Question

According to which section of the Indian Partnership Act, 1932 states that the outgoing partner has an option to receive either interest @ 6% p.a. till the date of payment or such share of profits which has been earned with his/her money (i.e., based on capital ratio)?

विकल्प

• Section 37

• Section 38

• Section 39

• Section 36

Answer 1

Section 37

Explanation:

In the absence of a written agreement, Section 37 of the Indian Partnership Act, 1932 applies, which provides that the outgoing partner has the option of receiving either interest at 6% per year until the date of payment or a portion of profits produced with his or her money (i.e., based on capital ratio). As a result, the complete sum owing to the retiring partner, as determined after all adjustments, must be given to the retiring partner immediately.