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CA Foundation · Business Laws · The Indian Partnership Act, 1932

Hari, Imran and Jaya are partners in a firm. Hari wants to introduce his friend Kiran as a new partner in the firm. Imran agrees, but Jaya objects. Unless a contract provides otherwise, what is the legal position?

Kiran cannot be introduced. Unless the partners' contract says otherwise, a new partner can be admitted only with the consent of all existing partners, and Jaya's objection defeats the proposal despite Imran's agreement or any capital Hari offers.

  1. AKiran becomes a partner as a majority consents
  2. BKiran becomes a partner if Hari brings capital
  3. CKiran cannot be introduced without the consent of all existing partnersCorrect
  4. DKiran becomes a partner after the firm is registered

Explanation

Subject to a contract between the partners, no person can be introduced as a partner without the consent of all existing partners. Since Jaya objects, consent is not unanimous. Capital contribution or majority support cannot override this rule.

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