetb

enexaty fsxm dissodued THam3 en enidad o

not di aloed ?? Lrdeere h he nouct buain ea
ueuise aecouds
b oo ka
 Txans estee's Rights Nov ati on The Su bJ3uti on o
neu con t ae A in
p ace a an d me,
Dusing he onti nuante on Bis00ution o Canssiac
Pasneuship. a on Hetixement ePxi udd
Aanaexguune am Ong 9e abion blu he pastt es
Receive t are agai rad Jhe Stemain n in acontsact ohich entitlas
anajesx ng basctnas Jhe m each eh

Bound to cceb he To Xecive but baeent a sd bascty

accoundk staRtagseed
o ism which Jxara es9uin daing 0

ip
pascne w enditec
cetainirne

sh
fox haxe
ertied fo an aecounuto

er
Riahta and Rudies o Rcstne ae hangee
9AeconituAion

Revocaion ondinuing
rtn
guastant-ea b change in istm
Pa
unJe55 ohHo ide

Condinutng ueiCrutee 8Tven

nstesls oct al
Tusd Pad
Revo ked os utue dstcno oction siom date
Change Lonti tudion
 fesmanea Tncaboct
iocapoct munt b houn
Uni3 Ragiskxaion and tooludton a fim 3)misco nduct am ex
Sec 33
Pascnes1 oun
Ribalution o Pasctn3a hi bl past n es
Siaoludion isem
miscoan dt, J& ke
l o ae he

Sis. o Fiam as. o Yaxtnuh amblin on Stock Exchan

Continu ation o
-condi oue ony Raconatihtion ess frd epual ox neg.ect by

ip
8 tcine
PUnex ccdknd bwsinesu.
Lotnding-up Realisaion a aast only Heualuadi on

sh
Taki ng Peoctneuahi.b Book
i abilAie
Baeach ot Ageemecd

er
Ostde o ose
Cousct
May be dissalued Not 0deed Embezrde med miss abpaoLimone
b 0x dex oX Cousd Cou tm's
Kecpi ng essoneos Lecoundth

rtn
Scebe Tovas ues diseluon oldin mase Cauh 3han alle wed
o4 fascnesrthib. dovofoes disaud on Reus a Fo hou accouds
Pa
chosur
Ae osded aeade
Final
BepBapka uwhen pcscne

ansjassred hale
ido sed
isaluction 03der oCouwd (fec.. 49) Chexged on
decnee
Couxt at suk otualve Sald n SHecoues adelak
o4 Paschn est Jn Jand
Paschnea nandy Heauy Jerr y lim Cotinu ous
Padn ex Unsoind mnd Jos
(b) Cous nay
3ut Gcd Eayutable_pOundy
oxde diuoludi on n pe2ki on nod Lock in ranagemerdt
by S are aan ne 0.4 sieo d inpbecoaice SuhtSac te
 ModeA o BiMolušion (ee U1-43) Retusim oD PsHemasueie DAmal uiion Sec S1)
on
isoluti by Agaeemend paid iemiun oentening nte
Combusasy 9isolusion pacmesahip os ixed emo
Hap beni ng oAny even whieh ma Ky And
desim
Unlaupu Da busin es o be cakied en
9io ued seote Such

b) hen one axmos4e bui n ey (oheruise han by Badh

Dn auul buin Can be Coninue He ed f6s epay merd
liti) soludi on On Hoh berinc o Cenbin Conti ngencit
CSe42) (b) 9eesimini na 9euum

ip
m
coutiches ixed RJm
Co mblets on of adoentue 3und acn king xa af Patneahib

sh
9eath a Pasctne Lengha Time
Tnsolvency ot Pacn CNo Paiemium Reiund

er
9saludd on by Noce
Padn esuahi b ad ue o Jus aiscadae /eadh
mis condud
ate mentioned No pxouis iom fa 9iepay met

rtn
Noice
Fxom ha date

ade n ot D-ee o Co mmu niccdion s) Right o indmnidy when paxchesaht

mento on ed No ce tes ctnde Po xaud
Pa
On
(a)
tSec52)
naequenr.a oludion Jtc 9f- s5 Pasu entitled to es cindis
A)Continuing futhonit asune (Sec y2) erdtited to ien
Ondil inding u Righd 9Keterctiom o
To Comblete Asancetiom Jel tuniniahee ARtesslemertt im dht
at he timeo disalution Fot any baid by
Sum im
Fiom in' bound b act s otue or Cortsubtf on a Cabidel
pame (6) as o CSHeeliok
8ank
Pesa on xe paexeacts umset cn al JroloenE (cBe Jnde mnitted by p aschoesguil
paxcmes is able O ac nao lves
asehnex, tratel
 uge name SuS11 endes s sonal bxoli eane ate
Right so se dain 9 OTm
on (35o )
dba oldi
Oade ss o theoive agse ad bxot 20ne
(a) Dale th eie ageed, al diso aludion ,
b any oans oc lon o
any posdne u SHebesedeti ve ay En m ame
ses cin
6) But whexe ant pasn@A bought he ism'a bsuobes
gooduit No padres Can ate disakution but be oxe compJetion

wiadin-p
5 Riah do coHy On buhine s hen ecep on

ip
gcrodu-t fAny pastnen boughd gcpdui. He
Gec 55)
enitied name

sh
ald
Pcotnes may cask Com beti ng
buoevs 3AFRLizadion o opey o we ds ima and

buye peso nal debs se ua)

er
T5Pastn e ma nod (Todn Peson al Deb

rtn
Ube oGme
AdFirmRsop ed Fy am
selicit us tomasus
and Sustpiu Resuono ebi
umhel
Pa
(e h
a0 not Caesi Combobng bunkn 6Sep ode
spectifed pedod A 08- sona
sbeeited oca Bmits
Lnd

6) Jtabili op Pascn Br dene aHo diualution (3ecus)

until public notice qve0 oluci.cm
Excebtion

h o dica

Tat olvent
Reaised-Reaon dealing him
dont kaoue wheh he a poottne
 sgning and vetieation Pcotm ex
Regitsration o Rm
P9ocedu9Ke o Regi toeati on (Sec 58 ond 59) 0 by thal oudhauaed gent

Time Any i me dusung Continu anee Regastoradiom byy Regiiorco

Pox tn eahib. Reqis upon
atiaae tion 3hals
AFPication RegisdsQx Ae a G.ce o Businesd Skecouda an n SY o Aateneat
(ap plie.atian) o Reg ia des lixm
Ruine ip alPace ode ment and ivsue a
ALS o ile
Busine ss iy m
no bo Sed Jo be Atkuakel Cedipkcate

ip
fox mofees Sst eche mert
Consequene e Non- Reqixtxation Sc 69)
bxec sib ed 0stm

sh
b3ues csibed onay-19
iuil Suit bl p 0sctn exus andim
No0
Contendt Fim's Name Can t Sue Atne im

er
P9ace Psun cipal P9ace 0 Business an pasctn e

Bate 2ach pcsdn oi ned

enosuc.e hib igh ven Jo him

rtn
0g sHee-ment os b Act
Name in u and ess on at
Tha pusan ad SADP Sung ave a

o ist m
Pa
Feust adti 6n Qme in he eqtshes
NOde he pat nes n he irm
Na me Ake king Queen
ndeix able
Empas E mp xes5 Eanpie Sult bl måhid bod
aLlowed c aim o set o
od Jndi.ccde bane ti on bads on aqe, 0 apoual Ece pots
O 90ud, no alowed unleS3 Co nseed n Thxd osu can sue fhs pism

wkdn by Ce ntsa geut asun es Can ue o

dinol u on af rm 034 o
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 Important Questions & Topics of The Indian Partnership Act.
1932
Unit- 1: General Nature of a Partnership
Q.1 "Whether a group of persons is or is not a firm, or whether a person is or not a partner
ina firm." Explain the mode of determining existence of partnership as per the Indian
Partnership Act, 1932? [May 19, 4 Marks]
Q.2 Mr. M, Mr. N and Mr. P were partners ina firm, which was dealing in refrigerators.

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On 1st October, 2018, Mr. P retired from partnership, but failed to give public notice
of his retirement. After his retirement, Mr. M, Mr. N and Mr. P visited a trade fair

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and enquired about some refrigerators with latest techniques. Mr. X, who was exhibiting
his refrigerators with the new techniques was impressed with the interactions of Mr. P
and requested for the visiting card of the firm. The visiting card also included the name
of Mr. P as a partner even though he had already refired. Mr. X. supplied some

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refrigerators to the firm and could not recover his dues from the firm. Now, Mr. X wants
to recover the dues not only from the firm, but also from Mr. P.
Analyse the above case in terms of the provisions of the Indian Partnership Act, 1932

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and decide whether Mr. P is liable in this situation. [Nov 18, 3 Marks] CS LLM Arjun
Chhabra (Law Maven) Mo: 62 62 62 143 8
Related Question: Explain the provisions of the Indian Partnership Act, 1932 relating to
the creation of Partnership by holding out. [RTP Nov 201
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Q.3 What is the conclusive evidence of partnership? State the circumstances
when partnership is not considered between two or more parties. [May 18, 4 Marks] [MTP
Oct 19, 4 Marks]
Related Question: "Business carried on by all or any of them acting for all." Discuss the
statement under the Indian Partnership Act, 1932. [Jan 21 4 Marks]
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Q.4 State the differences between Partnership and Hindu Undivided Family. [RTP May
18]

Related Question: Distinguish between Partnerships vs. Hindu Undivided Family. Write any
two points. [MTP Oct 19]
Q.5 X and Y are partners in a partnership firm. X introduced A, a manager, as his partner
to Z. A remained silent. Z, a trader believing A as partner supplied 100 T.V sets to the
firm on credit. After expiry of credit period, Z did not get amount of T.V sets sold to
the partnership firm. Z filed a suit against X and A for the recovery of price. Advice Z
whether he can recover the amount from X and A under the Indian Partnership Act, 1932.
IRTP Nov 19]
Q.6 Explain the following kinds of partnership under the Indian Partnership Act, 1932:
()Partnership at will [Dec -20 2 Marks]
(i)Particular partnership [RTP May 20] IJan 21- 2 Marks] CS LLM Arjun Chhabra
(Law Maven) Mo: 62 62 62 143 8
Related Question: Who is a nominal partner under the Indian Partnership Act, 1932?

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What are his liabilities? [Jan 21- 2 Marks]
Q.7 "Partner indeed virtually embraces the character of both a principal and an agent".

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Describe the said statement keeping in view of the provisions of the Indian Partnership
Act, 1932. [RTP May 20]

Q.8 What is Partnership Deed and state the information contained therein? [MTP March 18,

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4 Marks] [MTP Oct 18, 4 Marks] [MTP April 19] CS LLM Arjun Chhabra (Law Maven) Mo:
62 62 62 143 8
Related Question: Ms. Lucy while drafting partnership deed taken care of few important

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points. What are those points? Also, give list of information to be included in partnership
deed? [MTP Oct 20 - 6 Marks]
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 Unit- 2
Q.1 When the continuing guarantee can be revoked under the Indian Partnership Act, 1932?
[Nov 19, 2 Marks]

OR

What do you mean by Goodwill as per the provisions of Indian Partnership Act, 1932?
Nov 19, 2 Marks]
Q.2 With reference to the provisions of Indian partnership Act, 1932 explain the various

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effects of insolvency of a partner. [Nov 19, 4 Marks] CS LLM Arjun Chhabra (Law Maven)
Related GQuestion: State the legal consequences of the following as per the provisions of the

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Indian Partnership Act, 1932:
Retirement of a partner
(i) Insolvency of a partner [RTP Nov 19]

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Q.3 Master X was introduced to the benefits of partnership of M/s ABC & Co. With the
consent of all partners. After attaining majority, more than six months elapsed and he failed
to give a public notice as to whether he elected to become or not to become a partner in the

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firm. Later on, Mr. L, a supplier of material to M/s ABC & Co., filed a suit against M/s ABC
& Co. for recovery of the debt due.

In the light of the Indian Partnership Act, 1932, explain:

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(i) To what extet X will be liable if he failed to give public notice after attaining
majority?
(i) Can Mr. L recover his debt from X? [RTP Nov 20] [Nov 19, 6 Marks]
Q.4 What is the provision related to the effect of notice to an acting partner of the firm as
per the Indian Partnership Act, 1932? [May 19, 2 Marks] CS LLM Arjun Chhabra (Law Maven)
OR

Discuss the provisions regarding personal profits earned by a partner under the Indian
Partnership Act, 1932? [May 19, 2 Marks] CS LLM Arjun Chhabra (Law Maven)
Q.5 M/s XYZ & Associates, a partnership firm with X, Y, Z as senior partners were engaged
in the business of carpet manufacturing and exporting to foreign countries. On 25th August,
2016, they inducted Mr. G, an expert in the field of carpet manufacturing as their partner.
On 10th January 2018, Mr. G was blamed for unauthorized activities and thus expelled from
the partnership by united approval of rest of the partners.
() Examine whether action by the partners was justified or not?

(i)What should have the factors to be kept in mind prior expelling a partner from the firm by
other partners according to the provisions of the Indian Partnership Act, 1932? [May 19
,6 Marks] [MTP Oct 20- 6 Marks]

Related Question: X, Y and Z are partners in a Partnership Firm. They were carrying their

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business successfully for the past several years. Spouses of X and Y fought in ladies club on
their personal issue and X's wife was hurt badly. X got angry on the incident and he convinced
Z to expel Y from their partnership firm. Y was expelled from partnership without any notice

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from X and Z. Considering the provisions of the Indian Partnership Act, 1932, state whether
they can expel a partner from the firm. What are the criteria for test of good faith in such
circumstances? [May 18, 6 Marks] [MTP April 19]

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Related Question: Ram & Co., a firm consists of three partners A, B and C having one third
share each in the firm. According to A and B, the activities of C are not in the interest of the
partnership and thus want to expel C from the firm. Advise A and B whether they can do so

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quoting the relevant provisions of the Indian Partnership Act, 1932. [RTP Nov 18]
Related Question: Comment on 'the right to expel partner must be exercised in good faith'
under the Indian Partnership Act, 1932. [Dec-20 2 Marks]
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Q.6 Though a minor cannot be a partner in a firm, he can nonetheless be admitted to the
benefits of partnership."
( Referring to the previsions of the Indian Partnership Act, 1932, state the rights which
can be enjoyed by a minor partner. [Nov 18, 4 Marks]

() A. State the liabilities of a minor partner both:

()Before attaining majority and
(i) After attaining majority. [Nov 18, 2 Marks] [MTP March 19, 6 Marks]

OR
B. State the legal position of a minor partner after attaining majority:
(When he opts to become a partner of the same firm.
 (i) When he decide not to become a partner. [Nov 18, 2 Marks]

Related Question: Whether a minor may be admitted in the business of a partnership firm?
Explain the rights ofa minor in the partnership firm. [RTP May 18] [MTP Oct 18, 6 Marks]
Q.7 Mr. A. Mr. B and Mr. C were partners in a partnership firm M/s ABC & Co., which is
engaged in the business of trading of branded furniture. The name of the partners was clearly
written along with the firm name in front of the head office of the firm as well as on letter
head of the firm. On 1st October, 2018, Mr. C passed away. His name was neither removed

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from the list of partners as stated in front of the head office nor from the letter-heads of
the firm. As per the terms of partnership, the firm continued its operations with Mr. A and
Mr. B as partners. The accounts of the firm were settled and the amount due to the legal

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heirs of Mr. C was also determined on 10th October, 2018. But the same was not paid to the
legal heirs of Mr. C. On 16th October, 2018, Mr. X, a supplier supplied furniture worth
20, 00,000 to M/s ABC & Co. M/s ABC & Co. Could not repay the amount due to heavy

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losses. Mr. X wants to recover the amount not only from M/s ABC & Co., but also from the
legal heirs of Mr. C.
Analyses the above situation in terms of the provisions of the Indian Partnership Act, 1932

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and decide whether the legal heirs of Mr. C can also be held liable for the dues towards Mr.
X. [Nov 18, 3 Marks]
Related Question: Ram, Mohan and Gopal were partnersin a firm. During the course of
partnership, the firm ordered Sunrise Ltd. to supply a machine to the firm. Before the machine
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was delivered, Ram expired. The machine, however, was later delivered to the firm. Thereafter,
the remaining partners became insolvent and the firm failed to pay the price of machine to
Sunrise Ltd.
Explain with reasons:
() Whether Ram's private estate is liable for the price of the machine purchased by the
firm?
i) Against whom can the creditor obtain a decree for the recovery of the price? [RTP May
19]
Related Question: M, N and P were partners in a firm. The firm ordered JR Limited to supply
the furniture. P dies, and M and N continues the business in the firm's name. The firm did
not give any notice about P's death to the public or the persons dealing with the firm. The
furniture was delivered to the firm after P's death. fact about his death was known to them
at the time of delivery. Afterwards the firm became insolvent and failed to pay the price of
furniture to JR Limited.
Explain with reasons:
(i) Whether P's private estate is liable for the price of furniture purchased by the firm?
(ii) Whether does it make any difference if JR Limited supplied the furniture to the firm
believing that all the three partners are alive? [Jan 21 6 Marks]

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Q.8 State the modes by which a partner may transfer his interest in the firm in favour of
another person under the Indian Partnership Act, 1932. What are the rights of such a

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transferee? [MTP March 18, 6 Marks] [MTP April 19, 6 Marks]
Q.9 A, B and C are partners in a firm. As per terms of the partnership deed, A is entitled
to 20 percent of the partnership property and profits. A retires from the firm and dies after
15 days. B and C continue business of the firm without settling accounts. Explain the rights

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of A's legal representatives against the firm under the Indian Partnership Act, 1932? [RTP
May 18] [RTP May 20]

Q.10 A, B and C are partners in a firm called ABC Firm. A, with the intention of deceiving

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D, a supplier of office stationery, buys certain stationery on behalf of the ABC Firm. The
stationery is of use in the ordinary course of the firm's business. A does not give the stationery
to the firm, instead brings it to his own use. The supplier D, who is unaware of the private
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use of stationery by A, claims the price from the firm. The firm refuses to pay for the price,
on the ground that the stationery was never received by it (firm). Referring to the provisions
of the Tndian Partnership Act, 1932 decide:
() Whether the Firm's contention shall be tenable?
i) What would be your answer if a part of the stationery so purchased by A was delivered
to the firm by him, and the rest of the stationery was used by him for private use,
about which neither the firm nor the supplier D was aware? [MTP March 18, 6 Marks]
[MTP Oct 18, 6 Marks]
Related Question: Mahesh, Suresh and Dinesh are partners ina trading firm. Mahesh, without
the knowledge or consent of Suresh and Dinesh borrows himself Rs. 50,000 from Ramesh, a
customer of the firm, in the name of the firm. Mahesh, then buys some goods for his personal
use with that borrowed money. Can Mr. Ramesh hold Mr. Suresh & Mr. Dinesh liable for the
loan? Explain the relevant provisions of the Indian Partnership Act, 1932. [MTP Oct 19,6
Marks]
Q.12 In the absence of any usage or custom of trade to the contrary, the implied authority
of a partner does not empower him to do certain acts. State the acts which are beyond the
implied authority of a partner under the provisions of the Indian Partnership Act, 1932?
[MTP Aug 18, 6 Marks] CS LLM Arjun Chhabra (Law Maven)
Q.13 A, are partners of a partnership firm ABC & Co. The firm is a dealer in office
B, and C
furniture. A charge of purchase and sale, B was in charge of maintenance of accounts
was in

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of the firm and C was in charge of handling all legal matters. Recently through an agreement
among them, it was decided that A will be in charge of maintenance of accounts and B will be
in charge of purchase and sale. Being ignorant about such agreement, M, a supplier supplied

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some furniture to A, who ultimately sold them to a third party. Referring to the provisionsof
the Partnership Act, 1932, advise whether M can recover money from the firm.
What be your advice in case M was having knowledge about the agreement? [MTP Aug 18,
will

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6 Marks] [MTP March 19, 6 Marks] CS LLM Arjun Chhabra (Law Maven)

Q.14 Subject to agreement by partners, state the rules that should be observed by the partners
in settling the accounts of the firm after dissolution under the provisions of the Indian

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Partnership Act, 1932. [MTP Aug 18, 4 Marks]
Q.15 What do you mean by "implied authority" of the partners in a firm? Point out the extent
of partner's implied authority in case of emergency. referring to the provisions of the Indian
Partnership Act, 1932. [RTP May 19]
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Q.16 P.GQ.R. and S are the partners in M/S PQRS & Co. a partnership firm which deals in
trading of Washing Machines of various brands.
Due to the conflict of views between partners, P & Q decided to leave the partnership firm and
started competitive business on 31st July., 2019, in the name of M/S PQ & Co. Meanwhile, R &|
S have continued using the property in the name of M/S PQRS & Co. in which P & Q also has a
share.
Based on the above facts, explain in detail the rights of outgoing partners as per the Indian
Partnership Act, 1932 and comment on the following:
() Rights of P&Q to start a competitive business.
(ii) Rights of P&Qregarding their share in property of M/S PQRS & Co. [Dec 20, 6 Marks]
Q.17 Explain in detail the circumstances which lead to liability of firm for misapplication by
partners as per provisions of the Indian Partnership Act, 1932. [Dec 20 4 Marks]
Q.18 Discuss the liability of a partner for the act of the firm and liability of firm for act of a |

partner to third parties as per Indian Partnership Act, 1932. [Jan 21 - 4 Marks]

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 Unit- 3
Q.1 "Dissolution of a firm is different from dissolution of Partnership". Discuss. [Nov 19, 4|
Marks] [May 18, 2 Marks]
Q.2 "Indian Partnership Act does not make the registration of firms compulsory nor does it
impose any penalty for non-registration." Explain. Discuss the various disabilitiesor
disadvantages that a non-registered partnership firm can face in brief? [May 19, 4
Marks] [May 18, 4 Marks] [MTP Oct 19, 4 Marks] [Dec-20, 2Marks] CS LLM Arjun Chhabra
(Law Maven)

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Related Question: What are the rights which won't be affected by Non-Registration of
Partnership firm? [Dec-20, 2Marks]
Q.3 State any four grounds on which Court may dissolve a partnership firm in case any partner

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files a suit for the same. [Nov 18, 4 Marks] [RTP May 20] CS LLM Arjun Chhabra (Law
Maven)
Q.4 What are the consequences of Non-Registration of a Partnership Firm? Discuss. [May

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18, Marks] [MTP Oct 19, Marks]
4 4
Q.5 A & Co. is registered as a partnership firm in 2015 with A, B and C partners. In 2016,
A dies. In 2017, B and C sue X in the name and on behalf of A & Co., without fresh

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registration. Decide whether the suit is maintainable. Whether your answer would be same if
in 2017 B and C had taken a new partner D and then filed a suit against X without fresh
registration? [RTP May 18] CS LLM Arjun Chhabra
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Related Question: P, X, Y and Z are partners in a registered firm A å Co. X died and P
retired. Y and Z filed a suit against W in the name and on behalf of firm without notifying
to the Registrar of firms about the changes in the constitution of the firm. Is the suit
maintainable? [RTP May 19)
Q.6 What is the procedure of registration of a partnership firm under the Indian Partnership
Act, 1932? [RTP May 20]
Q.7 When does dissolution of a partnership firm take place under the provisions of the Indian
Partnership Act, 1932? Explain. [MTP March 19, 4 Marks]