Partnership Act, 1932

Section 66

Duty of partners to indemnify each other

⚡ Quick Answer Reference: Section 66 Partnership Act, 1932

Provision: Section 66 of Partnership Act, 1932
Act: Partnership Act, 1932
Classification: commercial
Jurisdiction: India
Summary: Under Section 66 of the Partnership Act, 1932, every partner is responsible for compensating the firm for any losses or damages caused by their actions or omissions. The firm must also compensate each partner for any liabilities incurred without their knowledge or consent, as part of the ordinary business operations.

Statutory Content

What does Section 66 of Partnership Act, 1932 say?

Every partner shall indemnify the firm for any loss or damage sustained by it in connection with any act or omission on the part of such partner. The firm shall indemnify every partner in respect of any liability incurred by him, without the knowledge and consent of such partner, in the ordinary and usual conduct of the business of the firm.

Indian StandardSection 66, Partnership Act, 1932

Bluebook (21st ed.)Partnership Act, 1932, § 66 (India)

Court Pleading StandardSection 66 of the Partnership Act, 1932

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

✓ VERIFIED FOR LEGAL ACCURACYReviewed & certified by Advocate Priya Menon (Bar Council ID: MAH/4521/2018).

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Section Meaning & Purpose

What does Section 66 of Partnership Act, 1932 mean?

Plain English Explanation

Under Section 66 of the Partnership Act, 1932, every partner is responsible for compensating the firm for any losses or damages caused by their actions or omissions. The firm must also compensate each partner for any liabilities incurred without their knowledge or consent, as part of the ordinary business operations.

Practical Interpretation

This section ensures that partners are accountable for their actions and that the firm is protected from losses. It also provides a safeguard for partners who may be held liable for actions taken by others without their knowledge or consent.

Core Legal Purpose

The core purpose of Section 66 is to promote accountability and fairness among partners, ensuring that each partner bears the consequences of their actions and that the firm is protected from unnecessary liabilities.

Key Legal Elements

•Every partner shall indemnify the firm for any loss or damage sustained by it in connection with any act or omission on the part of such partner.
•The firm shall indemnify every partner in respect of any liability incurred by him, without the knowledge and consent of such partner, in the ordinary and usual conduct of the business of the firm.
•The partner's knowledge or consent is a key factor in determining liability.
•The liability must be incurred in the ordinary and usual conduct of the business of the firm.

Practical Example

Practical Example of Section 66 Partnership Act, 1932

Rajesh and Priya are partners in a business. Rajesh makes a mistake that results in a loss of ₹10,000 for the firm. According to Section 66, Rajesh must compensate the firm for the loss. If Priya is held liable for a debt incurred by the firm without her knowledge or consent, the firm must compensate her for the liability.

Common Questions (FAQ)

Frequently Asked Questions about Section 66 Partnership Act, 1932

Q: What is the punishment or consequence under Section 66 of Partnership Act, 1932?

This section is a procedural provision and does not prescribe a penal punishment.

Q: Does this section apply to private individuals or public entities?

This section applies to private individuals who are partners in a business.

Q: Is an offence under this section bailable or cognizable?

This section is a procedural provision and does not prescribe a penal punishment.

Common Questions about Section 66 Partnership Act, 1932

What is Section 66 of Partnership Act, 1932?

Section 66 of the Partnership Act, 1932 (Partnership Act, 1932) defines and regulates "Duty of partners to indemnify each other". In plain terms: Under Section 66 of the Partnership Act, 1932, every partner is responsible for compensating the firm for any losses or damages caused by their actions or omissions. The firm must also compensate each partner for any liabilities incurred without their knowledge or consent, as part of the ordinary business operations.

What are the elements of Section 66 of Partnership Act, 1932?

The essential elements of Section 66 of Partnership Act, 1932 are: Every partner shall indemnify the firm for any loss or damage sustained by it in connection with any act or omission on the part of such partner.; The firm shall indemnify every partner in respect of any liability incurred by him, without the knowledge and consent of such partner, in the ordinary and usual conduct of the business of the firm.; The partner's knowledge or consent is a key factor in determining liability..

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