The Indian Partnership (Maharashtra Amendment) Act 1984 Complete Act - Bare Act

First published, after having received the assent of the President in the "Maharashtra Government Gazette" on the 17th October 1984.

An Act further to amend the Indian Partnership Act, 1932, in its application to the State of Maharashtra

WHEREAS, h is expedient further to amend the Indian Partnership Act, 1932, in its application to the State of Maharashtra, for the purposes hereinafter appearing; It is hereby enacted in the Thirty-fifth Year of the Republic of India as follows

The Indian Partnership Act, 1932 (IX of 1932), which came into force on the 1st October 1932, is now in operation for more than fifty years, but very few legislative changes have been made therein so far, either by Parliament or by the State Legislatures. Due to manifold changes in the socio-economic conditions and the vast extension of business activities in the public and private sector, it is considered that some important amendments are required to be made in the Act urgently, to make it more effective and useful for all concerned.

2. The Registrar of Firms, Bombay, who has a wide experience of working of the Act, in a commercial centre like Greater Bombay, has suggested certain amendments to the Act to achieve the objects in view. The State Government had also made a reference to the Maharashtra State Law Commission. The Law Commission, in its Eleventh Report, has made valuable recommendations for amending the Act. After taking into consideration all these suggestions and recommendations, it is proposed to amend the Act, in its application to the State of Maharashtra.

3. The following notes on clauses are intended to draw attention to important clauses in the Bill and to explain the reasons for making the proposed amendments: -

(1) This Act may be called the Indian Partnership (Maharashtra Amendment) Act, 1984.

(2) It shall come into force on such date as the State Government may, by notification in the Official Gazette, appoint.

In section 2 of the Indian Partnership Act, 1932, in its application to the State of Maharashtra (hereinafter referred to as "the principal Act"), after clause (c), the following clause shall be inserted, namely

"(c-i) "Registrar" means the Registrar of Firms appointed under sub-section (i) of section 57 and includes the Deputy Registrar of Firms and Assistant Registrar of Firms appointed under sub-section (2) of that section

In section 9 of the principal Act, for the words "or his legal representative" the words, "his heir or legal representative" shall be substituted.

In section 12 of the principal Act, "

(a) in clause (c), the word "and" appearing at the end shall be deleted

(b) in clause (d), for the words "books of the firm" the words "books of the firm; and" shall be substituted

(c) after clause (d), the following clause shall be added, namely

"(e) in the event of the death of a partner, his heirs or legal representatives or their duly authorised agents shall have a right of access to and to inspect and copy any of the books of the firm."

For section 57 of the principal Act, the following section shall be substituted, namely:

"57. Appointment or Registrar of Firms and Deputy and Assistant Registrars of Firms :"(1) The State Government may, by notification in the Official Gazette, appoint a Registrar of Firms who shall exercise, perform and discharge the powers, functions and duties of the Registrar under this Act throughout the State of Maharashtra.

(2) The State Government may likewise appoint one or more Deputy Registrars of Firms and Assistant Registrars of Firms who shall exercise, perform and discharge all or such of the powers, functions and duties of the Registrar and in such areas as the State Government may, by notification in the Official Gazette, specify.

(3) The officers appointed under sub-section (1) and sub-section (2) shall be deemed to be public servants within the meaning of section 21 of the Indian Penal Code".

In section 58 of the principal Act,

(a) in subsection (1),

(i) for the words "The registration of a firm" the words, brackets, figure and letter "Subject to the provisions of sub-section (1A), the registration of a firm" shall be substituted;

(ii) the words "at any time" shall be deleted ;

(iii) after the words "prescribed fee" the words "and a true copy of the deed of partnership" shall be inserted;

(iv) after clause (a), the following clause shall be inserted, namely

"(aa) the nature of business of the firm

(b) after sub-section (1), the following sub-section shall be inserted, namely :

"(IA) The statement under sub-section (1) shall be sent or delivered to the Registrar within a period of one year from the date of constitution of the firm :

Provided that in the case of any firm carrying on business on or before the date of commencement of the Indian Partnership (Maharashtra Amendment) Act, 1984, such statement shall be sent or delivered to the Registrar within a period of one year from such date";

(c) for sub-section (3), the following sub-sections shall be substituted, namely :

"(3) A firm shall not have any of the names or emblems specified in the Schedule to the Emblems and Names (Prevention of Improper Use) Act, 1950, or any colourable imitation thereof, unless permitted so to do under that Act, or any name which is likely to be associated by the public with the name of any other firm on account of similarity, or any name which, in the opinion of the Registrar, for reasons to be recorded in writing, is undesirable:

Provided that nothing in this sub-section shall apply to any firm registered under any such name before the date of the commencement of the Indian Partnership (Maharashtra Amendment) Act, 1984.

(4) Any person aggrieved by an order of the Registrar under sub-section (3) may, within 30 days from the date of communication of such order, appeal to the officer not below the rank of Deputy Secretary to Government authorised by the State Government in this behalf, in such manner, and on payment of such fee, as may be prescribed. On receipt of any such appeal, the authorised officer shall, after giving an opportunity of being heard to be appellant, decide the appeal, and his decision shall be final".

Section 59 of the principal Act shall be renumbered as sub-section (1) of that section, and,

(a) in Subsection (1) as to renumbered, after the words "file the statement." the, words " On the date such entry is recorded and such statement is filed, the firm shall be deemed to be registered." shall be added ;

(b) 'after sub-section (1) as so renumbered, the following so b-section shall he added, namely:

"(2) The firm, which is registered, shall use the brackets and word "(Registered)" immediately after its name."

After section 59 of the principal Act, the following section shall be inserted, namely

"59A-1. Late registration on payment of penalty : If the statement in respect of any firm is not sent or delivered to the Registrar within the time specified in sub-section (IA) of section 58, then the firm may be registered on payment, to the Registrar, of a penalty of one hundred rupees per year of delay or a part thereof''

In Section 60 of the principal Act,

(a) for sub-section (1), the following sub-section shall be substituted, namely:

"(1) When an alteration is made in the firm name or in the nature of business of a firm or in the location of the principal place of business of a registered firm, a statement shall be sent to the Registrar, within a period of 90 days from the date of making such alteration, accompanied by the prescribed fee, specifying the alteration and signed and varified in the manner required under section 58" ;

(b) in the marginal note, for the words "firm name" and the words "firm name, nature of business and" shall be substituted.

In section 61 of the principal Act, for the words "may send intimation thereof to the Registrar, who shall" the following shall be substituted, namely:

"shall send intimation thereof to the Registrar, within a period of 90 days from the date of such discontinuance or, as the case may be, from the date on which the firm begins to carry on business at such place. The Registrar shall then".

In section 62 of the principal Act, for the words "may be sent" the words "shall be sent, within a period of 90 days from the date of making such alteration," shall be substituted.

In section 63 of the principal Act,

(a) in sub-section (I),

(i) for the word "any", wherever it occurs, the word "every" shall be substituted ;

(H) for the words "may give notice to the Registrar of such change or dissolution, specifying the date thereof-," the following shall be substituted, namely :

"shall, within a period of 90 days from the date of such change or dissolution, give notice to the Registrar of such change or dissolution, specifying the date thereof";

(b) after sub-section (1), the following sub-section shall be added, namely :

"(1A) Where a change occurs in the constitution of a registered firm, all persons, who after such change are partners of the firm, shall jointly send an intimation of such change duly signed by them, to the Registrar, within a period of 90 days from the date of occurrence of such change had the Registrar shall deal with it in the manner provided by section 6 1. ";

(c) in sub-section (2), for the words "may give notice to the Registrar" the words 'shall, within a period of 90 days from the date of his election, give notice to the Registrar shall be substituted.

(a) to sub-section (1), the following proviso shall be added, namely :

"Provided that the requirement of registration of firm under this sub-section shall not apply to the suits or proceedings 'Instituted by the heirs or legal representatives of the deceased partner of a firm for accounts of the firm or to realise the property of the firm.";

(b) after sub-section (2), the following sub-section shall be inserted, namely :

"(2A) No suit to enforce any right for the dissolution of a firm or for accounts of a dissolved firm or any right or power to realise the property of a dissolved firm shall be instituted in. any Court by or on behalf of any person suing as a partner in a firm against the firm or any person alleged to be or to have been a partner in the firm unless the firm is registered and the person suing is or has been shown in the Register of Firms as a partner in the firm :

Provided that the requirement of registration of firm under this sub-section shall not apply to the suits or proceedings instituted by the heirs of legal representatives of the deceased partner of a firm for accounts of a dissolved firm or to realise the property of a dissolved firm

(c) in sub-section (3),

(i) for the words, brackets and figures "subsections (1) and (2)" the words, brackets, figures and letter "sub-section (1), (2) and (2A)" shall he substituted ;

(ii) for clause (a) the following clause shall be substituted namely :

"(a) the firms constituted for a duration upto six months or with a capital upto two thousand rupees ; or"

After section 69 of the principal Act, the following sect-ion shall be inserted, namely:

" 69A Penalty for contravention of sections 60, 61, 62 or 63 , -If any statement, intimation or notice under sections 60, 61, 62 or 63 in respect of any registered firm is not sent or given to the Registrar, within the period specified in that section, the Registrar may, after giving notice to the partners of the firm and after giving

In section 70 of the principal Act, for the words "shall be punishable with imprisonment which may extend to three months, or with fine, or with both." the following shall be substituted, namely:

99 shall, on conviction, be punished with imprisonment for a term which may extend to one year, or with fine, or with both:

Provided that in the absence of special and adequate, reasons to the contrary to be mentioned in the judgment of the Court, the fine shall not be less than one, thousand rupees."

After section 70 of the principal Act, the following section shall be inserted namely

"70A. Maximum fees and power to amend Schedule I - (1) The fees payable under this Act and the rules made thereunder shall not exceed the maximum fees as specified in Schedule 1.

(2) Subject to the provisions of this section, the ,)rate Government may, having regard to the expenditure incurred or to he incurred for carrying out the purposes of this Act, from time to time, by notification in the Official Gazette, vary any of the amounts of maximum fees and other particulars specified in Schedule 1, and, thereupon, the said Schedule shall be deemed to be amended accordingly.

(3) Every notification issued under sub-section (2) shall take effect from the date of its publication in the Official Gazette, unless some other date is specified therein for this purpose.

(4) Every notification issued by the State Government under subsection (2) shall be laid, as soon as may be after it is issued, before each House of the State Legislature, while it is in session, for a total period of thirty days, which may be comprised in one session or in to successive sessions, and if, before the expiry of the session in which it is so laid or the session immediately following, both Houses agree in making any modification in the notification or both Houses agree that the notification should not be issued, and notify such decision in the Official Gazette, the notification shall, from the date of publication of such decision, have effect only in such modified form or be of no effect, as the case may be; so, however, that any such modification or annulment shall be without prejudice to the validity of anything previously done or omitted to be done in pursuance of that notification."

In section 71 of the principal Act,

(a) for sub-section (1) the following sub-section shall be substituted, namely:

"(1) Subject to the provisions of section 70A the State Government may, by notification in the Official Gazette, make rules prescribing the fees which shall accompany documents sent to the Registrar or which shall be paid in respect of any intimation, notice or application given to the Registrar or which shall be payable for the inspection of documents in the custody of the Registrar or for copies from the Register of Firms or which shall be paid for supply of any prescribed to

(b) in subsection (2),-

(i) in clause (a), for the words and figures "under section 58" the words, brackets and figures "under sub-section (1) of section 58" shall be substituted :

(ii) after clause (a), the following clause shall be inserted, namely :

"(aa) prescribing the manner of filing an appeal under subsection (4) of section 58;" :

(c) for .Subsection (4), the following subsection shall be substituted namely-

"(4) Every rule make under this section shall be laid, as soon as may be after it is made, before each House of the State Legislature, while it is in session, for a total period of thirty days, which may be comprised in one session or in two successive sessions, and if, before the expiry of the session in which it is so laid or the session immediately following, both Houses agree in making any modification in the rule or both Houses agree that !he rule should not be made, and notify 'Official Gazette, the role shall from the such decision in the date of publication of such decision, have effect only in such modified form or be of no effect, as the case may be; so, however, that my such modification or annulment shall be without prejudice to the validity of anything previously done or omitted to be done in pursuance or that rule."