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Section 247: Sections 239 to 266 [Repealed by the Indian Partnership Act, 1932]

Indian Contract Act • Official Statutory Text & Practice Guide

Statutory Regulation
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Act 1872
Section 75 All 266 Sections of Indian Contract Act Section 77

Legal Commentary & Landmark Judgments: Section 247

Section 247 historically established that a minor may be admitted to the benefits of a partnership with the consent of all partners, limiting his liability strictly to his share in the partnership property and completely immunizing his personal estate, now reenacted as Section 30(1)-(3) of the Indian Partnership Act, 1932.

  • Admission to Benefits, Not Partner Status: A minor cannot be a full partner in law; he can only be admitted to the economic benefits of an already existing partnership with the unanimous consent of all partners.
  • Absolute Immunity of Personal Assets: The minor's liability is strictly in rem, limited to his capital contribution and accumulated profit share in the firm; his separate personal properties are completely immune from attachment for firm debts.
  • Modern Reenactment in Section 30 IPA 1932: Repealed by Act 9 of 1932 and reenacted with enhanced statutory safeguards as Section 30(1)-(3) of the Indian Partnership Act, 1932.
Key Landmark Precedents:
  • CIT v. Dwarkadas Khetan & Co. AIR 1961 SC 680: The Supreme Court held that under Indian law, a minor cannot be a full partner; a partnership deed that purports to make a minor a full partner liable for losses is void ab initio and cannot be registered under tax laws.
  • Shivagouda Ravji Patil v. Chandrakant Neelkanth AIR 1965 SC 212: The Supreme Court held that a minor admitted to the benefits of a partnership cannot be adjudicated insolvent for firm debts, as insolvency is a personal liability from which minors are exempt under Section 247 / Section 30 IPA.
  • Mohori Bibee v. Dharmodas Ghose (1903) 30 IA 114: The Privy Council established the foundational principle of a minor's absolute contractual incapacity under Section 11 of the Contract Act, informing the protective scope of Section 247.
Courtroom Practice & Strategic Litigation Guidance:

When drafting partnership agreements involving minors, frame the covenant strictly as 'admission to benefits of partnership' under Section 30 of IPA 1932, excluding liability for losses. In execution proceedings, file an objection under Section 47 CPC to release any personal assets of a minor improperly attached for firm debts.

Section 75 All 266 Sections of Indian Contract Act Section 77