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.
Anurag Pathak Changed status to publish April 9, 2023
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.
Anurag Pathak Changed status to publish April 9, 2023
