can a partner claim interest on his capital if it is not included in p...
accordind to partnership act if info. about int is not given in deed no partner can claim
can a partner claim interest on his capital if it is not included in p...
Claiming Interest on Capital in Partnership
In a partnership, the terms and conditions regarding the capital contributions of partners, including the treatment of interest on capital, are typically outlined in the partnership deed. However, if the partnership deed does not specifically address the issue of interest on capital, partners may still be able to claim interest on their capital contributions under certain circumstances.
Implied Agreement
Partners may be able to claim interest on their capital if it can be established that there was an implied agreement between the partners regarding the payment of interest. This could be inferred from the conduct of the partners or the customary practices in the industry.
Legal Precedent
In some jurisdictions, there may be legal precedent or statutory provisions that allow partners to claim interest on their capital even if it is not explicitly mentioned in the partnership deed. Partners can seek legal advice to determine if they have a legal basis for claiming interest on their capital.
Unjust Enrichment
Partners may also be able to claim interest on their capital on the grounds of unjust enrichment. If one partner is benefiting unfairly from the use of the capital contributed by another partner, the disadvantaged partner may be entitled to claim interest to compensate for this imbalance.
Equitable Principles
Partnerships are governed by equitable principles, which aim to ensure fairness and justice among partners. If it can be shown that the failure to pay interest on capital would be inequitable or unjust, partners may be able to claim interest based on these principles.
In conclusion, while the specific terms regarding interest on capital should ideally be included in the partnership deed, partners may still have avenues to claim interest on their capital through implied agreements, legal precedent, unjust enrichment, or equitable principles. It is advisable for partners to seek legal advice to determine the best course of action in such situations.