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Section 248: Sections 239 to 266 [Repealed by the Indian Partnership Act, 1932]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 248

Section 248 historically regulated the election of a minor admitted to the benefits of a partnership upon attaining majority, providing that silence or failure to disclaim resulted in full partner status with retroactive liability, now reenacted as Section 30(5) & 30(7) of the Indian Partnership Act, 1932.

  • Six-Month Statutory Window for Election: Upon attaining majority (or obtaining knowledge of admission), the erstwhile minor has a statutory window of six months to give public notice electing whether to become or decline to become a partner.
  • Deemed Partnership by Inaction: If the erstwhile minor fails to give public notice within the prescribed six months, he automatically becomes a full partner by statutory fiction upon the expiry of that period.
  • Retroactive Unlimited Personal Liability: Upon becoming a partner (by election or silence), his personal liability for all debts of the firm attaches retrospectively from the original date of his admission to the benefits of the firm.
Key Landmark Precedents:
  • Shivagouda Ravji Patil v. Chandrakant Neelkanth AIR 1965 SC 212: The Supreme Court analyzed Section 248 and Section 30 of IPA 1932, confirming that an admitted minor who attains majority and fails to disclaim becomes personally liable for all obligations incurred since his initial admission.
  • Goenka v. CIT AIR 1971 SC 1033: The Supreme Court affirmed that the statutory fiction of deemed partnership under Section 30(5) operates automatically upon the expiry of six months from attaining majority without requiring a new partnership deed.
  • Firm of S.P. v. Firm of P.L. AIR 1931 PC 149: The Privy Council held that where a minor on attaining majority participates in the firm's business, he affirms his status as a full partner under Section 248 principles.
Courtroom Practice & Strategic Litigation Guidance:

Immediately upon a client who was admitted to partnership benefits turning 18, advise the issuance of public notice in the Official Gazette and local newspapers under Section 30(5) of IPA 1932 within the strict six-month deadline if he wishes to sever ties, preventing catastrophic retroactive personal liability.

Section 75 All 266 Sections of Indian Contract Act Section 77