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Section 19 of Indian Partnership Act, 1932

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Section 19 of Indian Partnership Act, 1932 deals with Implied authority of partner as agent of the firm.

From the Act

(1) Subject to the provisions of section 22, the act of a partner which is done to carry on, in the usual way, business of the kind carried on by the firm, binds the firm.

The authority of a partner to bind the firm conferred by this section is called his " implied authority ".

(2) In the absence of any usage or custom of trade to the contrary, the implied authority of a partner does not empower him to-

(a) submit a dispute relating to the business of the firm to arbitration,

(b) open a banking account on behalf of the firm in his own name,

(c) compromise or relinquish any claim or portion of a claim by the firm,

(d) withdraw a suit or proceeding filed on behalf of the firm,

(e) admit any liability in a suit or proceeding against the firm,

(f) acquire immoveable property on behalf of the firm,

(g) transfer immoveable property belonging to the firm, or

(h) enter into partnership on behalf of the firm.


Recent Cases / Related Cases / Case Law

Related Sections from the Act

  • Section 18: Partner to be agent of the firm
  • Section 20: Extension and restriction of partner's implied authority
  • Section 21: Partner's authority in an emergency
  • Section 22: Mode of doing act to bind firm
  • Section 23: Effect of admissions by a partner
  • Section 24: Effect of notice to acting partner
  • Section 25: Liability of a partner for acts of the firm
  • Section 26: Liability of the firm for wrongful acts of a partner
  • Section 27: Liability of firm for misapplication by partners
  • Section 28: Holding out
  • Section 29: Rights of transferee of a partner's interest
  • Section 30: Minors admitted to the benefits of partnership

Related Acts