HELPER GIRDHAR BHAI V. SAIYAD MOHD. MISRASAHEB KADRI AIR 1987 SC 1782

HELPER GIRDHAR BHAI V. SAIYAD MOHD. MISRASAHEB KADRI AIR 1987 SC 1782

Supreme Court observed that "Whether there was a partnership or not may in certain cases be a mixed question of law and fact, in the sense that whether ingredients of partnership as embodied in the law of partnership were there or not in a particular case must be judged in the light of principles applicable to partnership.

That has to be found in Section 4 of Partnership Act, it says: "Partnership is the relation between persons who have agreed to share the profits of a business carried on by all or any of them acting for all". Section 6 of said Act reiterates that in determining whether a group of persons is or is not a firm or whether a person is or is not partner in a firm regard shall be had to real relation between the parties as shown by all relevant facts taken together.

The following important elements must be there in order to establish partnership:

  • There must be an agreement entered into by all parties concerned.
  • Agreement must be to share profits.
  • Business must be carried on by all or any of them acting for all."