- Can a partner be expelled? If so, how? Which factors should be kept in mind prior to expelling a partner from the firm by the other partners according to the provision of Indian Partnership Act, 1932?
[2022 December – 6 Marks]
- “Indian Partnership Act does not make the registration of firm’s compulsory nor does it impose any penalty for non-registration.” In light of the given statement, discuss the consequences of non-registration of the partnership firms in India. Also, explain the rights unaffected due to non-registration of firms.
[2022 December – 6 Marks]
- What is the difference between partnership and co-ownership as per the Indian Partnership Act, 1932?
[2022 December – 4 Marks]
- What do you mean by ‘Partnership for a fixed period’ as per the Indian Partnership Act, 1932?
[2022 May – 2 Marks]
Answer :
Partnership for a fixed period (Indian Partnership Act, 1932) : Where a provision is made by a contract for the duration of the partnership, the partnership is called ‘partnership for a fixed period’. It is a partnership created for a particular period of time. Such a partnership comes to an end on the expiry of the fixed period. - Can a minor become a partner in a partnership firm? Justify your answer and also explain the rights of a minor in a partnership firm.
[2022 May – 4 Marks]
Answer :
(ii) Minor as a partner: A minor is not competent to contract. Hence, a person who is a minor according to the law to which he is subject may not be a partner in a firm, but with the consent of all the partners for the time being, he may be a admitted to the benefits of partnership.Rights of a minor in a partnership firm:
(i) A minor partner has a right to his agreed share of the profits and of the firm.
(ii) He can have access to, inspect and copy the accounts of the firm.
(iii) He can sue the partners for accounts or for payment of his share but only when severing his connection with the firm, and not otherwise.
(iv) On attaining majority, he may within 6 months elect to become a partner or not to become a partner. If he elects to become a partner, then he is entitled to the share to which he was entitled as a minor. If he does not, then his share is not liable for any acts of the firm after the date of the public notice served to that effect. - M/s ABC Associates is a partnership firm since 1990. Mr. A, Mr. B and Mr. C were partners in the firm since beginning. Mr. A, being a very senior partner of aged 78 years transfers his share in the firm to his son Mr. Prateek, a Chartered Accountant. Mr. B and Mr. C were not interested that Mr. Prateek join them as partner in M/s ABC Associates. After some time, Mr. Prateek felt that the books of accounts were displaying only a small amount as profit despite a huge turnover. He wanted to inspect the book of accounts of the firm arguing that it is his entitlement as a transferee. However, the other partners believed that he cannot challenge the books of accounts. Can Mr. Prateek, be introduced as a partner if his father wants to get a retirement? As an advisor, help them resolve the issues applying the necessary provisions from the Indian Partnership Act, 1932.
[2022 May – 6 Marks]
- (b) Explain the grounds on which court may dissolve a partnership firm in case of any partner files a suit for the same.
[2022 May – 4 Marks]
- Define partnership and name the essential elements for the existence of a partnership as per the Indian Partnership Act, 1932. Explain any two such elements in detail.
[2021 December – (3 + 3 = 6 Marks)]
- State whether the following are partnerships:
(i) A and B jointly own a car which they used personally on Sundays and holidays and let it on hire as taxi on other days and equally divide the earnings.
(ii) Two firms each having 12 partners combine by an agreement into one firm.
(iii) A and B, co-owners, agree to conduct the business in common for profit.
(iv) Some individuals form an association to which each individual contributes ` 500 annually. The objective of the association is to produce clothes and distribute the clothes free to the war widows.
(v) A and B, co-owners share between themselves the rent derived from a piece of land.
(vi) A and B buy commodity X and agree to sell t e commodity with sharing the profits equally.[2021 December – (3 + 3 = 6 Marks)]
- “Sharing in the profits is not conclusive evidence in the creation of partnership”.
Comment.[2021 December – 4 Marks]
- Define Implied Authority. 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?
[2021 July – 6 Marks]
- Mr. M is one of the four partners in M/s XY Enterprises. He owes a sum of ` 6 crore to his friend Mr. Z which he is unable to pay on due time. So, he wants to sell his share in the firm to Mr. Z for settling the amount.In the light of the provisions of the Indian Partnership Act, 1932, discuss each of the following:
(i) Can Mr. M validly transfer his interest in the firm by way of sale?
(ii) What would be the rights of the transferee (Mr. Z) in case Mr. M wants to retire from the firm after a period of 6 months from the date of transfer ?[2021 July – 6 Marks]
- 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 Partnership Act, 1932.
[2021 July – 4 Marks]