Section 51 of the Indian Partnership Act, 1932 – Return of premium on premature dissolution

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Section 51: Return of premium on premature dissolution

Where a partner has paid a premium on entering into partnership for a fixed term, and the firm is dissolved before the expiration of that term otherwise than by the death of a partner, he shall be entitled to repayment of the premium or of such part thereof as may be reasonable, regard being had to the terms upon which he became a partner and to the length of time during which he was a partner, unless–

  • (a) the dissolution is mainly due to his own misconduct, or
  • (b) the dissolution is in pursuance of an agreement containing no provision for the return of the premium or any part of it.

Source: official text of The Indian Partnership Act, 1932 as published on India Code (PDF). All sections of the Indian Partnership Act, 1932.

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