Skip to content

CS Professional · Insolvency and Bankruptcy - Law and Practice · Bankruptcy Order for Individuals and Partnership Firms

Anil's Part III matter involves a firm, Sharma & Sons, which has several partners and carries on business in partnership but was never registered under the Indian Partnership Act, 1932. Under the Part III definitions, is it a 'firm'?

Yes. Part III defines a firm as a body of individuals carrying on business in partnership, whether or not registered under the Indian Partnership Act, 1932. Registration is not required, so the unregistered Sharma & Sons is a firm.

  1. ANo, only registered partnerships qualify as a firm
  2. BYes, a firm means a body of individuals carrying on business in partnership whether or not registeredCorrect
  3. CNo, a firm must have at least ten partners
  4. DYes, but only if it is also a company

Explanation

Section 79(16) defines firm as a body of individuals carrying on business in partnership whether or not registered under section 59 of the Indian Partnership Act, 1932. Registration is therefore not a condition. The distractor demanding registration adds a requirement the text does not contain.

Did you get it right without looking?

One question tells you little. A timed set on Bankruptcy Order for Individuals and Partnership Firms shows your real accuracy, how long you take and where you lose marks.

Practise Bankruptcy Order for Individuals and Partnership FirmsFree diagnostic mock

More Bankruptcy Order for Individuals and Partnership Firms questions