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Asha and Bharat run a small trading firm in Pune. A friend asks which Parliamentary enactment, forming part of India's body of statute law, governs the relationship between such partners. Which of the following correctly describes the Indian Partnership Act, 1932 in terms of its source and making?

The Indian Partnership Act, 1932 is a statute enacted by Parliament, so it is a legislative source of law. It is not an RBI rule, a purely judge-made doctrine or a temporary ordinance, because it was passed through the full legislative process.

  1. AIt is a statute enacted by the Parliament of India, and so it is a source of law in the form of legislationCorrect
  2. BIt is a set of rules issued by the Reserve Bank of India as a delegated regulator
  3. CIt is a judge-made rule developed only through High Court precedents
  4. DIt is an ordinance promulgated by the President that has to be renewed every year

Explanation

The Indian Partnership Act, 1932 is an Act passed by Parliament, so it is enacted (statute) law. It is not RBI regulation, not purely case law, and not an ordinance. Ordinances are temporary and lapse unless approved by the legislature.

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