Section 9 of IPA : Section 9: General Duties Of Partners

Explanation using Example

An example of the application of Section 9 of The Indian Partnership Act, 1932 could be a scenario where three individuals, A, B, and C, have formed a partnership to run a restaurant. According to Section 9, all partners must work towards the most significant common benefit of the restaurant business. If Partner A decides to purchase ingredients from a vendor at a higher price due to a personal relationship with the vendor, despite knowing that another vendor offers a better price for the same quality, A would be violating Section 9. This is because A's actions do not contribute to the greatest common advantage of the firm. Partner B and C can demand that A acts in the best interest of the firm and also provide full information regarding the purchase decisions. If A fails to do so, B and C may have legal grounds to address the breach of the duty imposed by Section 9.