Indian Partnership Act, 1932

Introduction
• Short title: S. 1 provides that it shall be called the Indian Partnership Act, 1932
• Long title: An Act to define and amend the law relating to partnership
• Prior to this Act, the provisions relating to partnership were found in Indian
Contract Act, 1872
• Contract Act was not a complete Code upon the branches of law to which it
related.
• Code/Act difference
• Codification of English law of Partnership in 1890 and the developments in
trade and commerce lead to the enactment of Indian Partnership Act, 1932
• Partnership Act not exhaustive vide section 3.
Definitions
• Section 2 deals with definitions
• Only 2(a) and 2(b) are significant for academic discussion
• ‘Act of firm’ u/s 2(a) 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
• Act of firm: only such acts of all partners, or of a partner or an agent, shall be regarded
as acts of the firm which gives rise to rights enforceable by or against the firm
• ‘business’ u/s 2(b) includes trade, occupation and profession
• The definition of business does not really define what a business shall mean rather it
just includes the things that can be considered as business
• Other definitions are formal in nature
Section 3
• The provisions of Indian Contract Act applies to firms if they are not
inconsistent with the express provisions of Partnership Act, 1932
• It means that the Partnership Act itself is not a complete Code and it
requires the provisions of Contract Act, 1872