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indian partnership act

Retired

 We all refer to the words "sleeping partner". In which Act does it occur and how it is legally valid. I don't find these words in the Indian Partnership Act. How it has come to be used and accepted? If there is nothing like sleeping partner, how is his liability different from other partners?

 
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Advocate

Section 4 of the Partneship Act, gives the defination of Partnership, but it does not say anything about sleeping partner. But if we look at the elements of partnership we can see that every partner has to contribute something either in shape of property or skill. But this is merely an incident and not an essential of the relationship of partnership. There can be a partner who contributes neither capital, nor skill, nor anything else, yet they can be partner and are referred to as Sleeping partner.

 
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Advocate

Mr Assumi !


You have  correctly explained  the nature of the Partners  - " Sleeping partner "  it is visible in most of the partneerships as you expalied.

 
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Advocate

YOu are right that the term 'sleeping partner' is not defined in the partnership act. But section 5 of the same act says that the relation among the partner arises from the contract.


Further, Section 13 of the same act defines rights and liabilities of the partners but this is subject to the contract between the partners. So the relation and the status of the partner among themselve depends on the partnership deed which is  a valid contract among the partners.


So, the sleeping partner is the partner in the firm as defined in the partner ship deed and his rights and liabilities depends on terms and conditions written in the deed.

 
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Advocate

YOu are right that the term 'sleeping partner' is not defined in the partnership act. But section 5 of the same act says that the relation among the partner arises from the contract.


Further, Section 13 of the same act defines rights and liabilities of the partners but this is subject to the contract between the partners. So the relation and the status of the partner among themselve depends on the partnership deed which is  a valid contract among the partners.


So, the sleeping partner is the partner in the firm as defined in the partner ship deed and his rights and liabilities depends on terms and conditions written in the deed.

 
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Advocate

YOu are right that the term 'sleeping partner' is not defined in the partnership act. But section 5 of the same act says that the relation among the partner arises from the contract.


Further, Section 13 of the same act defines rights and liabilities of the partners but this is subject to the contract between the partners. So the relation and the status of the partner among themselve depends on the partnership deed which is  a valid contract among the partners.


So, the sleeping partner is the partner in the firm as defined in the partner ship deed and his rights and liabilities depends on terms and conditions written in the deed.

 
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Does anyone knows the procedure to register a partnership firm in THANE? Pls let me know the Procedure.

 
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If there are two partners, both partners are from on state of India, and they wish to do business of retail shop in other state of India. then Stamp paper for partnership should be of which state and which is the state for jurisdiction.

 
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Retired

 Where the partnership deed is registered.

 
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Partnership Deed is not prepared. Partners are from Mumbai and they wish to start retail shop at Banglore. so to prepare the partnership deed from where to buy stamp paper i.e. from Mumbai or Banglore and what to call as the partnership is entered into and what is the court will have jurisdiction to be mentioned in partnership deed.

 
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