"If a partner is otherwise expelled; the expulsion is null and void." Discuss.

CA Foundation · Business Laws · PYQS · September 2024
"If a partner is otherwise expelled; the expulsion is null and void." Discuss.

Suggested Answer and Working Notes:

If a partner is otherwise expelled, the expulsion is null and void. According to Section 33 of the Indian Partnership Act,1932 (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 bona fide interest of the business of the firm. 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. Hence, it is correct to say that, if a partner is otherwise expelled, the expulsion is null and void.

Topics: The Indian Partnership Act, 1932

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