Indian Partnership Act, 1932

Shiv Developers, an unregistered partnership firm, filed a suit for declaration and injunction alleging fraud and non‑payment of consideration in a sale of its share in a property to Aksharay Developers. The respondents moved to dismiss the plaint under Section 69(2) of the Indian Partnership Act, 1932, arguing that an…

The appellant, Saroj Aggarwal, was the widow of a partner who died in 1959. After his death a new partnership deed was executed, admitting her and an adopted son as partners. The deceased had unabsorbed speculation losses from earlier years. In the assessment year 1962‑63, the appellant claimed to set off those losses …

A decree for a construction work claim was passed against the State of Rajasthan and the partnership firm Sharma & Co. The State recovered the decree amount and sought execution against the firm’s securities, including a house owned by partner Smt. Dhanwanti Devi, who had earlier executed a will bequeathing the house t…

The plaintiff obtained a loan of Rs 70.30 lakh, secured by a cheque drawn in the name of a partnership firm, and filed a suit for recovery along with an application for attachment before judgment under Order XXXVIII Rule 5 CPC. The High Court rejected the attachment, holding that the loan was not for the benefit of the…

The appellant and several respondents were partners in an unregistered partnership firm and a suit for dissolution and accounts was filed by one partner. The partnership deed contained an arbitration clause, leading the appellant to obtain a stay of the suit under Section 34 of the Arbitration Act and to file a petitio…

The appellant, an unregistered partnership firm, entered into a construction contract with the respondent and later contested the respondent's claim in arbitration. The respondent argued that Section 69(3) of the Partnership Act, 1932 barred the firm from participating in arbitral proceedings because "other proceedings…

The assessee, a partnership firm of three partners, lost one partner on 12 January 1974. The partnership deed did not contain a clause allowing the firm to continue after a partner's death, so under Section 42 of the Partnership Act the firm dissolved on that date. The surviving partners formed a new partnership deed t…

The appellant, S.P. Gramophone Co., sought registration of its partnership under Section 26A of the Income Tax Act, 1922 for AY 1961‑62 after a fresh partnership deed added four new partners to the original two, who were disabled. The Income Tax Officer rejected the application, alleging that the new partners were mere…

Kamal Pushp Enterprises (appellant) had a contract with Gas Authority of India Ltd. and subcontracted the work to D.R. Construction Company (respondent), an unregistered partnership under the Partnership Act, 1932. A dispute led to arbitration under the Arbitration Act, 1940, and the arbitrator awarded in favour of the…

The plaintiffs, an unregistered partnership firm, sued the defendants for permanent injunction and damages alleging infringement of their registered trademark. The defendants moved to dismiss the suit under Order 7 Rule 11, arguing that Section 69(2) of the Partnership Act, 1932 barred any action by an unregistered fir…

Alka Gupta filed a second suit for accounts of a dissolved partnership, after having earlier obtained a decree for the balance price under a sale agreement with Narender Kumar Gupta. The Delhi High Court dismissed the second suit, holding it barred by Order 2 Rule 2 of the CPC, by constructive res judicata, and on the …

The appellant, Sachin Jaiswal, challenged a High Court clarification that the land and hotel building contributed by his late father to the partnership firm M/s Hotel Alka Raje constituted the firm's property under Section 14 of the Partnership Act, 1932. The father had purchased the land in 1965, entered into a partne…

The plaintiff‑respondent (Zeenath) appealed a High Court order that remanded her suit for cancellation of a sale deed and a prohibitory injunction back to the trial court for a fresh trial. The High Court had held that the evidence on record was insufficient and that material witnesses were not examined, thereby direct…

Dena Bank had taken a mortgage over the property of the partnership firm Mis Bhikhabhai Prabhudas Parekh & Co. and its partners. While the suit was pending, the State of Karnataka attached and auctioned the mortgaged property to recover arrears of sales tax. The trial court granted a decree to the bank but dismissed th…

The Karta of a Hindu undivided family (HUF) converted the family cloth business into a partnership with his son, who contributed only his skill and labour and no cash. The Income‑Tax Officer refused to register the firm, a decision upheld by the Appellate Tribunal and the Bombay High Court. The Supreme Court examined w…

The plaintiffs, heirs of some original partners of the partnership firm ‘Soorajmull Nagarmull’, filed a suit seeking declaration of entitlement to the firm’s assets, representation before authorities, injunctions, and dissolution of the firm. The defendants, heirs of the remaining original partners, contended that the …

The appellants, partners of a rice‑milling partnership, were convicted under the Essential Commodities Act, 1955 for failing to supply the levy rice required by the Haryana Rice Procurement (Levy) Order, 1979. They appealed, contending that the prosecution had not proved that they were in charge of the firm’s business …

Shreeram Finance Corporation, a partnership firm, sued Yasin Khan and his guarantor for breach of a hire‑purchase agreement after the latter defaulted on monthly hire charges. At the time of filing the suit (22 July 1968) the firm had recently altered its partnership composition: two partners had retired, a new partner…

The appellant, son and legal heir of a deceased partner in a partnership firm, sought appointment of an arbitrator under the arbitration clause of the partnership deed after the firm failed to render accounts. The Allahabad High Court dismissed the application, holding that the arbitration agreement did not bind the he…

The dispute involved a partnership firm where two of the three partners had died, and the legal heirs of one deceased partner sought to enforce an arbitration clause in the partnership deed to resolve a claim for rendition of accounts. The respondents argued that the heirs, being non‑signatories to the deed and without…

The appellant, V. Subramaniam, filed a suit for dissolution of an unregistered partnership firm against Rajesh Raghunandra Rao. The defendant argued that the suit was barred by Section 69(2A) of the Indian Partnership Act, 1932, inserted by the Maharashtra Amendment Act of 1984, which restricts unregistered firms from …

Progressive Financers, a partnership of five persons including a minor admitted to the benefits of the firm, applied for registration under Section 184 of the Income Tax Act, 1961 for AY 1967-68 and for renewal for AY 1969-70 and 1970-71. The Income Tax Officer rejected the application, treating the firm as an Associat…

The case involved Malabar Fisheries Co., a partnership dissolved in 1963, which had claimed development rebate under section 33 of the Income‑Tax Act for machinery installed before dissolution. The Income‑Tax Officer withdrew the rebate under section 34(3)(b) and section 155(5), contending that the distribution of the …

The partnership firm Modern Hotel held an FL‑3 licence to run a bar, but renewal was denied because a partner had earlier incurred abkari dues and the proviso to Rule 13A(5) of the Foreign Liquor Rules required that at least 50 % of such arrears be cleared. The firm paid additional sums over several years and later, un…

The plaintiff, a partner in a firm whose head office was in Bombay and factory in Mandsaur, filed a suit in the Chandigarh Court seeking dissolution of the partnership and rendition of accounts, alleging that the firm had a branch office in Chandigarh. The defendants contended that the Chandigarh Court lacked territori…

The Supreme Court considered a dispute arising from the dissolution of an unregistered partnership, Krishna Motor Service, where the respondent, a partner without capital contribution, sought arbitration under Section 20 of the Arbitration Act, 1940. The partnership was not registered as required by Section 69 of the P…

The appellants, legal heirs of the late partner Jai Narayan Misra, sought execution of a 1993 decree against the respondents, heirs of the late partner Hashmatunnisa Begum, arising from a partnership for real‑estate development in Paigah Compound. The decree restrained the respondents from developing a disputed portion…

The partnership firm V.H. Patel & Co. and its members sued former partner H.H. Patel for declaration that a retirement deed was void and for injunction against his use of three trademarks. The parties entered a consent order referring all disputes arising from the partnership agreement, retirement deed, trademark use a…

The Supreme Court examined whether a suit for dissolution and accounts filed by a founding partner of M/s Paramount Builders was barred by Section 69(2A) of the Partnership Act, as amended by Maharashtra. The firm, originally registered in 1980, had admitted the widow of a deceased partner in 1986 without notifying the…

Sri Jagatram Ahuja, a retiring partner of a firm, executed a release deed whereby he transferred his rights in the firm's assets to his brother for Rs. 3,00,000, although the market value of his share was higher. The Gift Tax Officer treated the excess as a gift and levied tax, a decision upheld by the Commissioner (Ap…

The plaintiff, RAKHEJA ENGINEERS, filed a commercial suit for recovery of money without seeking urgent interim relief. The defendant, M/S. PATIL AUTOMATION, moved to reject the plaint under Order VII Rule 11 of the CPC, arguing that the suit violated Section 12A of the Commercial Courts Act, 2015, which mandates pre‑in…

The appellant and respondent both applied for a stage‑carriage permit. The Regional Transport Authority (RTA) awarded marks based on the date of application, granting the permit to the appellant. The respondent appealed, and the State Transport Appellate Tribunal (STAT) set aside the RTA’s order, holding that the date …

The appellant, Mis Arvind Constructions Co. Pvt. Ltd., entered into a 1991 agency agreement and irrevocable power of attorney with Mis Kalinga Mining Corporation, a partnership firm originally registered in 1949 and later re‑registered in 2005 under the same name. After the agreement expired in 2006, disputes arose and…

The appellant, a partnership firm, made a voluntary disclosure under the Voluntary Disclosure of Income Scheme, 1997 and received a certificate of immunity. Later, a search and seizure operation on the firm’s partners uncovered undisclosed income that the firm had failed to reveal in its VDIS application. The Commissio…

Pamuru Vishnu Vinodh Reddy (the plaintiff) retired from the partnership firm Vijay Mahal Theatre on 5 April 1971 by selling his 25% share, but the other partners failed to pay the agreed consideration. After his death, his son filed a suit for dissolution and accounting of the partnership assets. The trial court appoin…

The petitioners, partners of an unregistered partnership firm, filed a suit seeking recovery of Rs 30 lakhs from another partner of the same firm. The trial court held the suit maintainable, but the High Court reversed, invoking Section 69(1) of the Indian Partnership Act, 1932, which bars suits by partners of an unreg…

The respondent, a partner of a dissolved firm, filed a criminal complaint alleging that the appellants, partners of another firm, conspired to deprive him of his share by cancelling the partnership deed without following proper dissolution procedures, invoking sections 405 and 420 of the Indian Penal Code. The partners…

Two brothers, Madhavan and Bahuleyan, formed a partnership and were co‑owners of a property. Madhavan died, causing the partnership to dissolve. The legal heirs of Madhavan sold the property to Krishnan (predecessor in interest of the respondents). A third party later obtained a decree against the dissolved firm and th…

The appellant, Dhanasingh Prabhu, advanced a loan of Rs.21 lakh to the respondents who were partners of the partnership firm “Mouriya Coirs”. The respondents issued a cheque in the name of the firm which was dishonoured, prompting the appellant to serve a statutory notice under Section 138 of the Negotiable Instruments…

The dispute arose when Indian Oil Corporation Limited (IOCL) stopped supplying kerosene to a partnership firm after one of its three partners died, despite the partnership deed stating that death would not dissolve the firm. The partnership filed a writ petition seeking a mandamus directing IOCL to continue supply unti…

The widowed wife and children of the deceased Murlidhar Hemdev claimed a right to specific plots in a Thane development, alleging that a registered rectification deed admitted their title and that a release deed dated 27‑03‑1979 was forged. The builder, having obtained sale agreements from various partners, argued he w…

The case concerned a partnership formed in Pondicherry in 1962 among the father and his sons, later continued by the sons after the father's retirement. In 1978 the respondent sued for dissolution of the partnership and accounting, claiming it was a partnership at will, while the appellants contended that the deed, gov…

The brothers Shreedhar Govind Kamerkar (appellant) and Yesahwant Govind Kamerkar (respondent) entered into a partnership in 1971 that was dissolved in 1977. The dispute concerned whether the tenancy rights to a premises in Navalkar Building, used for the Deepak Provision Store and later for Shree Medico, formed part of…

Mageba Bridge Products Private Limited sued M/s Trade Centre for recovery of money based on several unpaid bills. The trial court dismissed the suit on the ground that the plaintiff was not a registered partnership firm, but the Calcutta High Court reversed that finding, accepting the memorandum of registration and awa…

Pratibha Rani, an estranged wife, filed a criminal complaint under s.406 IPC alleging that her husband Suraj Kumar, his father, brothers and brother‑in‑law had misappropriated her stridhan (dowry) worth Rs.60,000 that was entrusted to them at the time of marriage. The Punjab & Haryana High Court quashed the complaint u…

The appellants, clearing and forwarding agents for Balsara Hygiene Products Ltd., obtained an ex‑parte injunction that allowed them to sell the respondent's goods, resulting in sales worth Rs 32.4 lakhs. The suit was later dismissed on the ground of non‑registration of the partnership under Section 69(2) of the Indian …

Six brothers who were partners in two firms entered into arbitration to resolve disputes. The arbitrators awarded a division of the firms' assets, including immovable properties, among the brothers upon dissolution. A Single Judge ordered the award to be registered before it could be made a rule of court; the Division …

Sunil J. Kinariwala, a partner in a firm, created a trust and assigned fifty percent of his ten percent partnership share to the trust, claiming that the income was diverted at source and therefore not assessable in his total income. The Income Tax Officer held the assignment to be an application of income and included…

The case concerned two registered partnership firms in which a partner died during the previous year. In the first firm, the partnership deed expressly provided that the firm would not dissolve on a partner's death, and the deceased partner's son was admitted as a new partner without executing a fresh deed. The Supreme…

The Supreme Court examined whether a partnership firm could claim a tax deduction for a commission of Rs. 28,579 paid to Rashiklal, who was a partner in the firm but also the Karta of a Hindu Undivided Family (HUF). The firm argued that Rashiklal acted only as a nominee of the HUF, so the payment should not fall within…

The Bank of Baroda had granted a loan to the partnership firm Global Packaging, which issued three cheques that were later dishonoured for insufficient funds. A complaint under Section 138 read with Section 141 of the Negotiable Instruments Act was filed against the authorised signatory Simaiya Hariramani and his partn…

Syndicate Bank sued the partnership firm R.S.R. Engineering Works and its partners for repayment of loans. The partnership was dissolved and one partner (respondent 4) claimed to have taken over the entire liability, seeking to discharge the retiring partners (respondents 2 and 3). The trial court and High Court decree…

Nareshchandra Kantilal, a 28% partner in a firm, died and the accountable person filed an estate duty return that omitted the value of his share in the firm's goodwill, citing a partnership deed clause that the deceased had no right in goodwill. The Assistant Controller and Appellate Controller held that the goodwill s…

The Supreme Court examined a dispute among partners of the unregistered liquor‑trading firm Mis Ashok Traders, where a partner of Group A sought an interim order under Section 9 of the Arbitration and Conciliation Act, 1996 for the appointment of a receiver. The trial court dismissed the application on the ground that …

The landlord sought eviction of a long‑term tenant under Section 21(1) of the Karnataka Rent Control Act, claiming bona‑fide need for occupation and rent arrears. The tenant argued that the landlord had entered into a sale agreement with a partnership firm of which the tenant was a partner, invoking Section 53‑A of the…

The landlord, a partnership firm, sued its former tenant for possession of premises after a 21‑year lease expired. The partnership was unregistered when the suit was filed, raising a bar under Section 69(2) of the Partnership Act. The trial court and High Court held the suit maintainable and granted possession. On appe…

Mahabir Cold Storage, a partnership firm newly constituted after the original firm Prayagchand & Hanumanmal took on Periwal & Co. as a partner, claimed a development rebate for machinery installed by the original firm in 1959‑60. The claim was made in the 1962‑63 assessment year. The issue was whether the new firm, a s…

The respondent, Arunagiri Chettriar, retired from a partnership firm in 1963 and later the firm was dissolved. The Income Tax Officer issued a notice that the respondent was jointly and severally liable for tax arrears of the firm for assessment years 1962-63 and 1963-64, arguing that liability attaches to any partner …

The appellants, partners of an Indian law firm, were engaged by a German corporation and, through London solicitors, allowed a UK barrister, Mr. Blanco White, to appear in three Calcutta High Court suits. Although the firm did not brief or pay the barrister, the Income Tax Officer treated them as agents under section 1…

The appellant, K.P.A. Vellayappa Nadar, was a partner in a firm formed in 1954. In February 1970, due to his old age, the partners mutually dissolved that firm and settled accounts, and a new partnership was created on 15 February 1970 without the appellant. After the death of one partner in 1972, the respondents filed…

Gammon India Ltd. and Atlanta Infrastructure Ltd. formed a joint venture (Gammon‑Atlanta JV) to bid for a National Highways Authority of India (NHAI) road contract, which was awarded to the JV. Gammon imported a concrete batching plant and claimed exemption from customs duty under Notification No. 17/2001 (Condition 38…

The appellant, Helper Girdhb... (a tenant), was sued for unlawful subletting of premises leased for cloth manufacturing. He claimed the premises were used by a genuine partnership (Bharat Neon Signs) of which he was a partner, and therefore no subletting occurred. The trial court found subletting and decreed possession…

The complainant, a registered partnership firm, filed a complaint under Section 138 of the Negotiable Instruments Act alleging that a cheque issued by a business concern named Fine Tubes was dishonoured. The complaint named several persons, including the appellant who was described as "in charge, Manager, Director" of …

A partnership of four family members was dissolved and the partners' residual assets were allocated by an arbitration award dated 2 October 1972. Some partners objected to the award under Section 30 of the Arbitration Act, 1940, contending that the award needed to be registered under Section 17 of the Registration Act,…

The case involved the legal representatives of a deceased plaintiff (appellants) and the legal representatives of a deceased defendant (respondents) in a dispute over a partnership formed to construct a cinema theatre. The partnership deed contained a clause stating that death of a partner would not dissolve the firm, …

The respondent sought appointment of an arbitrator under Section 20 of the Arbitration Act, 1940, invoking Clause 11 of a partnership deed of "Gupta Bus Service" dated 5 July 1960. The appellants objected, arguing that the partnership was unregistered and therefore barred by Section 69(3) of the Partnership Act, 1932, …

Konkan Trading Co. filed a suit which was withdrawn by the trial court on the condition that it pay Rs.100 costs and was given liberty to file a fresh suit under Order XXIII Rule 1(3) of the CPC. The fresh suit was filed before the costs were paid; the plaintiff later deposited the costs after obtaining the trial court…

Messrs K. Kelukutty, a timber partnership, and Messrs K.K.K. Sons Saw Mills, a saw‑dust partnership, had identical partners. The Sales Tax Officer included the saw‑dust turnover in the timber firm’s assessment, but the Sales Tax Appellate Tribunal allowed the firm’s appeal and remanded for fresh consideration. The Kera…

The respondents, a registered partnership firm, filed a suit to recover Rs. 58,880 on a promissory note dated 1 April 1960. During the pendency of the suit one of the partners died, and the trial court dismissed the suit on the ground that the deceased partner’s legal representatives had not been joined as parties. The…

The landlord, ARM Group Enterprises Ltd., owned premises that were leased to Allenberry & Co., who gave notice of surrender on 31‑Aug‑1953 but failed to hand over vacant possession. The tenant vacated under a compromise decree that reserved the landlord's right to evict any sub‑tenants. The restaurant Waldorf, initiall…