Law:

Section:

(a) Partnership Act (IX of 1932); S.15-Partnership property­Partner's share not separate property-Share becomes separate and only on division of assets according to provisions of Act, and not on mere dissolution. Section 15 declares that subject to contract between the partners the property of the firm shall be held and used by the partners exclusively for the purposes of the business. This precludes the possibility of any of the partnership property being, or being deemed to be, separate property of any partner for so long as the partnership subsists. Again, a mere dissolution without division of assets as provided by the Act does not have the effect of ascertainment of the separate property of any partner. Dissolu­tion may, as provided by section 43 of the Act, take effect by delivery of notice of an intention to dissolve., but while this may furnish a starting point for the ascertainment of the interests of the partners which had become legally separated as from the date of the notice, yet the condition does not come into existence, by the mere effectuation of such a legal and notional dissolution, in which any partner can point to any piece of the partnership property as belonging to himself alone. That can only happen after action has been taken as provided by sections 46, 48 and 49 of the Act. These sections require that the debts and liabilities of the partner­ship should be first met out of the property of the firm and thereafter the assets should be applied in rateable payment to each partner of what is due to him, firstly, on account of advances as distinguished from capital, and, secondly, on account of capital and thirdly, the residue, if any, should be divided rateably among all the partners. Therefore, the conception of the share of a partner in the assets of the partnership does not take a real and concrete shape until these processes have been gone through. It was impossible to speak of a partner's separate share in the partnership property having come into existence either on the date on which he filed his suit for dissolution or on the date of the preliminary decree in such suit. (b) Partnership Act (IX of 1932), Ss. 17 & 43-Partnership at…

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