Multiple choice

The test of good faith as provided under Section 33(1) of the Indian Partnership Act, 1932 requires the following

  1. that the expulsion must be in the interest of the partnership

  2. that the partner to be expelled is served with a notice

  3. that he is given an opportunity of being heard

  4. all of the above
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D Correct answer
Explanation

Section 33(1) of the Indian Partnership Act, 1932 allows expulsion of a partner only if it is done in good faith. Good faith under this section requires: (1) The expulsion must be in the partnership's interest, and (2) the expelled partner must be given notice and opportunity to be heard. The Act thus requires all the substantive and procedural safeguards listed.

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