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Sec 56 to 71 Chapter VII (Registration Of Firms) The Indian Partnership Act, 1932

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56. Power to exempt from application of this Chapter.—

The¹ [State Government of any State] may, by notification in the Official Gazette, direct that the provisions of this Chapter shall not apply to^₂ [that State] or to any part thereof specified in the notification.

(1. Subs. by the A.O. 1937, for “G. G. in C.”)

(2. Subs. ibid., for “any province”.)

57. Appointment of Registrars.—

(1) The State Government may appoint Registrars of Firms for the purposes of this Act, and may define the areas within which they shall exercise their powers and perform their duties.

(2) Every Registrar shall be deemed to be a public servant within the meaning of section 21 of the Indian Penal Code (45 of 1860).

STATE AMENDMENT

Goa, Daman and Diu

In exercise of power conferred under sub-section (1) of Section 57 of the Indian Partnership Act, 1932 (IX of 1932) (hereinafter referred to as the Act), the Government of Goa, in supersession of all earlier Notifications which may have been issued in the context and which may render to be contradictory to present Notification hereby appoints the Officers shown in Column No. II of the table below as Registrar of Firms who shall exercise, perform and discharge the powers, functions and duties of the Registrar under the Act within the jurisdiction mentioned in Column No. III of the table below:–

This Notification shall come into force with immediate effect.

(Published in the Official Gazette Series I No. 49(Extraordinary) dated 7-3-2019) (w.e.f. 8/42/2018- LD(Estt)/469 dated 6-03-2019)

58. Application for registration.—

(1) The registration of a firm may be effected at any time by sending by post or delivering to the Registrar of the area in which any place of business of the firm is situated or proposed to be situated, a statement in the prescribed form and accompanied by the prescribed fee, stating—

(a) the firm name,

(b) the place or principal place of business of the firm,

(d) the date when each partner joined the firm,

(e) the names in full and permanent addresses of the partners, and

(f) the duration of the firm.

The statement shall be signed by all the partners, or by their agents specially authorised in thisbehalf.

(2) Each person signing the statement shall also verify it in the manner prescribed.

(3) A firm name shall not contain any of the following words, namely:—

“Crown”, “Emperor”, “Empress”, “Empire”, “Imperial”, “King”, “Queen”, “Royal”, orwords expressing or implying the sanction, approval or patronage of^1*** Government ^2***,except ³ [when the State Government] signifies ⁴ [its] consent to the use of such words as part of the firm name by order in writing ^5***.

Also Check: Partnership Act Free Classes

(1. The words “the Crown or the Central Government or any Provincial” omitted by the A. O. 1950. The words “the CentralGovernment or any Provincial Government or the Crown Representative” were subs. by the A. O. 1937 for “the G. of I. or a L. G.”)

(2. The words “or the Crown Representative” omitted by the A.O. 1948.)

(3. Subs. by the A.O. 1937, for “when the G.G. in C.”.)

(4. Subs.ibid. for “his”)

(5. The words “under the hand of one of the Secretaries to the G. of I.” omitted, ibid.)

STATE AMENDMENT

Goa, Daman and Diu

The Government of Goa is hereby pleased to levy a non-refundable processing fee of Rs. 1,000/- (Rupees one thousand only) for processing the documents for registration of Partnership Firm under the Indian Partnership Act, 1932 (Central Act 9 of 1932).

This Order shall come into force with effect from the 1st day of April, 2017.

(Published in the Official Gazette Series I No. 52 (Extraordinary-2) dated 31-3-2017) (w.e.f. 8-5-2017- LD(Estt.) (C)/407 dated 31-3-2017)

Uttarakhand

Substitution of section 58.—

In the Indian Partnership Act, 1932, (hereinafter referred to as the Principal Act) section 58 shall be substituted as follows, namely:-

58. Application for registration.—

(1) The registration of a firm may be effected at any time by uploading on the website following statement in the prescribed online form and accompanied with prescribed fees to the Registrar of the area in which any place of business of the firm is situated or proposed to be situated, stating.—

(a) the firm name

(b) the place or principal place of business of the firm,

(d) the date when each partner joined the firm,

(e) the names in full and permanent addresses of the partners, and

(f) the duration of the film.

The statement shall be digitally signed by all the partners or by their agents specially authorized in this behalf.

(2) The applicant, signing the statement shall also upload to the website, verifying the statement recorded in the online format mentioned in sub-section (1), verifying it in the affidavit certified by the Notary on the non-judicial stamp paper of Rs. 10/.

(3) The desired enclosed shall also be uploaded on website, by the applicant.

(4) A firm name shall not contain the word Union, State, Land Mortgage, Land development, Cooperative, Gandhi, Reserve Bank or any of the words expressing or implying the sanction, approval or patronage of Government, except when the State Government signifies its consent to the use of such words as part of the firm name by order in writing.

(5) The prescribed fee of registration shall be submitted online after the online approval given by the Registrar.

(6) After submitting the prescribed registration fee the digitally signed registration certificate may be downloaded from the website by the applicant.

[Vide Uttarakhand Act 5 of 2019, s. 2]

Also Check: Partnership Act One Liner Notes

Rajasthan

Amendment of section 58, Central Act IX of 1932.—

For sub-section (3) of section 58 of the Indian Partnership Act, 1932 (Central Act IX of 1932), hereinafter referred to as the principal Act, the following sub-sections shall be substituted, namely :

"(3) No firm shall be registered by a name which, in the opinion of the State Government, is undesirable.

(4) Except with the previous sanction in writing of the State Government, no firm shall be registered by a name which contains any of the following words, namely:-

(a) 'Union', 'State', 'President', 'Republic' or any word expressing or implying the sanction, approval or patronage of the Central or any State Government ; and

(b) 'Municipal', 'Chartered' or any word which suggests or is calculated to suggest connection with any municipality or other local authority:

Provided that nothing in this sub-section shall apply to any firm registered before the date of the commencement of the Indian Partnership (Rajasthan Amendment) Act, 1971."

[Vide Rajasthan Act 10 of 1971, s. 2]

59. Registration.—

Where the Registrar is satisfied that the provisions of section 58 have been duly complied with, he shall record an entry of the statement in a register called the Register of Firms, and shall file the statement.

STATE AMENDMENTS

Karnataka

Amendment of section 59A.—

In section 59A of the Indian Partnership Act, 1932 (Central Act IX of 1932), in sub-section (1), for the words “by reason of the reorganization of States”, the words, figures and brackets “by reason of the addition of the Bellary District to the State of Mysore under the Andhra State Act, 1953 (Central Act XXX of 1953), or of the reorganization of States under the States Reorganisation Act, 1956 (Central Act 37 of 1956)” shall be substituted.

[Vide Karnataka Act 19 of 1961, s. 2]

Maharashtra

Amendment of section 59A-1 of IX of 1932.-In section 59A-1 of the Indian Partnership Act, 1932 (IX of 1932), in its application to the State of Maharashtra (hereinafter referred to as "the principal Act"), for the words "one hundred rupees" the words "one thousand rupees" shall be substituted.

[Vide Maharashtra Act 16 of 2018, s. 2]

Goa, Daman and Diu

As required under the Ease of Doing Business, Government of Goa, Law (Establishment) Division and Registration Department hereby mandates “Registration of Partnership Firms” shall be accepted and processed Online only without requiring the applicant to submit a physical copy of the application or associated supporting documentation including executed deed of Partnership. The department staff (all Sub-Registrar Officers) are hereby instructed to process application through the online mode only.

Further, it is also mandated that all queries against applicants, applications (if any) should be submitted to the applicants only once and within 7 days of receipt of the application.

This Notification shall come into force with effect from 8th of March, 2019.

This issues in supersession to earlier Notification of even number dated 11-12-2018 and all the Partnership Firms registration initiated under Online Partnership Registration Web Application/Website (https://partnership.goa.gov.in).

(Published in the Official Gazette Series I No. 49(Extraordinary) dated 7-3-2019) (w.e.f. 8/8/2018- LD(Estt)/470 dated 7th March 2019.)

60. Recording of alterations in firm name and principal place of business.—

(1) When an alteration is made in the firm name or in the location of the principal place of business of a registered firm, a statement may be sent to the Registrar accompanied by the prescribed fee, specifying the alteration, and signed and verified in the manner required under section 58.

(2) When the Registrar is satisfied that the provisions of sub-section (1) have been duly complied with, he shall amend the entry relating to the firm in the Register of Firms in accordance with the statement, and shall file it along with the statement relating to the firm filed under section 59.

61. Noting of closing and opening of branches.—

When a registered firm discontinues business at any place or begins to carry or business at any place, such place not being its principal place of business, any partner or agent of the firm may send intimation thereof to the Registrar, who shall make a note of such intimation in the entry relating to the firm in the Register of Firms, and shall file the intimation along with the statement relating to the firm filed under section 59.

62. Noting of changes in names and addresses of partners.—

When anypartner in a registered firm alters his name or permanent address, an intimation of the alteration may be sent by any partner or agent of the firm to the Registrar, who shall deal with it in the manner provided in section 61.

63. Recording of changes in and dissolution of a firm. Recording of withdrawal of a minor.—

(1) When a change occurs in the constitution of a registered firm any incoming, continuing or outgoingpartner, and when a registered firm is dissolved any person who was a partner immediately before the dissolution, or the agent of any such partner or person specially authorised in this behalf, may give notice to the Registrar of such change or dissolution, specifying the date thereof; and the Registrar shall make a record of the notice in theentry relating to the firm in the Register of Firms, and shall file the notice along with the statement relating to the firm filed under section 59.

(2) When a minor who has been admitted to the benefits of partnership in a firm attains majority and elects to become or not to become a partner, and the firm is then a registered firm, he, or his agent specially authorised in this behalf, may give notice to the Registrar that he has or has not become a partner, and the Registrar shall deal with the notice in the manner provided in sub-section (1)

64. Rectification of mistakes.—

(1) The Registrar shill have power at all times to rectify any mistake in order to bring the entry in the Register of Firms relating to any firm into conformity with the documents relating to that firm filed under this Chapter.

(2) On application made by all the parties who have signed any document relating to a firm filed under this Chapter, the Registrar may rectify any mistake in such document or in the record or note thereof made in the Register of Firms.

65. Amendment of Register by order of Court.—

A Court deciding any matter relating to a registered firm may direct that the Registrar shall make any amendment in the entry in the Register of Firms relating to such firm which is consequential upon its decision; and the Registrar shall amend the entry accordingly.

Also Check: Partnership Act Detailed Notes

66. Inspection of Register and filed documents.—

(1) The Register of Firms shall be open to inspection by any person on payment of such fee as may be prescribed.

(2) All statements, notices and intimations filed under this Chapter shall be open to inspection, subject to such conditions and on payment of such fee as may be prescribed.

67. Grant of copies.—

The Registrar shall on application furnish to any person, on payment of such fee as may be prescribed, a copy, certified under his hand, of any entry or portion thereof in the Register of Firms.

STATE AMENDMENT

Uttarakhand

Substituted of section 67.—

In Principal Act, section 67 shall be substituted as follow, namely:--

67. Grant of copies.—

The Registrar shall on online application furnish to any person, on payment of such fee as may be prescribed , a copy digitally certified under his hand of any entry or portion thereof in the register of firms.

[Vide Uttarakhand Act 5 of 2019, s. 3]

68. Rules of evidence.—

(1) Any statement, intimation or notice recorded or noted in the Register of Firms shall, as against any person by whom or on whose behalf such statement, intimation or notice was signed, be conclusive proof of any fact therein stated.

(2) A certified copy of an entry relating to a firm in the Register of Firms may be produced in proof of the fact of the registration of such firm, and of the contents of any statement, intimation or notice recorded or noted therein.

STATE AMENDMENT

Uttarakhand

Amendment of section 68.—

In Principal Act, sub-section (1) of section 68 shall be substituted as follows, namely:--

68. Rules of Evidence:--

(1) Any statement, intimation or notice recorded or noted in the register of Firms shall, as against any person by whom or on whose behalf such statement, intimation or notice was digitally signed, be conclusive proof of any fact therein stated.

[Vide Uttarakhand Act 5 of 2019, s. 4]

69. Effect of non-registration.—

(1) No suit to enforce a right arising from a contract or conferred by this Act shall be institutes 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.

(2) No suit to enforce a tight arising from a contract shall be instituted in any Court by or on behalf of a firm against any third party unless the firm is registered and the persons suing are or have been shown in the Register of Firms as partners in the firm.

(3) The provisions of sub-sections (1) and (2) shall apply also to a claim of set-off or other proceeding to enforce a right arising from a contract, but shall not affect—

(a) the enforcement of any right to sue for the dissolution of a firm or for accounts of a dissolved firm, or a ay right or power to realise the property of a dissolved firm, or

(b) the powers of an official assignee, receiver or Court under the Presidency-towns Insolvency Act, 1909 (2 of 1909), or the Provincial Insolvency Act, 1920 (5 of 1920), to realise the property of an insolvent partner.

(4) This section shall not apply—

(a) to firms or to partners in firms which have no place of business in ¹ [the territories to which this Act extends], or whose places of business in ² [the said territories] are situated in areas to which, by notification under ³ [section 56], this Chapter does not apply, or

(b) to any suit or claim of set-off not exceeding one hundred rupees in value which, in the Presidency-towns, is not of a kind specified in section 19 of the Presidency Small Cause Courts Act, 1882 (15 of 1882), or, outside the Presidency-towns, is not of a kind specified in the Second Schedule to the Provincial Small Cause Courts Act, 1887 (9 of 1887), or to any proceeding in execution or other proceeding incidental to or arising from any such suit or claim.

(1. Subs. by Act 3 of 1951, s. 3 and the Schedule, for “Part A States and Part C States”.)

(2. Subs. by s. 3 and the Schedule, ibid.,for “such States”.)

(3. Subs. by Act 24 of 1934, s. 2 and the First Schedule, for “section 55”.)

STATE AMENDMENT

Maharashtra

Substitution of section 69A of IX of 1932.--

For section 69A of the principal Act, the following section shall be substituted, namely:--

"69A. Charges for delay in compliance of section 60, 61, 62 or 63.--

If any statement, intimation or notice under section 60, 61, 62 or as the case may be, 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, make suitable amendments in the records relating to the firm, upon payment of charges for delay in sending or giving the same, at the rate of rupees two thousand per year or part thereof in respect of the period between the date of expiry of the period specified in that section and the date of making the payment.”.

[Vide Maharashtra Act 16 of 2018, s. 3]

70. Penalty for furnishing false particulars.—

Any person who signs any statement, amending statement, notice or intimation under this Chapter containing any particular which he knows to be false or does not believe to be true, or containing particulars which he knows to be incomplete or does not believe to be complete, shall be punishable with imprisonment which may extend to three months, or with fine, or with both.

71. Power to make roles.—

(1) The ¹ [State Government] ² [may by notification in the Official Gazette make rules] prescribing the fees which shall accompany documents sent to the Registrar of Firms, or which shall be payable for the inspection of documents in the custody of the Registrar of Firms, or for copies from the Register of Firms:

Provided that such fees shall not exceed the maximum fees specified in Schedule I.

(2) The State Government may³ [also] make rules—

(a)prescribing the form of statement submitted under section 58, and of the verification thereof;

(b) requiring statements, intimations and notices under sections 60, 61, 62 and 63 to be in prescribed form,and prescribing the form

thereof;

(c) prescribing the form of the Register of Firms, and the mode in which entries relating to firms are to be made therein, and the mode in which such entries are to be amended or notes made therein;

(d) regulating the procedure of the Registrar when disputes arise;

(e) regulating the filing of documents received by the Registrar;

(f) prescribing conditions for the inspection of original documents;

(g) regulating the grant of copies;

(h) regulating the elimination of registers and documents;

(i) providing for the maintenance and form of an index to the Register of Firms; and

(j) generally, to carry out the purposes of this Chapter.

(3) All rules made under this section shall be subject to the condition of previous publication.

⁴ [(4) Every rule made by the State Government under this section shall be laid, as soon as it is made, before the State Legislature.]

(1. Subs. by the A.O. 1937, for “G.G. in C.”.)

(2. Subs. by Act 20 of 1983, s. 2 and the Schedule, for “may make rules” (w.e.f. 15-3-1984).

(3. Ins. by the A.O. 1937.)

(4. Ins. by Act 20 of 1983, s. 2 and Schedule (w.e.f. 15-3-1984).

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