Question no.1 and 2

 1.Discuss whether the firm is dissolved in each situation with reference to Sections 39–43 of the Indian Partnership Act, 1932.

Answer

1. Mutual agreement — Section 40

Yes. A firm may be dissolved with the consent of all the partners or according to a contract between the partners. Therefore, if A, B and C mutually agree to dissolve the firm, it can be dissolved under Section 40. �

India Code

2. All partners except A become insolvent — Section 41

Yes. Section 41 provides for compulsory dissolution where all the partners, or all except one partner, are adjudged insolvent. Therefore, the firm will be compulsorily dissolved. �

India Code

3. Business becomes unlawful — Section 41

Yes. If an event occurs which makes it unlawful to carry on the firm's business or to carry it on in partnership, the firm is compulsorily dissolved. However, where the firm carries on separate lawful undertakings, illegality of one undertaking does not necessarily dissolve the firm in respect of the lawful undertakings. �

India Code

4. Expiry of fixed term — Section 42(a)

Yes. Subject to any contract between the partners, where a firm is constituted for a fixed term, it is dissolved on expiry of that term. �

India Code

5. Partnership at will — Section 43

Yes. A partnership at will may be dissolved by any partner giving notice in writing to all the other partners of his intention to dissolve the firm.

The firm is dissolved from:

the date mentioned in the notice; or

if no date is mentioned, from the date on which the notice is communicated.



Q2 . Explain the doctrine of “Holding Out” under Section 28 of the Indian Partnership Act, 1932. What are the essential conditions for its application? Is a person who represents himself as a partner liable to third parties even though he is not actually a partner? Explain with suitable examples.

Answer:

Section 28 of the Indian Partnership Act, 1932 deals with “Holding Out.” It provides that when a person, by words spoken or written or by conduct, represents himself, or knowingly permits himself to be represented, as a partner in a firm, he is liable as a partner to any person who has given credit to the firm on the faith of such representation.

Essential conditions

Representation: The person must represent himself, or knowingly allow himself to be represented, as a partner.

Representation may be by words or conduct: It can be express or implied.

Knowledge: Where the representation is made by another person, the alleged partner must knowingly permit it.

Third-party reliance: The third party must have given credit to the firm believing the representation.

Liability: The person is liable to that third party as though he were actually a partner.

Example

A is not a partner of XYZ Firm, but he knowingly allows the firm to represent him as a partner. B, believing A to be a partner, gives a loan to XYZ Firm. If the firm fails to repay the loan, A will be liable to B as a partner by holding out, subject to the requirements of Section 28.

Important point

Holding out does not make the person an actual partner of the firm. It creates liability


Comments

Post a Comment

Popular posts from this blog

Corner stone class no.2

    Topic---present continuous By adv.pankaj joshi इस काल में घटनाएं व‌र्तमान में घटित हो रही होती है Sub+is/am/are+V4+object V4----v1+ing----going,sleeping,eating, writing etc. यदि he,she,it,any singular कोई काम वर्तमान में कर रहा है तो is+v4 आयेगा यदि  you ,we ,they,any plural कोई काम वर्तमान में कर रहा है तो are+v4 आयेगा यदि I कोई काम वर्तमान में कर रहा है तो  am+V4 आयेगा  Sub+is/am/are+not+V4+oB ENGLISH   1.my choleric father is smoking Hubble bubble on cot in a commodious field. 2. Your diligent mother is grinding wheat with a quern in wee hours 3.my impish children are playing hide and seek game in searing sun 🌞. 4.my boozer neighbour is drinking like a fish 🐠 adjacent a sappy garden . 5.a  mendicant is grovelling before a rich person for two square meal a day . 6.a child labourer is work in a precarious industry for his bread and butter . 7.i am assaying of concrete proofs to send him gallows . 8.you are sacking him due to his laxity and ...
Read more

Corner stone class no.1

Image
      Topic no.1 ----tense no.1---present indefinite Sub+v1/v5+object ---affirmative sentence Sub+does not/do not+v1+object-----negative sentence  Explanation ---जब कर्ता he/she/it/any singular हो और वाक्य सकारात्मक हो तो v5  आयेगा   जब कर्ता he/she/it/any singular हो और वाक्य नकारात्मक हो तो  does not+v1आयेगा  1.He/she /it/any singular ---v5/does not+v1 V5---v1+es/s ********************** जब कर्ता I/you/we/they/any plural  हो और वाक्य सकारात्मक हो तो v1आयेगा और वाक्य नकारात्मक हो तो donot+v1 आयेगा । 2.you/we/they/I/any plural---v1/do not+v1 Simple sentences  1.an adroit doctor treats the patients in an expensive hospital. 2.the theist people worship in edifice temple. 3.a farmer/tiller reaps the crops with a sickle . 4.my neighbour sells spurious ghee to make a quick buck . 5.the people stroll in sappy garden in wee hours . 6.the children prank in jampacked class . 7. My friends toil from dawn to dusk to get the first rank /take the 🍰 ...
Read more

Practice session 3

 Translate the following sentences into English with appropriate grammar  वह जानबूझकर मेरी बातों को अनदेखा कर रहा है। क्या वे इस समय अदालत में गवाहों से जिरह कर रहे हैं? हम इस मामले के हर छोटे-से-छोटे पहलू की सावधानीपूर्वक जाँच कर रहे हैं। वह बार-बार अपना फैसला बदल रही है, इसलिए कोई उस पर भरोसा नहीं कर रहा है। क्या तुम यह साबित करने की कोशिश कर रहे हो कि तुम्हारा निर्णय सही है? 5 Choose the correct answer: 1. She ______ to school every day. A) go B) goes C) going D) gone 2. They ______ cricket on Sundays. A) plays B) is playing C) play D) played 3. My father ______ tea every morning. A) drink B) drinks C) drinking D) drank 4. We ______ our homework before dinner. A) finishes B) finish C) finished D) finishing 5. The sun ______ in the east. A) rise B) rises C) rose D) rising
Read more