Partner’s authority in an emergency
⚖️ Partner’s Authority in an Emergency
1. Legal Basis
Governed by Section 19(2) of the Indian Partnership Act, 1932.
Every partner is an agent of the firm, and in cases of emergency, a partner may act without consulting other partners to protect the firm’s interests.
2. Principle
A partner can bind the firm by doing all acts necessary for the protection of the firm’s business or property in situations of urgency or emergency, even if such acts are outside the ordinary course of business, provided the act is reasonable and bona fide.
Key Elements:
Emergency situation – immediate action required to prevent loss.
Bona fide intention – act must be for the benefit of the firm.
Reasonableness – act must be necessary and not excessive.
3. Illustrations
A partner hires a fire engine to save the firm’s warehouse from fire without consulting other partners → firm bound to reimburse.
Partner pays urgent debts to prevent attachment of firm property → firm liable for payment.
Partner arranges immediate repairs to machinery damaged suddenly → firm liable for expenses.
4. Limitations
Acts must be necessary for the firm’s interest.
Acts done purely for the partner’s personal benefit do not bind the firm.
Reckless or excessive acts are not binding.
5. Case Laws
K. Shanmugham Chetty v. A. Raman & Co. (1947)
Partner acted to protect firm property → firm liable to reimburse.
Gian Singh & Co. v. Union Bank (1953)
Emergency act by partner to safeguard firm assets → firm held bound.
S.P. Jain v. M. Krishnamurthy (1964)
Partner exceeded ordinary authority but acted bona fide for firm’s interest → firm liable.
6. Summary Table – Partner’s Authority in Emergency
| Aspect | Explanation | Illustration / Case Law |
|---|---|---|
| Legal Basis | Section 19(2), Indian Partnership Act, 1932 | – |
| Principle | Partner can act without consent to protect firm in emergency | – |
| Conditions | Emergency, bona fide, reasonable | – |
| Examples | Firefighting, urgent repairs, paying urgent debts | K. Shanmugham Chetty, Gian Singh & Co. |
| Limitations | Acts must benefit firm; not reckless; not for personal gain | S.P. Jain v. M. Krishnamurthy |
✅ In short:
A partner can take urgent action to protect the firm in emergencies, even outside ordinary business, and the firm is bound if the act is reasonable and bona fide.
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