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Law · Q523

Indian Partnership Act

Graduate and Post Graduate · Law · question 523

Q523

After the liabilities of the firm to creditors, on dissolution, have been satisfied, passing the remaining assets not sufficient to repay the capital in full, and one of the partner fails to pay his share on account of his insolvency, the solvent partners are

A.
Not bound to make up the share of losses of the insolvent partner
Answer
B.
Bound to make up the share of losses of the insolvent partner
C.
Bound to make up the share of losses of the insolvent partner only if directed by the court
D.
Either (A) or (C)

Answer: Option A

Solution

Answer: Option A
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