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Krish, Kamya and Ketan are partners in a firm. They jointly promised to pay Rs. 6,00,000 to Dia. Kamya become insolvent and her private assets are sufficient to pay 1/5 of her share of debts. Krish is compelled to pay the whole amount to Dia. Examining the provisions of the Indian Contract Act, 1872, decide the extent to which Krish can recover the amount from Ketan?
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Krish, Kamya and Ketan are partners in a firm. They jointly promised t...
Extent of Recovery by Krish from Ketan in Partnership Firm
According to the Indian Contract Act, 1872, the liability of partners in a partnership firm is joint and several. This means that each partner is individually responsible for the entire debt of the firm. In this case, Kamya's insolvency has left Krish solely responsible for paying the entire debt of Rs. 6,00,000 to Dia. Therefore, Krish has the right to recover a portion of the debt from Ketan.
Provisions of the Indian Contract Act, 1872
The Indian Contract Act, 1872 provides for the following provisions in case of insolvency of a partner in a partnership firm:
1. The private assets of a partner can be used to pay off their share of debts.
2. If any partner becomes insolvent, the remaining partners are liable to pay off their share of debts.
3. If one partner is forced to pay off the entire debt of the firm, they have the right to recover a portion of the debt from the other partners.
Extent of Recovery by Krish from Ketan
In this case, Kamya's private assets are sufficient to pay only 1/5th of her share of debts. Therefore, Krish is left with the responsibility of paying the remaining debt. As per the provisions of the Indian Contract Act, Krish can recover a portion of the debt from Ketan.
The extent of recovery will depend on the partnership agreement between Krish, Kamya, and Ketan. If the agreement specifies the proportion of liability of each partner, then Krish can recover a portion of the debt from Ketan based on their proportion of liability. If the agreement does not specify the proportion of liability, then Krish can recover an equal portion of the debt from Ketan.
In conclusion, Krish can recover a portion of the debt from Ketan as per the provisions of the Indian Contract Act, 1872. The extent of recovery will depend on the partnership agreement between the partners.
According to the Indian Contract Act, 1872, the liability of partners in a partnership firm is joint and several. This means that each partner is individually responsible for the entire debt of the firm. In this case, Kamya's insolvency has left Krish solely responsible for paying the entire debt of Rs. 6,00,000 to Dia. Therefore, Krish has the right to recover a portion of the debt from Ketan.
Provisions of the Indian Contract Act, 1872
The Indian Contract Act, 1872 provides for the following provisions in case of insolvency of a partner in a partnership firm:
1. The private assets of a partner can be used to pay off their share of debts.
2. If any partner becomes insolvent, the remaining partners are liable to pay off their share of debts.
3. If one partner is forced to pay off the entire debt of the firm, they have the right to recover a portion of the debt from the other partners.
Extent of Recovery by Krish from Ketan
In this case, Kamya's private assets are sufficient to pay only 1/5th of her share of debts. Therefore, Krish is left with the responsibility of paying the remaining debt. As per the provisions of the Indian Contract Act, Krish can recover a portion of the debt from Ketan.
The extent of recovery will depend on the partnership agreement between Krish, Kamya, and Ketan. If the agreement specifies the proportion of liability of each partner, then Krish can recover a portion of the debt from Ketan based on their proportion of liability. If the agreement does not specify the proportion of liability, then Krish can recover an equal portion of the debt from Ketan.
In conclusion, Krish can recover a portion of the debt from Ketan as per the provisions of the Indian Contract Act, 1872. The extent of recovery will depend on the partnership agreement between the partners.
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Krish, Kamya and Ketan are partners in a firm. They jointly promised to pay Rs. 6,00,000 to Dia. Kamya become insolvent and her private assets are sufficient to pay 1/5 of her share of debts. Krish is compelled to pay the whole amount to Dia. Examining the provisions of the Indian Contract Act, 1872, decide the extent to which Krish can recover the amount from Ketan?
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Krish, Kamya and Ketan are partners in a firm. They jointly promised to pay Rs. 6,00,000 to Dia. Kamya become insolvent and her private assets are sufficient to pay 1/5 of her share of debts. Krish is compelled to pay the whole amount to Dia. Examining the provisions of the Indian Contract Act, 1872, decide the extent to which Krish can recover the amount from Ketan? for CA Foundation 2024 is part of CA Foundation preparation. The Question and answers have been prepared according to the CA Foundation exam syllabus. Information about Krish, Kamya and Ketan are partners in a firm. They jointly promised to pay Rs. 6,00,000 to Dia. Kamya become insolvent and her private assets are sufficient to pay 1/5 of her share of debts. Krish is compelled to pay the whole amount to Dia. Examining the provisions of the Indian Contract Act, 1872, decide the extent to which Krish can recover the amount from Ketan? covers all topics & solutions for CA Foundation 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Krish, Kamya and Ketan are partners in a firm. They jointly promised to pay Rs. 6,00,000 to Dia. Kamya become insolvent and her private assets are sufficient to pay 1/5 of her share of debts. Krish is compelled to pay the whole amount to Dia. Examining the provisions of the Indian Contract Act, 1872, decide the extent to which Krish can recover the amount from Ketan?.
Krish, Kamya and Ketan are partners in a firm. They jointly promised to pay Rs. 6,00,000 to Dia. Kamya become insolvent and her private assets are sufficient to pay 1/5 of her share of debts. Krish is compelled to pay the whole amount to Dia. Examining the provisions of the Indian Contract Act, 1872, decide the extent to which Krish can recover the amount from Ketan? for CA Foundation 2024 is part of CA Foundation preparation. The Question and answers have been prepared according to the CA Foundation exam syllabus. Information about Krish, Kamya and Ketan are partners in a firm. They jointly promised to pay Rs. 6,00,000 to Dia. Kamya become insolvent and her private assets are sufficient to pay 1/5 of her share of debts. Krish is compelled to pay the whole amount to Dia. Examining the provisions of the Indian Contract Act, 1872, decide the extent to which Krish can recover the amount from Ketan? covers all topics & solutions for CA Foundation 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Krish, Kamya and Ketan are partners in a firm. They jointly promised to pay Rs. 6,00,000 to Dia. Kamya become insolvent and her private assets are sufficient to pay 1/5 of her share of debts. Krish is compelled to pay the whole amount to Dia. Examining the provisions of the Indian Contract Act, 1872, decide the extent to which Krish can recover the amount from Ketan?.
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Krish, Kamya and Ketan are partners in a firm. They jointly promised to pay Rs. 6,00,000 to Dia. Kamya become insolvent and her private assets are sufficient to pay 1/5 of her share of debts. Krish is compelled to pay the whole amount to Dia. Examining the provisions of the Indian Contract Act, 1872, decide the extent to which Krish can recover the amount from Ketan?, a detailed solution for Krish, Kamya and Ketan are partners in a firm. They jointly promised to pay Rs. 6,00,000 to Dia. Kamya become insolvent and her private assets are sufficient to pay 1/5 of her share of debts. Krish is compelled to pay the whole amount to Dia. Examining the provisions of the Indian Contract Act, 1872, decide the extent to which Krish can recover the amount from Ketan? has been provided alongside types of Krish, Kamya and Ketan are partners in a firm. They jointly promised to pay Rs. 6,00,000 to Dia. Kamya become insolvent and her private assets are sufficient to pay 1/5 of her share of debts. Krish is compelled to pay the whole amount to Dia. Examining the provisions of the Indian Contract Act, 1872, decide the extent to which Krish can recover the amount from Ketan? theory, EduRev gives you an
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