Whether a minor may be admitted in the business of partnership firm under the Indian Partnership Act, 1932? Whether the minor will have any right in parnership firm ? Explain.

CS Executive · Economic, Business and Commercial Laws · PYQS · June 2019
Whether a minor may be admitted in the business of partnership firm under the Indian Partnership Act, 1932? Whether the minor will have any right in parnership firm ? Explain.

Answer & Explanation:

Drawing a joint inference from reading of Section 11 of the Indian Contract Act, 1872, the decision of the Privy Council in Mohori Bibi v. Dharmo Das Ghose and Section 5 of the Indian Partnership Act, 1932, a minor being incompetent to contract cannot enter into agreement of partnership. The only provision that Section 30 of the Indian Partnership Act, 1932 makes is that with the "consent of all the partners for the time being, a minor can be admitted into the benefits of partnership to which a minor is going to be admitted". A partnership firm cannot be formed with only minors as partners. There must be at least two major partners before a minor is admitted into the benefits of partnership. Rights of Minor as a partner: He is entitled to his agreed share and can inspect books of account of the firm [Section 30(2)]. He can bring a suit for account and his share when he intends to sever his connections with the firm, but not otherwise. [Section 30(4)]

Topics: Indian Partnership Act, 1932 / Indian Contract Act, 1872

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