”31. (1) Subject to a contract between the partners and the provisions of S. 30, no person may be admitted as a partner without the consent of all existing partners.” This deed of Partnership does to … on this … On the day of the… between M/s A B – Co., a partnership company composed and represented by its partners (1)… (2)… (3) below referred to as ”part of the first part” and sir. B residing in …

and in his capacity as Karta or administrator of his common and undivided Hindu family, the party of the second party. Partnership is a relationship between people who have agreed to share the benefits of a company run by all or by one of them acting for all. Therefore, to become a partner in a partnership company, the partner should be a natural person or be legally recognized as a person. The question is whether, after Nandlal`s death, his heirs, that is, members of his family branch, automatically became partners of that company. The answer to the question is at page 42 of the Indian Partnership Act, 1932 (9 of 1932), the material part of which is: ”Subject to contract between partners, a company is dissolved by the death of a partner.” While the qualified Attorney General argued for the applicant that S. 42 applied only to a partnership of more than two partners, the respondent, Mr. Karkhanis, argued that the section did not constitute such a restriction and that it also applied, on its terms, to a partnership composed of only two partners. It was argued that the contract mentioned in the performance surcharge clause was a contract between the partners and that if the contracting parties agreed that in the event of the death of one of them his successor would be admitted in his place, that contract would bind the surviving member. After the death of one of the partners, it was said, his legacy would be automatically included in the partnership, whereas after such an entry, he could choose to leave the partnership.

This conclusion, the argument goes on, was also supported by S. 31 of the Partnership Act. Page 31 of the Partnership Act: a partnership is created by a contract between partners, while a common Hindu family (hereafter huf) is created by status, that is, birth in the family. Therefore, if two or more members of an HUF are engaged in an inherited business, it is not a partnership, since it was created by the statute or was obtained by birth and not by an agreement. An act of patnership was recorded between Karta of ”HUF” and 2 individuals ”A” and ”B”. (3 partners) ”This is the contract referred to, the contract between the two partners Gorak Nath and Champlal . . . . Therefore, it cannot be said that the contract no longer took effect because a partner died. The contract was there. There was no new contract with the heirs and there was no question of a new contract with the heirs because of the original contract, and under the original contract, the heirs become partners once one of the partners died…

. Once dead, the heirs automatically become partners without agreement between the original partners because of the initial agreement between the partners while they survived. We can`t talk about interregnum. As soon as death occurs, someone else`s right comes into effect. The question of interregnum does not arise. The heirs do not become partners because of a contract between the heirs on one side and the other partners on the other side, but because of the contract between the original partners of the company. 1. Contracting Parties: Day of … to combine their respective operations with all the assets and agree to continue the transaction in question in partnership between the part of the first part, on the one hand, and the part of the second part, on the other.