Multiple choice

A registered firm cannot claim a set off exceeding the __________ in a proceeding instituted against the firm or any partner thereof.

  1. Rs. 1000/-

  2. Rs. 100/-

  3. Rs. 500/-

  4. Rs. 10,000/-
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Under the Indian Partnership Act, a registered firm cannot claim a set off exceeding Rs. 100/- in any legal proceeding against the firm or its partners. This is a specific statutory limitation on the right of set off for registered firms. Options A, C, and D suggest incorrect amounts - Rs. 1000/-, Rs. 500/-, and Rs. 10,000/- respectively - which are not the limits prescribed by law.

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