Page 86 - MA - May 2017

INDIAN PARTNERSHIP ACT

Section 49 of the

Indian Partnership

Act, 1932

be applied in payment of debts of the firm and hence
contrary to the very principles of partnership itself. We
discuss hereunder the import of Section 49 of the Act
I t is a settled principle that a Partnership firm and the ambiguity created thereby.
has no separate legal status from the Partners and that Section 4 of the Indian Partnership Act, 1932
all partners are individually liable for payment of the provides as under :
dues of the firm. However, Section 49 of the Act appears “Persons who have entered into partnership with
to limit the liability of a Partner by providing that the one another are individually called “partners” and
separate property of the collectively “a firm” and the name under which their
Partner shall be applied first business is carried on is called the “firm name”. Some of
in discharge of his separate the observations of the courts on this issue are as under:
debts and surplus if any shall In the case of Seodoyal Khemka Vs. Joharmull

Hareesh Kolichala
Chief Manager (Law)
Union Bank of India
Kolkata

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