Can a partner be expelled? If so, how? Which factors should be kept in mind prior to expelling a partner from the firm by the other partners…
CA Foundation · Business Laws · RTP · September 2025
Can a partner be expelled? If so, how? Which factors should be kept in mind prior to expelling a partner from the firm by the other partners according to the provision of the Indian Partnership Act, 1932?
Suggested Answer and Working Notes:
As per Section 33 of the Indian Partnership Act,1932, a partner may not be expelled from a firm except (i) the power of expulsion must have existed in a contract between the partners; (ii) the power has been exercised by a majority of the partners; and (iii) it has been exercised in good faith. If all these conditions are not present, the expulsion is not deemed to be in bonafide interest of the business of the firm and shall be null and void. The test of good faith as required under Section 33 (1) includes three things: (i) The expulsion must be in the interest of the partnership (ii) The partner to be expelled is served with a notice (iii) He is given an opportunity of being heard. Yes, a partner may be expelled by other partners strictly in compliance with the provisions of section 33.
Topics: The Indian Partnership Act, 1932
Related Questions in this Topic
- A, B and C are partners in an unregistered partnership firm named M/s ABC & Associates. Is the suit maintainable in the ...
- Mr. Ram and Mr. Rakesh are working as teachers in Ishwarchand Vidhyasagar Higher Secondary School and also are very good...
- Ram and Sarthak are partners in a partnership firm styled as RS & Co. (the firm). Gopal, a renowned businessman, is thei...
- With reference to the provisions of Indian Partnership Act, 1932 explain the various effects of insolvency of a partner.
- "Partner indeed virtually embraces the character of both a principal and an agent". Describe the said statement keeping ...