Question

According to the Indian Partnership Act, 1932, interest payable on the amount due to the deceased partner is ______.

Options

• 6% p.a.

• 6%.

• 10% p.a.

• 10%.

Answer 1

According to the Indian Partnership Act, 1932, interest payable on the amount due to the deceased partner is 6% p.a.

Explanation:

Section 37 of the Indian Partnership Act, 1932 provides that where the amount due to a retiring partner (or the legal representatives of a deceased partner) is not paid immediately, it is treated as a loan and, in the absence of an agreement to the contrary, carries interest at 6% per annum until repaid; alternatively the claimant may opt to receive the share of profits earned from the use of that amount.