Ram and Shyam are partners in a partnership firm named RS & Co. Gaurav, a renowned businessman, is their common friend. Ram introduced Gaurav to Sahil, a supplier to the firm, as h... Ram and Shyam are partners in a partnership firm named RS & Co. Gaurav, a renowned businessman, is their common friend. Ram introduced Gaurav to Sahil, a supplier to the firm, as his newly joined partner. Gaurav knowing that he is not a partner preferred to keep quiet on such an introduction. This information about Gaurav being a partner of the firm was shared by Sahil with another businessman Madhav. Next day, Sahil supplied the raw material on credit and Madhav lent 5 lakhs to the firm for a short period on the understanding that Gaurav is a partner of the firm. On due dates, the firm failed to discharge its liability towards both. Advise Gaurav, whether he is liable to Sahil and Madhav for the aforesaid liability of the firm.
Understand the Problem
The question is asking for legal advice about liability in a partnership context, specifically whether Gaurav can be held liable to Sahil and Madhav for debts incurred by the firm, given that he was incorrectly introduced as a partner.
Answer
Gaurav is not liable to Sahil and Madhav, as he was not a partner.
The final answer is that Gaurav is not liable to Sahil and Madhav, as he was never a partner and did not make any representation himself. Liability may arise if Gaurav affirms Ram's false introduction, but simply remaining silent does not make him liable under the Indian Partnership Act, 1932.
Answer for screen readers
The final answer is that Gaurav is not liable to Sahil and Madhav, as he was never a partner and did not make any representation himself. Liability may arise if Gaurav affirms Ram's false introduction, but simply remaining silent does not make him liable under the Indian Partnership Act, 1932.
More Information
Under the Indian Partnership Act, Gaurav would be liable if he held himself out as a partner or consented to being represented as one. In this case, he did neither, as simply remaining silent does not constitute consent or representation.
Tips
A common mistake is assuming silence implies consent. Legally, for partnership liability to arise, explicit consent or active representation as a partner is generally required.
Sources
AI-generated content may contain errors. Please verify critical information
