Girish Upadhyaya and a Hindu Undivided Family (HUF) entered into partnership agreement. The Karta of the HUF contended that all the members of family become ipso facto partners of the partnership. Discuss the tenability

CS Professional · Drafting, Pleadings and Appearances · PYQS · June 2025
Girish Upadhyaya and a Hindu Undivided Family (HUF) entered into partnership agreement. The Karta of the HUF contended that all the members of family become ipso facto partners of the partnership. Discuss the tenability of the contention.

Answer & Explanation:

Answer 3A(ii) For the admissibility of any contention in the pleading should be in consonance with the law. It means any fact which cannot sustain before law cannot be pleaded likewise any alike contention cannot sustain before the court. The word "person" in Section 4 of the Indian Partnership Act, 1932 contemplated only natural and legal persons. ( Duli Chand v. C.I.T., AIR, 1956 SC 354 ). Partnership relation is one of contractual nature. Therefore, such persons who are competent to contract can enter into partnership. A firm or a Hindu Undivided Family is not a legal person and cannot enter into partnership with any person. When the Karta of a Joint Hindu Family enters into a partnership with strangers the other members of the family do not ipso facto become partners ( Firm Bhagat Ram v. Comm. of Excess Profits Tax, AIR 1956 SC 374 ). Therefore, it may be said that the contention of Karta is not tenable.

Topics: Partnership Law

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