Which act governs partnerships in India?

The Indian Partnership Act, 1932 serves as the primary legislation governing partnerships in India. This act defines what constitutes a partnership and lays out the rights and duties of partners, as well as the provisions for the formation, operation, and dissolution of partnerships. It establishes key principles like the mutual agency of partners, the sharing of profits and losses, and the importance of written agreements in formalizing partnerships.

On the other hand, while the Indian Companies Act, 2013 pertains to companies and corporate structures rather than partnerships, the Limited Liability Partnership Act, 2008 introduces a new form of business, allowing for a hybrid structure that combines elements of partnerships and companies but does not replace the original partnership framework outlined in the 1932 act. The Negotiable Instruments Act, 1881 focuses on the regulation of negotiable instruments like cheques and promissory notes, and is not related to the governance of partnerships.

Thus, the Indian Partnership Act, 1932 is the correct and relevant legal framework specifically for partnerships in India.