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Chapter V - Incoming and Outgoing Partners

Section 33

Section 33: Expulsion of a partner

Section 33 restricts majority expulsion of a partner and applies selected retirement rules to a validly expelled partner.

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Need advice on Section 33?

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.

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Statutory text

Bare law

(1) A partner may not be expelled from a firm by any majority of the partners, save in the exercise in good faith of powers conferred by contract between the partners.

(2) The provisions of sub-sections (2), (3) and (4) of section 32 shall apply to an expelled partner as if he were a retired partner.

Central rule and applicability

A majority cannot expel a partner except through a good-faith exercise of powers conferred by the partnership contract. Both the contractual power and good faith matter. Subsections (2), (3) and (4) of Section 32 then apply to an expelled partner as though retired, covering the identified discharge and notice issues.

Limits and related provisions

A majority vote alone does not satisfy the section. The existence of an expulsion clause also does not remove the good-faith requirement. This provision does not itself give a universal expulsion procedure or settle every dispute over its use; the deed, facts, relevant law and remedies require review.

Hypothetical business example

Hypothetical: A majority wishes to remove another partner after a disagreement. Before implementing a resolution, the firm checks whether the deed grants the power and whether its proposed exercise is in good faith, then considers the continuing-liability and notice rules.

Practical decision flow

Locate the contractual expulsion power and its conditions rather than relying only on a majority headcount.

Record the facts and process relevant to good faith and the deed's requirements.

Assess the incorporated Section 32 discharge and public-notice rules and applicable state record changes.

Check the applicable state law

This guide explains the central Section 33 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

Do

  • Locate the contractual expulsion power and its conditions rather than relying only on a majority headcount.
  • Record the facts and process relevant to good faith and the deed's requirements.
  • Assess the incorporated Section 32 discharge and public-notice rules and applicable state record changes.

Avoid

  • A majority vote alone does not satisfy the section. The existence of an expulsion clause also does not remove the good-faith requirement. This provision does not itself give a universal expulsion procedure or settle every dispute over its use; the deed, facts, relevant law and remedies require review.

Glossary

Contractual power
An expulsion power conferred by agreement between the partners.
Good faith
An express condition on exercising the contractual expulsion power.

Frequently asked questions

Can a majority expel any partner whenever it wishes?

No. Contractual power exercised in good faith is required by the exception.

Does a deed clause alone settle validity?

No. The good-faith condition and relevant facts still matter.

Which retirement rules carry across?

Section 32 subsections (2), (3) and (4), as expressly incorporated.

Need help applying this provision to your situation?

Contact Bizeneed

Last updated 10 October 2026