Question

Short notes on indian partnership act 1932

Answer 1

Hey!!

For a layman, a partnership is an association of people who have common objectives and goals. Even a business owned or managed by two or more people is termed as partnership. The idea of a partnership or such collaboration is that every member or partner contributes something which helps achieve an aim and is beneficial to all the members. A member may contribute money, skill or labour which in turn makes it easier to achieve the common objective. Thus, partnership is an arrangement where people consent to work together and advance their mutual interests. For example, two doctors may decide to work together on the same case as partners and share the fees.

Initially, partnership was governed by provisions contained in Sections 239 to 266 of chapter XI of the Indian Contract Act, 1872. These sections were repealed in 1930 and a new act – the Indian Partnership Act, 1932 was passed. The Act came in to force on the 1st of October 1932, except Section 69 which came into force on the 1st of October, 1933. It aims to define and amend the law relating to partnership. The Act extends to the whole of India except the state of Jammu and Kashmir. The Act is not exhaustive. Partnership is a special kind of contract and thus, the provisions of Indian Contract Act, 1872 also apply to a partnership firm unless the Indian Partnership Act provides otherwise.