S10
Apportionment of premium where partnership dissolved.
Rights where partnership dissolved for fraud or misrepresentation.
Right of outgoing partner in certain cases.
No. 1 of 1897.
PARTNERSHIP.
have the surplus assets after such 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; 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 Where a partnership contract is rescinded on the ground of the fraud or misrepresentation of one of the parties thereto, the party entitled to rescind is, without prejudice to any other right,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 is
(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 dissolution,
to share profits made after dissolution.
S10
Apportion-
ment of pre partnership prematurely
mium where
dissolved.
Rights where partnership
dissolved for
fraud or misrepresen- tation.
Right of outgoing partner in
No. 1 of 1897.
PARTNERSHIP.
have the surplus assets after such payment applied in pay- ment 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 partner- ship 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 partner- ship 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
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 is
(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 other- wise ceased to be a partner, and the surviving or continuing partners carry on the business of the firm with its capital or profits made assets without any final settlement of accounts as between after dissoluf the firm and the outgoing partner or his estate, then, in the
certain cases
to share
tion.
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