Rights of the Partner

1. Right to take part in the Conduct of the Firm’s Business: Section 12(a) of the Indian Partnership Act, 1932 provides that every partner in a firm has the right to be involved in the conduct of the business of the firm. All partners have the right to manage the business of the firm.

2. Right to Express Opinion: Section 12(c) of the Indian Partnership Act, 1932 provides that all partners can express their opinions freely in matters that are concerned with the firm’s business. However, before any decision is made based on the opinion of a partner, the consent of all other partners must be obtained.

3. Right to have Access to Books of the Firm: Section 12(d) of the Indian Partnership Act, 1932 provides that every partner has the right to look into the books of the firm. It is to be noted that it doesn’t matter whether the books concern the accounts of the firm or not.

4. Right to Profit: As per Section 13(b) of the Indian Partnership Act 1932, all partners must equally share profits earned through the business unless the profit-sharing ratio is expressly stated in the partnership deed.

5. Right to Interest on Capital: Section 13(c) of the Indian Partnership Act, 1932 provides that in an agreement, partners have the right to claim interest on the capital out of the profits of the firm.

6. Right to Interest on Advances made by the Partner: In some cases, the firm may require extra monetary resources apart from the capital. In such cases, a partner may advance the amount to the firm and he may also claim interest on such advances made by him.

7. Right to Indemnity: Section 13(e) of the Indian Partnership Act, 1932 provides that a partner is allowed to make payments and incur liabilities on behalf of the firm. The firm is required to indemnify a partner in respect of any payments or liabilities, whether it was made in the ordinary course of business or an emergency.

8. Right to Dissolve the Partnership: Section 44 of the Indian Partnership Act, 1932 provides that a partner has the right to file a suit to express his intention to dissolve the partnership. The court may dissolve the firm on the following grounds:

• Unsound mind of a partner.
• Permanent incapability of any partner to perform his duties.
• Another partner is guilty of misconduct.
• Committing a breach of agreement by another partner either willfully or persistently.
• Transfer of interest in the firm by another partner to any third person.
• Business or firm cannot be carried forward due to losses.
• Any other ground.

9. Right to not get Expelled: Section 33 of the Indian Partnership Act, 1932 provides that all partners will have the right not to get expelled by the majority partners except on certain grounds for which reasonable warning must be given to them. Also, an opportunity for an explanation must be given before making the expulsion of a partner.

10. Right to prevent Introduction of New Person: Section 31 of the Indian Partnership Act, 1932 provides that every partner has the right to prevent the introduction of any new partner without taking his consent unless the partnership agreement has expressly provided that such introduction is permitted.

11. Right to Retire: Section 32 of the Indian Partnership Act, 1932 has provided that a person has the right to retire with the consent of all other partners; however, no consent is required when the requirement of consent is waived by the agreement. The partners can retire by simply providing a notice to all other partners in partnership constituted at will.