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Gopal rescinds his partnership in a firm for the fraud of partner Hemant. He paid Rs 2,00,000 for a share, contributed Rs 1,00,000 capital and paid Rs 50,000 towards firm debts. After the debts are paid, surplus assets are Rs 2,50,000. Which statement is correct?

Gopal has a lien on the surplus for the Rs 2,00,000 share price and Rs 1,00,000 capital, ranks as a creditor for the Rs 50,000 paid towards debts, and can also be indemnified by Hemant against the firm's debts, as Section 52 provides.

  1. AHis lien on the surplus covers the Rs 2,00,000 and Rs 1,00,000, and the Rs 50,000 is a creditor claim, all without prejudice to indemnity from HemantCorrect
  2. BHis lien covers all Rs 3,50,000 including the Rs 50,000 debt payment, and he has no creditor rights
  3. CHis rights are limited to the surplus of Rs 2,50,000 and he cannot claim indemnity from Hemant
  4. DHe may claim only the Rs 50,000 as creditor because the share price and capital are forfeited on rescission

Explanation

Section 52(a) gives a lien for the sum paid for the share and capital contributed (Rs 3,00,000). Section 52(b) lets him rank as creditor for the Rs 50,000 paid towards debts. Section 52(c) indemnity from the guilty partner remains available, and all rights are without prejudice to any other right.

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