Jammu and Kashmir State Partnership Act, 1996 (1939 A.D.)
No: 5 Dated: Jul, 26 1996
THE JAMMU AND KASHMIR STATE PARTNERSHIP ACT, 1996 (1939 A.D.)
(Act No. V of Samvat 1996)
An Act to define the law relating to partnership.
Whereas it is expedient to define the law relating to partnership:
It is hereby enacted as follows
CHAPTER-I
Preliminary
1. Short title, extent and commencement. - (1) This Act may be called the Jammu and Kashmir State Partnership Act. 1996.
(2) It extends to the whole of Jammu and Kashmir State.
(3) It shall come into force on and from such date as the Government, by notification in the Government Gazette, prescribe in this behalf, except section 69 which shall come into force two years after such date.
2. Definitions. - In this Act, unless there is any thing 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 of the firm which gives rise to a right enforceable by or against the firm;
(b) "business" includes" every trade, occupation and profession;
(c) "prescribed" means prescribe if 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 a partner in the firm; and
(e) expression used but not defined in this Act and defined in the Contract Act 1977, shall have the meaning assigned to them in that Act.
3. Application of provisions of Act IX of 1977. - The unrepealed provisions of the Contract Act, 1977, save in so far as they are inconsistent with the express provisions of this Act, shall continue to apply to firms.
CHAPTER-II
The Nature of Partnership
4. Definition of "partnership", "firm" and "firm name". - "Partnership" is the relationship between persons who have agreed to share the profits of a business carried on In all or any of them acting for all.
Persons who have entered into partnership with one another are called individually "partners" and collectively "a firm", and the name under which their business is carried on is called the "firm name".
5. Partnership not created by status. - The relation of partnership arises from contract and not front status:
and, in particular, the members of Hindu undivided family carrying on a family business as such, or a Buddhist husband and wife carrying on business as such are not partners in such business.
6. Mode of determining existence of partnership. - In determining whether a group of persons is or is not a firm, or whether a person is or is not a partner in a firm, regard shall be had to the real relation between the parties, as shown by all relevant facts taken together.
Explanation 1. - The sharing of profits or of gross returns arising from properly by persons holding a joint or common interest in that property does not of itself make such persons partners.
Explanation 2. - The receipt by a person of a share of the profits of a business, or of payment contingent upon the earning of profits or varying with the profits earned by a business, does not of itself make him a partner with the persons carrying on the business:
and, in particular, the receipt of such share or payment-
(a) by a lender of money to person engaged or about to engage in any business.
(b) by a servant or agent as remuneration.
(c) by the widow or child of a deceased partner as annuity, or
(d) by a previous owner or part owner of the business, as consideration for the sale of the goodwill or share thereof.
does not of itself make the receiver a partner with the persons carrying on the business.
7. Partnership at will. - Where no provision is made by contract between the partners for the duration of their partnership, or for the determination of their partnership, the partnership is "partnership at will".
8. Particular Partnership. - A person may become a partner with another person in particular adventures or undertakings.