Section 31 of IPA : Section 31: Introduction Of A Partner

Explanation using Example

Imagine a partnership firm called 'Tech Innovators' which specializes in developing software. The firm originally has three partners: Aarav, Bella, and Carlos. They have agreed in their partnership deed that any new partner can only be added with the unanimous consent of all existing partners.

One day, they meet Deepika, who has expertise in marketing and a wide network of potential clients. They all agree that her skills would be valuable to the firm. According to Section 31(1) of The Indian Partnership Act, 1932, they can only introduce Deepika as a partner if Aarav, Bella, and Carlos all consent to her joining.

After discussing, all three agree and Deepika is introduced as a new partner. However, a week before Deepika joined, 'Tech Innovators' had entered into a contract which resulted in a dispute. As per Section 31(2), Deepika would not be liable for this dispute because it occurred before she became a partner.