Partnership Act, 1932 — section 51

51. Return of premium on premature dissolution..—Where a partner has paid a premium on entering into partnership for a fixed term, and the firm is dissolved before the expiration of that term otherwise than by the death of a partner, he shall be entitled to repayment of the premium or of such part thereof as may be reasonable, regard being had to the terms upon which he became a partner and to the length of time during which he was a partner, unless‑

(a)the dissolution is mainly due to his own misconduct, or

(b)the dissolution is in pursuance of an agreement containing no provision for the return of the premium or any part of it. UNDER PROOF READING 52. Rights where partnership contract is rescinded for fraud or misrepresentation.—Where a contract creating partnership is rescinded on the ground of the fraud or misrepresentation of any of the parties thereto, the party entitled to rescind is, without prejudice to any other right, entitled

(a)to a lien on, or a right of retention of, the surplus or the assets of the firm remaining after the debts of the firm have been paid, for any sum paid by him for the purchase of a share in the firm and for any capital contributed by him ;

(b)to rank as a creditor of the firm in respect of any payment made by him towards the debts of the firm ; and

(c)to be indemnified by the partner or partners guilty of the fraud or misrepresentation against all the debts of the firm.