Section 23: Admissions by a partner as evidence

Central rule and applicability

The statement must concern the firm's affairs and be made in the ordinary course of business. When those conditions are satisfied, the partner's admission or representation is evidence against the firm. It can therefore matter how partners describe transactions, balances or business events to others.

Limits and related provisions

The section says evidence, not conclusive determination of every liability. A statement about a private matter or outside the ordinary course is not automatically brought within this rule. Authority to admit liability in litigation is separately addressed in Section 19, and applicable state law and the full evidentiary context still matter.

Hypothetical business example

Hypothetical: In ordinary dealings with a supplier, a partner confirms details of a delivery received by the firm. The communication is preserved as potentially relevant evidence, while the firm separately checks the surrounding records and disputed issues.

Practical decision flow

Record who made the statement, when, to whom and in what business setting.

Determine whether it concerns firm affairs and falls within the ordinary course of business.

Preserve the complete communication and supporting records, and separate evidentiary effect from authority to settle a claim or admit litigation liability.

• India Code: central Partnership Act, section 23

Check the applicable state law

This guide explains the central Section 23 baseline. State amendments, notifications and rules can affect its application. Confirm the law applicable to the firm's location and the relevant partnership agreement before acting.

Practical checklist

Glossary

Admission

A relevant acknowledgement whose effect depends on the statutory and evidentiary setting.

Ordinary course of business

The business context required for the statement to fall within Section 23.

Frequently asked questions