Chapter IV - Relations of Partners to Third Parties
Section 25
Section 25: Liability of a partner for acts of the firm
Partners have joint and several liability for acts of the firm done while they are partners.
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Need advice on Section 25?
This article is for general information. Refer to the Indian Partnership Act, 1932 official text for the official provisions. If you need professional advice for your situation, contact Bizeneed.
Statutory text
Bare law
Every partner is liable, jointly with all the other partners and also severally, for all acts of the firm done while he is a partner.
Introduction
Section 25 makes every partner jointly and severally liable for acts of the firm done while that person is a partner.
The timing of the act and whether it is an act of the firm are central to the analysis.
Key takeaways
Joint and several
A qualifying firm act can expose each current partner to liability.
Timing
The act must have been done while the person was a partner.
Liability checklist
Identify the act and evidence that it is attributable to the firm.
Confirm the dates when each person joined or left the partnership.
Read Sections 18–22 for agency and authority where the act was done by one partner.
Illustration
If the firm incurs a supplier obligation while three persons are partners, Section 25 may make each liable for that firm act, subject to the full facts.
Check deed and state law
Check the partnership deed, dated partner-status records and any applicable state amendment before assessing a person’s liability for a firm act.
Practical checklist
Do
- Keep dated admission, retirement and firm transaction records.
- Review authority before large commitments.
Avoid
- Do not assume a private division of responsibilities alone eliminates statutory third-party liability.
Frequently asked questions
Can a claimant proceed against one partner?
Section 25 states several as well as joint liability for qualifying firm acts.
Does the rule cover acts after a person ceased to be a partner?
This section concerns acts of the firm done while the person is a partner; other provisions may require separate review.
Need help applying this provision to your situation?
Contact BizeneedLast updated 10 October 2026