Raj and Shyam are Partners in a firm having no Partnership Deed. Raj has advanced ₹ 10,000 as loan to the firm. He claims interest at the usual rate of interest of 12% p.a. as charged by the banks to which Shyam does not agree. State giving reason, which of the two is correct in this case.
Raj and Shyam are Partners in a firm having no Partnership Deed. Raj has advanced ₹ 10,000 as a loan to the firm. He claims interest at the usual rate of interest of 12% p.a. as charged by the banks to which Shyam does not agree. State giving reason, which of the two is correct in this case.
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Answer:-
Both are incorrect because, in the absence of the Partnership Deed, the provisions of the Indian Partnership Act, of 1932 will apply. As per the Indian Partnership Act, 1932, a partner who has given a loan to the firm without any agreement, can be allowed interest @ 6% p.a. Hence, Raj can get interest, @ 6% p.a. and not @ 12% p.a. on the loan given by him.
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