No. 1 of 1897.
841
payment applied in payment of what may be due to the partners respectively, after deducting what may be due from them as partners to the firm; and for that purpose any partner or his representatives may, on the termination of the partnership, apply to the Court to wind up the business and affairs of the firm.
40. Where one partner has paid a premium to another on entering into a partnership for a fixed term, and the partnership is dissolved before the expiration of that term otherwise than by the death of a partner, the Court may order the repayment of the premium, or of such part thereof as it thinks just, having regard to the terms of the partnership contract and to the length of time during which the partnership has continued; unless---
(1) the dissolution is, in the judgment of the Court, wholly or chiefly due to the misconduct of the partner who paid the premium;
(2) the partnership has been dissolved by an agreement containing no provision for a return of any part of the premium.
41. Where a partnership contract is rescinded on the ground of the fraud or misrepresentation of one of the parties thereto, the party entitled to rescind is, without prejudice to any other right, entitled---
(1) to a lien on, or right of retention of, the surplus of the partnership assets, after satisfying the partnership liabilities, for any sum of money paid by him for the purchase of a share in the partnership and for any capital contributed by him; and
(2) to stand in the place of the creditors of the firm for any payments made by him in respect of the partnership liabilities; and
(3) to be indemnified by the person guilty of the fraud or making the representation against all the debts and liabilities of the firm.
42.-(1) Where any member of a firm has died or otherwise ceased to be a partner, and the surviving or continuing partners carry on the business of the firm with its capital or assets without any final settlement of accounts as between the firm and the outgoing partner or his estate, then, in the absence of any agreement to the contrary, the outgoing partner or his estate is entitled, at the option of himself or his representatives, to such share of the profits made after dissolution.
* As amended by No. 8 of 1912.
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PARTNERSHIP.
No. 1 of 1897.
841
payment applied in payment of what may be due to the partners respectively, after deducting what may be due from them as partners to the firm; and for that purpose any partner or his representatives may, on the termination of the partnership, apply to the Court to wind up the business and affairs of the firm.
mium where
40. Where one partner has paid a premium to another on Apportion- entering into a partnership for a fixed term, and the partnership is ment of pre- dissolved before the expiration of that term otherwise than by the partnership death of a partner, the Court may order the repayment of the pre- dissolved.
prematurely mium, or of such part thereof as it thinks just, having regard to the terms of the partnership contract and to the length of time. during which the partnership has continued; unless---
(1) the dissolution is, in the judgment of the Court, wholly or chiefly due to the misconduct of the partner who paid the premium ;
or
(2) the partnership has been dissolved by an agreement containing no provision for a return of any part of the premium.
*
41. Where a partnership contract is rescinded on the ground of Rights where the fraud or misrepresentation of one of the parties thereto, the dissolved for partnership party entitled to rescind is, without prejudice to any other right, fraud or entitled-
(1) to a lien on, or right of retention of, the surplus of the part- nership assets, after satisfying the partnership liabilities, for any sum of money paid by him for the purchase of a share in the partnership and for any capital contributed by him and is
:
(2) to stand in the place of the creditors of the firm for any pay- ments made by him in respect of the partnership liabilities; and
(3) to be indemnified by the person guilty of the fraud or making the representation against all the debts and liabilities of the firm.
misrepresen- tation.
*
to share
42.-(1) Where any member of a firm has died or otherwise Right of ceased to be a partner, and the surviving or continuing part- partner in
outgoing ners carry on the business of the firm with its capital or assets cortain cases without any final settlement of accounts as between the firm and profits made the outgoing partner or his estate, then, in the absence of any agreement to the contrary, the outgoing partner or his estate is entitled, at the option of himself or his representatives, to such
* As amended by No. 8 of 1912.
after dissolu-
*
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