The Indian Partnership Act, 1932

(1) This Act may be called the Indian Partnership Act,1932. 1[(2) It extends to the whole of India 2[3***].] (3) It shall come into force on the 1st day of October, 1932, except section 69, which shall come intoforce on the 1st day of October, 1933.

In this Act, unless there is anything repugnant in the subject or context,-- (a) an "act of a firm" means any act or omission by all the partners, or by any partner or agent ofthe firm which gives rise to a right enforceable by or against the firm; (b) "business" includes every trade, occupation and profession; (c) "prescribed" means prescribed by rules made under this Act; (d) "third party", used in relation to a firm or to a partner therein, means any person who is not apartner in the firm; and (e) expressions used but not defined in this Act and defined in the Indian Contract Act, 1872 (9 of1872), shall have the meanings assigned to them in that Act.

The unrepealed provisions of the Indian ContractAct, 1872 (9 of 1872), save in so far as they are inconsistent with the express provisions of this Act, shallcontinue to apply to firms.

"Partnership" is the relationbetween persons who have agreed to share the profits of a business carried on by all or any of them actingfor all. Persons who have entered into partnership with one another are called individually "partners" andcollectively "a firm", and the name under which their business is carried on is called the "firm name".

The relation of partnership arises from contract and not fromstatus; and, in particular, the members of a Hindu undivided family carrying on a family business as such, ora Burmese Buddhist husband and wife carrying on business as such are not partners in such business.