Liability of partnership firm giving collateral security

787 votes

The Indian Partnership Act, 1932 (the Act) was enacted by the Parliament repealing the relevant sections from the Indian Contract Act, 1872 keeping in mind the conditions and the special nature of business in India [1] . It was thought proper to define and amend the law relating to partnership [2] . Registration of the partnership is a very important area which has been dealt in Chapter VII of the Act, and due to its special nature, that the disabilities resulting from non-registration came in to effect a year after the Act [3] .Chapter VII of the Act deals with ‘Registration of Firms’ of which sections 56 to 65 deals with the procedure for registration. Section 66, relates to inspection of register, section 67 to grant of copies to ‘any person’ and section 68 with ‘rules of evidence’. The purpose of these provisions is to protect the interest of those who deal with partnership firms in various commercial transactions. Third parties who deal with a firm on its name or with a partner or managing partner as representative of the firm must be in a position to know who the partners are and what are their respective shares in the partnership, the details, if any, as to the capital investment by partners, and the details, if any, of the partnership property. That would enable them to have an idea of the competence, status and solvency of the partners of the firm. more details contact me thank you

Advocate Vedashree A LawRato