Section 42 Partnership Act, 1932 Explained: Duty of partners to indemnify partner in respect of payments made and debts contracted by him in cases of insolvency | Nyaya

Statutory Content

What does Section 42 of Partnership Act, 1932 say?

Where a partner is adjudged insolvent, every other partner shall indemnify the firm for any loss or damage sustained by the firm by reason of any payment made, or any debt contracted, by the insolvent partner in good faith in or for the benefit of the firm, and shall also indemnify every other partner in respect of any loss or damage sustained by him in consequence of any dishonest act or omission of the insolvent partner.

Indian StandardSection 42, Partnership Act, 1932

Bluebook (21st ed.)Partnership Act, 1932, § 42 (India)

Court Pleading StandardSection 42 of the Partnership Act, 1932

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Source: Gazette of India (Official Publication)Verify egazette.gov.in ↗

Common Questions about Section 42 Partnership Act, 1932

What is Section 42 of Partnership Act, 1932?

Section 42 of the Partnership Act, 1932 (Partnership Act, 1932) defines and regulates "Duty of partners to indemnify partner in respect of payments made and debts contracted by him in cases of insolvency". The section states: Where a partner is adjudged insolvent, every other partner shall indemnify the firm for any loss or damage sustained by the firm by reason of any payment made, or any debt contract...

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