Partnership

Question 1

Supreme Court held two essentials for creation of partnership-
1. An agreement to share the profits or losses of the business.
2. The business must be carried out by all, or by an agent on behalf of all of them.

Answer 1

K D Kamath & Co. v. CIT-

Question 2

After a partner has retired no liability towards the third party can be fixed for the acts done after retirement. If such partner is not known to third party, then the requirement of notice is also done away with.

Answer 2

M/s Glorious Plastics Ltd v Laghate Enterprises

Question 3

A partner of a firm is in the same position as a co-owner of the joint property in relation to other co-owners. In the absence of a special agreement, neither a partner separately owns or has the exclusive right of possession of, any particular article of partnership property, nor does either partner own any proportional part of any partnership property, but each has dominion over the whole article and over the entire partnership property. Thus, a document relinquishing rights in favour of a former partner can only be a release and not a transfer.

Answer 3

Board of Revenue UP v. Auto sales-

Question 4

criminal complaint. Thus, complaint for dishonour of cheque can be filed u/S 138 of NI Act by the partner of an unregistered firm.

Answer 4

Beacon Industries vs Anupam Ghosh-

Question 5

Dissolution on just and equitable grounds and not as per partnership deed- dispute cannot be referred to arbitration as per partnership deed.

Answer 5

B K Kapoor v Tajinder Kapoor

Question 6

Separate legal entity can be attributed to a partnership under certain statutes (ex. Income Tax

Answer 6

Dena Bank v. Bhikhabhai Parbhudas Parkeh and Co. & ors