Mr. Ram and Mr. Raheem are working as teachers in Ishwarchand Vidhyasagar Higher Secondary School and also are very good friends. They jointly…

CA Foundation · Business Laws · MTP · June 2024
Mr. Ram and Mr. Raheem are working as teachers in Ishwarchand Vidhyasagar Higher Secondary School and also are very good friends. They jointly purchased a flat which was given on rent to Mr. John. It was decided between landlords and tenant that the rent would be - 10,000 per month inclusive of electricity bill. It means electricity bill will be paid by landlords. The landlords, by mistake, did not pay the electricity bill for the month of March 2023. Due to this, the electricity department cut the connection. Mr. John has to pay the electricity bill of 2800and 200as penalty to resume the electricity connection. Mr. John claimed 3000from Mr. Ram but Mr. Ram replied that he is liable only for 1500. Mr. John said that Mr. Ram and Mr. Raheem are partners therefore he can claim the full amount from any of the partners . Explain, whether under the provision of Indian Partnership Act, 1932, Mr. Ram is liable to pay whole amount of 3000to Mr. John?

Suggested Answer and Working Notes:

(i) According to Section 4 of the Indian Partnership Act, 1932, "Partnership" is the relation between persons who have agreed to share the profits of a business carried on by all or any of them acting for all. Therefore, for determining the existence of partnership, it must be proved that:

Topics: The Indian Partnership Act, 1932, The Indian Partnership Act, 1932, The Indian Partnership Act, 1932

Open in Interactive Practice Hub · Full Practice Hub · Chapter Weightage · More in this subject

Related Questions in this Topic