{"id":1375,"date":"2024-04-09T12:21:06","date_gmt":"2024-04-09T06:51:06","guid":{"rendered":"https:\/\/lawtribune.in\/?p=1375"},"modified":"2024-04-09T12:21:07","modified_gmt":"2024-04-09T06:51:07","slug":"minors-admitted-to-the-benefits-of-partnership-the-indian-partnership-act-1932-law-notes-law-tribune","status":"publish","type":"post","link":"https:\/\/lawtribune.in\/?p=1375","title":{"rendered":"Minors admitted to the benefits of partnership \u2013 The Indian Partnership Act, 1932 Law Notes \u2013 Law Tribune"},"content":{"rendered":"\n<p><\/p>\n\n\n\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_83 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-1'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/lawtribune.in\/?p=1375\/#Introduction\" >Introduction<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-1'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/lawtribune.in\/?p=1375\/#Section_30_Minors_admitted_to_the_benefits_of_partnership\" >Section 30. Minors admitted to the benefits of partnership<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-1'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/lawtribune.in\/?p=1375\/#The_position_of_a_minor_in_a_firm_may_be_stated_as_follows_Rights_and_Liabilities_of_minor_in_a_firm\" >The position of a minor in a firm may be stated as follows (Rights and Liabilities of minor in a firm) :-<\/a><ul class='ez-toc-list-level-2' ><li class='ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/lawtribune.in\/?p=1375\/#Rights_of_a_minor\" >Rights of a minor :<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/lawtribune.in\/?p=1375\/#Disabilities_of_a_minor\" >Disabilities of a minor :<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/lawtribune.in\/?p=1375\/#Liabilities_of_a_minor\" >Liabilities of a minor :<\/a><\/li><\/ul><\/li><\/ul><\/nav><\/div>\n<h1 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Introduction\"><\/span><strong>Introduction<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h1>\n\n\n\n<p>In this post you will learn about provisions of Indian Partnership act with respect to Minors<\/p>\n\n\n\n<h1 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Section_30_Minors_admitted_to_the_benefits_of_partnership\"><\/span><strong>Section 30. Minors admitted to the benefits of partnership<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h1>\n\n\n\n<ul class=\"wp-block-list\">\n<li><em>A person who is a minor according to the law to which he is subject may not be a partner in a firm, but, with the consent of all the partners for the time being, he may be admitted to the benefits of partnership.<\/em><\/li>\n\n\n\n<li><em>Such minor has a right to such share of the property and of the profits of the firm as may be agreed upon, and he may have access to and inspect and copy any of the accounts of the firm.<\/em><\/li>\n\n\n\n<li><em>Such minors share is liable for the acts of the firm, but the minor is not personally liable for any such act.<\/em><\/li>\n\n\n\n<li><em>Such minor may not sue the partners for an account or payment of his share of the property or profits of the firm, save when severing his connection with the firm, and in such case the amount of his share shall be determined by a valuation made as far as possible in accordance with the rules contained in section 48:<\/em><\/li>\n<\/ul>\n\n\n\n<p><em>PROVIDED that all the partners acting together or any partner entitled to dissolve the firm upon notice to other partners may elect in such suit to dissolve the firm, and thereupon the court shall proceed with the suit as one for dissolution and for settling accounts between the partners, and the amount of the share of the minor shall be determined along with the shares of the partners.<\/em><em><\/em><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><em>At any time within six months of his attaining majority, or of his obtaining knowledge that he had been admitted to the benefits of partnership, whichever date is later, such person may give public notice that he has elected to become or that he has elected not to become a partner in the firm, and such notice shall determine his position as regards the firm:<\/em><\/li>\n<\/ul>\n\n\n\n<p><em>PROVIDED that, if he fails to give such notice, he shall become a partner in the firm on the expiry of the said six months.<\/em><em><\/em><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><em>Where any person has been admitted as a minor to the benefits of partnership in a firm, the burden of proving the fact that such person had no knowledge of such admission until a particular date after the expiry of six months of his attaining majority shall lie on the persons asserting that fact.<\/em><\/li>\n\n\n\n<li><em>Where such person becomes a partner-<\/em><\/li>\n\n\n\n<li><em>his rights and liabilities as a minor continue up to the date on which he becomes a partner, but he also becomes personally liable to third parties for all acts of the firm done since he was admitted to the benefits of partnership, and<\/em><\/li>\n\n\n\n<li><em>his share in the property and profits of the firm shall be the share to which he was entitled as a minor.<\/em><\/li>\n\n\n\n<li><em>Where such person elects not to become a partner,-<\/em><\/li>\n\n\n\n<li><em>his rights and liabilities shall continue to be those of a minor under this section up to the date on which he gives public notice,<\/em><\/li>\n\n\n\n<li><em>his share shall not be liable for any acts of the firm done after the date of the notice, and<\/em><\/li>\n\n\n\n<li><em>he shall be entitled to sue the partners for his share of the property and profits in accordance with sub-section (4).<\/em><\/li>\n\n\n\n<li><em>Nothing in sub-sections (7) and (8) shall affect the provisions of section 28.<\/em><\/li>\n<\/ul>\n\n\n\n<p>In India, as per the sec 11 of ICA a minor is not competent to contract and therefore he cannot be a partner of a firm (<em>Sanyasi Charan Mandal v. Krishnadhan Banerji<\/em>) and this has been recognised by express enactment in section 30(1). The minor, however, may be admitted to the benefits of partnership, and his share in the firms property is subject to the firm\u2019s debt. Creditor of a firm are not entitled to proceed against minor personally, being restricted only to his interest in the property of the firm. (see sub-section 3)<\/p>\n\n\n\n<p>Obviously, there cannot be a partnership of minors as they cannot enter in to a contract (<em>Shriram v. Gourishankar<\/em>)<\/p>\n\n\n\n<p><em>A.A. Khan v. Amer Khan<\/em> : There should be atleast two partners before a minor is admitted.<\/p>\n\n\n\n<p><em>I.T. Comm. V. Dwarkadas &amp; Co<\/em> : It was held that, section 30 did not render a minor a full partner and any document which made a minor full partner and goes beyond this section is not valid.<\/p>\n\n\n\n<figure class=\"wp-block-image size-full\"><img loading=\"lazy\" decoding=\"async\" width=\"542\" height=\"487\" src=\"https:\/\/lawtribune.in\/wp-content\/uploads\/2024\/04\/image.png\" alt=\"\" class=\"wp-image-1386\" srcset=\"https:\/\/lawtribune.in\/wp-content\/uploads\/2024\/04\/image.png 542w, https:\/\/lawtribune.in\/wp-content\/uploads\/2024\/04\/image-300x270.png 300w\" sizes=\"auto, (max-width: 542px) 100vw, 542px\" \/><\/figure>\n\n\n\n<p><\/p>\n\n\n\n<h1 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"The_position_of_a_minor_in_a_firm_may_be_stated_as_follows_Rights_and_Liabilities_of_minor_in_a_firm\"><\/span>The position of a minor in a firm may be stated as follows (Rights and Liabilities of minor in a firm) :-<span class=\"ez-toc-section-end\"><\/span><\/h1>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Rights_of_a_minor\"><\/span>Rights of a minor :<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>1. May be admitted to the benefits of partnership. (sub-sec 1)<\/p>\n\n\n\n<p>2. Right to inspect and copy any of the accounts of the firm (sub-sec 2)<\/p>\n\n\n\n<p>3. On severance (separation) he may sue for accounts (sub-sec 4)<\/p>\n\n\n\n<p>4. On attaining majority may elect to become partner, and he will be entitled to the share to which he was entitled as a minor. (sub-sec 5).<\/p>\n\n\n\n<p>5. On attaining majority may elect not to become partner, in which case his share is not liable for any acts of the firm done after the date of the public notice that he was elected not to become a partner.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Disabilities_of_a_minor\"><\/span>Disabilities of a minor :<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>1. May not be a partner. (sub-sec 1)<\/p>\n\n\n\n<p>2. May not sue for accounts unless he severs his connection (sub-sec 4)<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Liabilities_of_a_minor\"><\/span>Liabilities of a minor :<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>1. May have his share in the firm attached for the acts of the firm. (ss 3)<\/p>\n\n\n\n<p>2. Unless within the period mentioned in sub-section 5, he elects not to become a partner, he will be liable as a partner. (sub-sec 5).<\/p>\n\n\n\n<p>3. Where a minor on attaining majority has elected to become a partner, he becomes personally liable to third parties for all acts of the firm done since he was admitted to the benefits of partnership. (sub-sec 7(a)).<\/p>\n\n\n\n<p>4. After attaining majority, he may be liable for holding himself out as a partner. (sub-section 9).<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Introduction In this post you will learn about provisions of Indian Partnership act with respect to Minors Section 30. Minors<\/p>\n","protected":false},"author":2,"featured_media":1363,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"colormag_page_container_layout":"default_layout","colormag_page_sidebar_layout":"default_layout","footnotes":""},"categories":[45,31],"tags":[],"class_list":["post-1375","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-indian-partnership-act-1932","category-law-notes"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.6 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Minors admitted to the benefits of partnership \u2013 The Indian Partnership Act, 1932 Law Notes \u2013 Law Tribune - Law Tribune<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/lawtribune.in\/?p=1375\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Minors admitted to the benefits of partnership \u2013 The Indian Partnership Act, 1932 Law Notes \u2013 Law Tribune - Law Tribune\" \/>\n<meta property=\"og:description\" content=\"Introduction In this post you will learn about provisions of Indian Partnership act with respect to Minors Section 30. 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