Ram & Co., a firm consists of three partners A, B and C having one third share each in the firm. According to A and B, the activities of C are not in the interest of the partnership and thus want to expel C from the firm. Advise A and B whether they can do so quoting the relevant provisions of the Indian Partnership Act, 1932.
It is not possible for the majority of partners to expel a partner from the firm without satisfying the conditions as laid down in Section 33 of the Indian Partnership Act, 1932. The essential conditions before expulsion can be done are: \n(i) the power of expulsion must have existed in a contract between the partners;\n(ii) the power has been exercised by a majority of the partners; and\n(iii) It has been exercised in good faith. \nThe test of good faith includes: \n(a) that the expulsion must be in the interest of the partnership; \n(b) that the partner to be expelled is served with a notice; and \n(c) that the partner has been given an opportunity of being heard. \nThus, in the given case A and B the majority partners can expel the partner only if the above conditions are satisfied and procedure as stated above has been followed.
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