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Questions and Answers
What is the right of partners regarding business after dissolution?
What is the right of partners regarding business after dissolution?
- To continue operations without restrictions.
- To elect a new managing partner.
- To form a new partnership immediately.
- To have the business wound up. (correct)
What is meant by 'personal profits earned after dissolution'?
What is meant by 'personal profits earned after dissolution'?
- Salaries drawn by the partners after dissolution.
- Profits solely for charitable donations.
- Profits made through separate business activities post-dissolution. (correct)
- Profits from the liquidation of the partnership.
Which of the following is true regarding the sale of goodwill after dissolution?
Which of the following is true regarding the sale of goodwill after dissolution?
- Goodwill is automatically forfeited upon dissolution.
- Goodwill may be sold under specific terms. (correct)
- Goodwill can be sold only to former partners.
- Goodwill cannot be sold after dissolution.
What is a consequence of the non-registration of a partnership?
What is a consequence of the non-registration of a partnership?
What is the purpose of the appointment of a registrar of firms?
What is the purpose of the appointment of a registrar of firms?
What does 'penalty for furnishing false particulars' involve?
What does 'penalty for furnishing false particulars' involve?
What is required for partnership registration to be considered valid?
What is required for partnership registration to be considered valid?
Which section relates to the mode of settlement of accounts between partners?
Which section relates to the mode of settlement of accounts between partners?
What is the penalty for failing to send a statement to the Registrar within the specified period?
What is the penalty for failing to send a statement to the Registrar within the specified period?
What is the maximum imprisonment term for signing a false statement under this Chapter?
What is the maximum imprisonment term for signing a false statement under this Chapter?
What is required for the Registrar to refuse amendments in the records of a firm?
What is required for the Registrar to refuse amendments in the records of a firm?
What happens if a partner of a firm knows that particulars are false or incomplete?
What happens if a partner of a firm knows that particulars are false or incomplete?
According to Section 70A, who has the power to amend the maximum fees specified in Schedule I?
According to Section 70A, who has the power to amend the maximum fees specified in Schedule I?
When do notifications regarding changes in maximum fees take effect?
When do notifications regarding changes in maximum fees take effect?
What must the court provide when imposing a fine for furnishing false particulars?
What must the court provide when imposing a fine for furnishing false particulars?
Which of the following is a consequence of not informing the Registrar in time?
Which of the following is a consequence of not informing the Registrar in time?
What is the maximum fee for a Statement under section 58(1)?
What is the maximum fee for a Statement under section 58(1)?
Which document has a maximum fee of Fifteen rupees?
Which document has a maximum fee of Fifteen rupees?
What remains unaffected by the repeal of the Act?
What remains unaffected by the repeal of the Act?
What is the maximum fee for the Inspection of the Register of Firms?
What is the maximum fee for the Inspection of the Register of Firms?
How much is charged for copies from the Register of Firms?
How much is charged for copies from the Register of Firms?
Which of the following is NOT expressly mentioned as remaining unaffected?
Which of the following is NOT expressly mentioned as remaining unaffected?
What is the fee for an Intimation under section 61?
What is the fee for an Intimation under section 61?
Which of the following fees is higher?
Which of the following fees is higher?
What is required for a partner to sue for the dissolution of a firm?
What is required for a partner to sue for the dissolution of a firm?
Who is exempt from needing firm registration to file a suit after dissolution?
Who is exempt from needing firm registration to file a suit after dissolution?
What types of firms are excluded from the regulations mentioned in subsection (2A)?
What types of firms are excluded from the regulations mentioned in subsection (2A)?
Under what condition can a claim of set-off not require firm registration?
Under what condition can a claim of set-off not require firm registration?
What is true regarding suits or claims not exceeding one hundred rupees?
What is true regarding suits or claims not exceeding one hundred rupees?
What governs the actions of an official receiver in relation to property of an insolvent partner?
What governs the actions of an official receiver in relation to property of an insolvent partner?
What condition is mentioned regarding firms operating outside certain territories?
What condition is mentioned regarding firms operating outside certain territories?
What is the consequence if current partners are not listed in the Register of Firms when filing a suit?
What is the consequence if current partners are not listed in the Register of Firms when filing a suit?
What is the liability of a firm when a partner causes loss or injury to a third party while acting in the ordinary course of business?
What is the liability of a firm when a partner causes loss or injury to a third party while acting in the ordinary course of business?
Who is liable if a partner misapplies money or property received from a third party while acting within his apparent authority?
Who is liable if a partner misapplies money or property received from a third party while acting within his apparent authority?
What is the consequence of a partner representing himself as part of a firm, regardless of his knowledge of the representation?
What is the consequence of a partner representing himself as part of a firm, regardless of his knowledge of the representation?
What does a transfer of a partner's interest in the firm entitle the transferee to?
What does a transfer of a partner's interest in the firm entitle the transferee to?
Which scenario allows for the firm to continue using a deceased partner's name without liability for the deceased's actions?
Which scenario allows for the firm to continue using a deceased partner's name without liability for the deceased's actions?
What are minors entitled to when admitted to the benefits of a partnership?
What are minors entitled to when admitted to the benefits of a partnership?
What must a partner do to legally bind the firm in a contract?
What must a partner do to legally bind the firm in a contract?
What happens to the rights of partners if a partnership is dissolved?
What happens to the rights of partners if a partnership is dissolved?
Study Notes
The Indian Partnership Act 1932
- The** Indian Partnership Act of 1932**, governs partnerships within India.
- Section 1 defines the Act's name, applicability (covers all of India except Jammu and Kashmir), and date of commencement.
- Section 27 states that the firm is liable for any loss or injury caused to a third party due to the wrongful acts or omissions of a partner, if done in the ordinary course of business, or with the authority of other partners.
- Section 28 deals with "holding out", which is when someone represents themselves as a partner or allows others to do so. This section states if someone gives credit to the firm based on this representation, the person who represented themselves as a partner is liable, even if they didn't know the representation reached the person giving credit.
- Section 29 explains the rights of a transferee of a partner's interest:
- While the firm continues, the transferee has no right to interfere in the business, require accounts, or inspect the books.
- They are only entitled to receive the transferring partner's share of profits.
- Upon dissolving the firm or the transferring partner ceasing to be a partner, the transferee is entitled to receive the transferring partner's share of the firm's assets, along with an account from the dissolution date.
- Section 30 deals with minors admitted to the benefits of partnership. This section states that no suit for dissolution, accounts, or realization of property can be instituted unless the firm is registered and the person suing is shown as a partner in the Register of Firms. This requirement doesn't apply to suits by heirs or legal representatives of a deceased partner who are seeking accounts or property from a dissolved firm.
- *Note - This section applies to claims for set-off, but does not affect firms with durations of less than 6 months, firms with capital less than 2000 rupees, or powers of court officials to realize the property of an insolvent partner.
Registration of Firms
- Sections 56 - 74 deal with the registration of partnerships.
- Section 59 addresses registration procedures.
- Section 59A allows for late registration with a penalty.
- Section 60 requires the recording of alterations in firm names and the nature of the business.
- Section 61 necessitates the noting of breaching (closing and opening) of firm activities
- Section 62 deals with noting changes in the partners' names and addresses.
- Section 63 addresses recording changes in a firm and dissolution of the firm.
- Section 64 concerns the rectification of mistakes in the register.
- Section 65 allows the court to amend the register.
- Section 66 deals with inspection of the register and filed documents.
- Section 67 provides for the grant of copies.
- Section 68 sets out rules of evidence.
- Section 69 outlines the consequences of non-registration, including:
- Section 69A states the penalty for not sending statements, intimations, or notices to the Registrar within the timeframes specified in Sections 60, 61, 62, or 63. The penalty is a fine that can reach 10 rupees per day, decided by the Registrar.
- Section 70 outlines the penalty for providing false particulars in statements, amending statements, notices, or intimations. The penalty is imprisonment for up to one year, a fine, or both. The fine must be at least 1000 rupees.
- Section 70A outlines the maximum fees payable under the Act and rules, as specified in Schedule I. The State Government can vary these fees as needed, as long as they do not exceed the maximum fees.
- Section 71 details the power to make rules.
- Section 72 explains the process of giving public notice.
- Section 73 outlines repeals made by the Act.
- Section 74 details savings, meaning exceptions to repealed acts.
Schedules
- Schedule I (Section 70A) sets out the maximum fees for various documents and actions under the Act.
- Schedule II outlines enactments repealed by the Repealing Act, 1938.
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Description
This quiz explores key sections of The Indian Partnership Act of 1932, focusing on its applicability, liability of firms, and rights of partners and transferees. It covers essential provisions such as 'holding out' and the responsibilities of partners in a partnership. Test your understanding of these important legal concepts governing partnerships in India.
