The mutual relations between the
partners of a firm comes into existence through an agreement between the said
partners. This gives rise to mutual right and duties to every partner involved
in the firm’s business. Section 9 to 17 of the Partnership Act of 1932 lays
down the provisions governing the mutual relations of all the partners. These
relations are governed by an existing contract among them which may be implied
or expressed by the course of dealing. The agreement may vary depending on the
consent of all the partners. In this article, we look at the various rights and
duties fo partners in a partnership firm in detail.
Rights of a partner
The following are the rights of a
partner in a partnership firm.
Section 12(a): Right to take part in the conduct of the business
All the partners of a partnership firm
have the right to take part in the business conducted by the firm as a
partnership business is a business of the partners, and their management powers
are generally coextensive. If the management power of a particular partner is
interfered with and the individual has been wrongfully precluded from
participating, the Court of Law can intervene under such circumstances. The
Court can, and will, restrain the other partner from doing so by injunction.
Other remedies are a suit for dissolution, a suit for accounts without seeking
dissolution and so on for a partner who has been wrongfully deprived of the
right to participate in the management.
The previously mentioned provisions of
the law will be applicable unless there is no existing contract to the contrary
among the partners. It is common to find a term in partnership agreements that
gives only a limited power of management to a specific partner or a term that
the control of the partnership will remain vested with one or more partners to
the exclusion of others. In such a case, the Court of Law would generally be
unwilling to interpose with the management with such partner (s), unless it is proven
that something was done illegally or in the breach of trust among the partners.