11th Commerce · Part

firm By order of count Without order of count Mutual Agreement Insolvency of all except one partner Business becoming unlawful Compulsory Dissolution On the occurrence of contingencies By notice Insanity Permanent Incapacity Misconduct Breach of agreement Transfer of Interest Perpetual Losses Any other just and equitable ground iv. By notice of dissolution In the case of partnership at will when any partner gives in writing to all the other partners indicating his intention to dissolve the firm, the firm will be dissolved. v. On certain contingencies: Dissolution of partnership itself may involve the dissolution of the firm unless parties agree to continue it otherwise, it will take place.

i. On the expiry of a specified period in case of partnership for a fixed term. ii. On the completion of a particular adventure for which it has been formed in case of particular partnership.

iii. On the death of a partner. iv. On the retirement of a partner.

v. On the insolvency of a partner. In all the above cases if the business is not continued by the remaining partners, dissolution of the firm takes place automatically. b.

Dissolution through court The court may order dissolution of a firm at a suit of a partner in any of the following circumstances. a. When a partner becomes insane b. Permanent incapacity of any partner c.

Misconduct of any partner d. Breach of agreement which makes the business impracticable e. Transfer of interest to third person f. Continued loss g.

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Key Terms Karta Mitakshara Law Dayabhaga Law Coparceners Separate Legal Entity Dissolution For own thinking i. Write any HUF run Hospitals in your nearest place. ii. How will you run a HUF for export business?

iii. How will you run a HUF Bus operating business? iv. How will you organise a partnership business with your friends according to a law?

v. Name a Partnership firm in your town (Nearest). For Future Learning a) Raman with members of his extended family established a Joint Hindu Family business of Handicrafts. Raman being the head of family controlled the business as ‘Karta’.

He had authority to take all decisions for the business. Many times, he sold goods for cash without informing other members of the family business. This resulted in lesser profits. He also sold one of the family properties and gave money to his daughter as a wedding gift.

What values did karta ignored in the above case? b) Palani is an Electronics Engineer. He has met two businessmen who wish to enter into a partnership with him for the manufacture of tape-recorders. They are prepared to make the investment and offer a fourth share in profits to Palani.

Would you have any special words of advice for Palani? Case Study a) A father had self acquired agricultural land. He transferred the said land in the name of his three sons. The revenue records reflect the names of the three sons with /3rd share against each name.

Father died recently. However physical partition of the said land amongst the three brothers has not been done as they have mutually decided against it. Eldest son has started managing the land since fathers demise. Is the land in question ancestral property of the three brothers ?

Can the three brothers claim to a HUF? If yes, then since when are they HUF – after fathers demise or since the date land transferred in their names? b) Draw a family tree diagram as you think. Just imagine you are running a business under the Joint Hindu Family system.

. A partnership is formed by a. agreement b. relationship among persons c.

the direction of government d. Friendship Answers: . b . b .

b . b . a II. Very Short Answer Questions .

Who is called KARTA? . What are the two schools of Hindu law? .

Who is called a Partner? . Who is a Sleeping partner? .

How many types of Dissolution? III. Short Answer Questions . Write any three features of HUF.

. What is the minimum and maximum number of members in the partnership concern? . What is the meaning of Partnership Deed?

IV. Long Answer Questions . What are the contents of Partnership Deed? (any ) .

Explain the types of dissolution of partnership firm. (any ) . Write the procedure for Registration of a Firm. (any ) Exercise I.

Choose the Correct Answer . The firm of Hindu Undivided Family is managed by whom? a. Owner b.

Karta c. Manager d. Partner . In the firm of Hindu Undivided Family, how one gets the membership?

a. By Agreement b. By Birth c. By Investing Capital d.

By Managing . The members in the joint hindu family are called a. Karta b. coparceners c.

generations d. partners . ‘Only the male members in the family get the right of inheritance by birth’ as a. Hindu law b.

Mitakshara Law c. Dayabhaga law d. None of these . Sherlekar,S.A., Sherlekar,V.S, Business Organisation and Management .

Rao,V.S.P, , Business Organisation, . Reference . Bhushan,Y.K, , Business Organisation and Management . Sundar,K , Business Organisation