Section 14: The Property Of The Firm | The Indian Partnership Act 1932

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Explanation using Example

Imagine three friends, Aarav, Bhavika, and Chetan, decide to start a catering business together. They agree that Aarav will contribute kitchen equipment, Bhavika will provide her minivan for deliveries, and Chetan will invest cash to purchase ingredients. As per Section 14 of The Indian Partnership Act, 1932, the kitchen equipment, the minivan, and the ingredients purchased with Chetan's cash are all considered the property of the firm, assuming there's no contract stating otherwise between them.

If later, the business uses profits to buy a refrigerator, even though the refrigerator is bought with the firm's money and not directly by any partner, it is still considered property of the firm. This is because the refrigerator was acquired for the purposes of the business and with money belonging to the firm.