can one/more partner/s remove another?
Manish Singh (Advocate) 12 August 2008
one single partner can not remove another if there are only two or more partners.
removal depends upon the partnership deed.
But a partner can leave the firm at any point of time and afterwards the firms's future depends upon the nature of partnership.
Priya Ranjan (Sr. Ex.Legal) 12 August 2008
Sec 33 of Indian Partnership act says that : a partner cannot be expelled from thr partnership by any majority of partners ,save in the exercise of good faith or power conferred by the contracts between them.
D.V.RamaKrishna (Advocate) 12 August 2008
Any question of taking in or retirement or removal of a partner would be within the purview of the partnership deed entered into between the partners. If there is no partnership deed then provisions of the Indian Partnership Act would govern w.r.t. the removal/dissolution/retirement of a partner.
ca.bhupendrashah (FCADISA) 12 August 2008
does itmean that expulsion a unwanted partner is not possible?
Manish Singh (Advocate) 13 August 2008
no, if there is any misconduct ie fraud etc done by any partner, majority of partners can remove that partner but again this all depends upon the nature of the partnership deed.
if the partnership is at will, the partnership will be dissolved in the said case.
Aastha (Student) 03 August 2013
I am facing a problem which deals with Indian Partnership Act. I am hoping if you could help me finding a solution. It goes like this:
If there are two partners in a firm where the partnership is at will and one of those partners *suggested* the other partner to induct his wife in his place. And then due to change in management, business suffered huge losses. And then the bank in which the partners had opened a joint account in the name of their firm filed a case against their firm for interest dues.
What is your say about the existence of firm? I am not clear as to whether the other partner gave consent for the replacement or not. I have read that partner can be replaced only with the consent of other partners. Now if such a replacement is done without consent, would that make it unlawful to carry on the business according to section 41(b) and thus leading to compulsory dissolution or would it make the action invalid and partnership will continue? On the other hand and more importantly, What would be the status of the partenrship and the existence of the firm if the replacement was done with the consent of the other partner?
Please help, it's a part of a class assignment i got assigned yesterday and submission is on coming monday.
MANISH (PRACTICE) 23 September 2013