INCOMING AND OUTGOING PARTNERSCentral

Section 31 of The Indian Partnership Act, 1932 in hindi

(1)Subject to contract between the partners and to the provisions of section 30, no person shall be introduced as a partner into a firm without the consent of all the existing partners.
(2)Subject to the provisions of section 30, a person who is introduced as a partner into a firm does not thereby become liable for any act of the firm done before he became a partner.

Summary

A new partner can only be introduced into a firm with the consent of all existing partners.
This requirement for total consent can be overridden if the partners have a different agreement in their contract.
Generally, a new partner is not responsible for any acts the firm did before they joined.
The rules for introducing a partner are subject to the specific rules about minors found in Section 30.

Practical examples

1Vikram and Simran run a coffee shop. Vikram wants to bring his friend Kabir in as a third partner. Even though Vikram owns sixty per cent of the business, he cannot make Kabir a partner unless Simran also agrees to it.

2Sneha joins an existing architecture firm on July 1st. On July 15th, a client sues the firm for a mistake made in a building design from two years ago. Under the law, Sneha is not personally liable for that old mistake because she was not a partner when it happened.

FAQ

1. Does a new partner need everyone's permission to join under the Indian Partnership Act, 1932, Section 31?

Yes, under Section 31 of the Indian Partnership Act, 1932, no person can be introduced as a partner without the consent of all existing partners, unless the partnership contract says otherwise.

2. Is a new partner liable for old debts under the Indian Partnership Act, 1932, Section 31?

No, under Section 31 of the Indian Partnership Act, 1932, a person who joins a firm does not become liable for any act of the firm done before they became a partner.

3. Can the partners agree to a majority vote for new members under the Indian Partnership Act, 1932, Section 31?

Yes, Section 31 of the Indian Partnership Act, 1932, allows the rule of total consent to be changed by a contract between the partners.

Test yourself

Q1.Under Section 31 of the Indian Partnership Act, 1932, what is the default requirement for adding a new partner?

Q2.Under Section 31 of the Indian Partnership Act, 1932, when does a person become liable for the firm's acts?

Q3.How does Section 31 of the Indian Partnership Act, 1932, relate to Section 30 regarding a minor's liability?

Q4.Under Section 31 of the Indian Partnership Act, 1932, what can change the requirement for all partners to consent to a new member?

30PreviousSection 30 Minors admitted to the benefits of partnership.32NextSection 32 Retirement of a partner.

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