INTRODUCTION

In this paper researcher first analyzes the current registration procedure of general partnerships
under section 57 to section 59 in Chapter 7 of the Act and also Limited Liability Partnership,
which was introduced recently. On the day-to-day basis many partnerships are entered into but
due to the optional nature of registration in Indian Partnership law, many partnerships are not
registered. Report of Special Committee in Para 12-24 states the reason for the same, which is
majorly due to the short time and single ventured nature of partnerships prevalent in India at the
time of formation. Section 69, which deals with effects of non-registration of partnership firm
make registration of partnership firm highly recommendatory.

The true intention behind writing this paper that according to the researcher Partnership Law
which is so crucial for business transactions is still working according to around century-old
legislation. After Indian independence, there are many changes in Indian scenario and sticking to
the same old legislations is creating new problems, which were not foreseeable at the time of the
drafting of this legislation, one of the prominent area being non-registration of firms. Here in this
paper after analyzing the current scope and judicial trend researcher felt there is some ambiguity
in the sections regarding the registration.

Analyzing the registration provisions in English Law and referring to the Reports of Law
Commissions researcher is trying to give some suggestions for better implementation of
Partnership Law in India.

Definition

A Partnership is defined by the Indian Partnership Act, 1932, as 'the relation between persons
who have agreed to share profits of the business carried on by all or any of them acting for all'.
This definition gives three minimum requirements to constitute a partnership, viz.

there must be an agreement entered into orally or in writing by the persons who desire to
form a partnership,
the object of the agreement must be to share the profits of business intended to be carried
on by the partnership.
Historical :
The Indian Partnership Act was enacted in 1932 and it came into force on 1st day of October,
19321. The present Act superseded the earlier law relating to Partnership, which was contained in
Chapter XI of the Indian Contract Act,1872. The Act is not exhaustive. It purports To defineand
amend the law relating to Partnership.2

A Partnership arises from a contract, and therefore , such a contract is governed not only by the
provisions of the Partnership Act in that regard , but also by the general law of contract in such
matters, where the Partnership Act does not specifically make any provision. It has been
expressly provided in the Partnership Act that un repealed provisions of the Indian Contract Act ,
1872 , save in so far as they are inconsistent with the express provisions of this act , shall
continue to apply. Thus, the rules relating to offer and acceptance , consideration , free consent ,
legality of object ,etc, as contained in the Indian Contract Act are applicable to a contract of
Partnership also.

1
Sec. 57, Indian Partnership Act,1932.
2
Sec. 59, Indian Partnership Act,1932