Sections 9 explained: this guide covers what it means, who it applies to, the step-by-step process, documents required, fees, due dates and penalties in India — so you can stay compliant with confidence and avoid costly mistakes.
Section 9 lists the basic duties every partner owes the firm and the other partners: to carry on the business to the greatest common advantage, to be just and faithful, and to render true accounts and full information. Section 10 adds that a partner must indemnify the firm for any loss caused to it by his fraud in the conduct of the firm's business.
Under section 9, partners must carry on the business of the firm to the greatest common advantage, be just and faithful to each other, and render true accounts and full information of all things affecting the firm to any partner or his legal representative. Under section 10, every partner shall indemnify the firm for any loss caused to it by his fraud in the conduct of the firm's business. Neither section opens with "subject to contract between the partners", so the text does not give the partners a stated power to contract out of them.
Section 9: general duties of partners
Section 9 is one sentence with four duties.
| Duty | Wording in the text | What it means in plain terms |
|---|---|---|
| 1 | Carry on the business of the firm to the greatest common advantage | Run the business for the benefit of the firm as a whole, not for one partner's gain |
| 2 | Be just to each other | Deal fairly with the other partners |
| 3 | Be faithful to each other | Act honestly and keep the trust placed in you |
| 4 | Render true accounts and full information of all things affecting the firm to any partner or his legal representative | Keep honest books and share what affects the firm |
Who is owed the duty of accounts and information?
The text says "to any partner or his legal representative". Two points stand out:
- Any partner can ask, including a partner who takes no part in day-to-day work. The section does not exclude partners with a smaller share or a less active role.
- His legal representative can also ask. If a partner has died, the person who legally represents his interests may require true accounts and full information.
"All things affecting the firm" is wide. The text does not list items, so the practical reading is that anything which affects the firm's position, such as sales, debts, major contracts or disputes, falls within the duty.
Example. Dev and Esha are partners in a printing press. Esha handles the office and Dev works on the shop floor. Esha learns that a large customer has stopped paying and does not tell Dev for three months. Section 9's duty of full information is aimed at exactly this kind of silence.
Our topical guide on the duties of partners gives a broader overview; this article stays with the words of the section.
Can the deed change section 9?
Many sections in this part of the Act begin "subject to contract between the partners". Section 9 does not. Its text contains no such opening and no express power to vary it. A deed can add detail, such as how often accounts must be shared, or in what form, but it should not be drafted on the assumption that the basic duties can be switched off. Where a deed is ambiguous, check the official text and take advice.
If you are setting the working rules for a firm, our partnership deed drafting service can put practical account-keeping and information clauses into the deed alongside these statutory duties.
Section 10: duty to indemnify for loss caused by fraud
Section 10 is also a single sentence: every partner shall indemnify the firm for any loss caused to it by his fraud in the conduct of the business of the firm.
| Element | What the text says |
|---|---|
| Who | Every partner |
| Owed to | The firm |
| Trigger | Loss caused to the firm by that partner's fraud |
| Setting | In the conduct of the business of the firm |
| Obligation | To indemnify, which means to make good the loss |
Points to note:
- Fraud only. Section 10 speaks of loss caused by fraud. A partner's wilful neglect is dealt with in a different provision; see section 13, clause (f).
- The firm is the claimant. The indemnity runs to the firm, not to a particular partner. The text does not set out how the amount is recovered or the order in which the partners proceed; it simply states the duty.
- No stated limit. The section sets no cap, time limit or amount. The text is silent on these.
- Third parties. What a third party can claim from the firm for a partner's wrongful act is a separate matter, covered in sections 25–27. Section 10 deals with the partner's duty to the firm.
Example. Farid, a partner in a trading firm, issues false purchase bills and pockets Rs 2 lakh. The firm suffers a loss of Rs 2 lakh because of his fraud in conducting the firm's business. Section 10 makes Farid bound to indemnify the firm for that loss.
Practical points
- Keep proper books. The duty to render true accounts is easier to meet, and to prove, when records are kept regularly and shared.
- Share information in writing. For matters affecting the firm, an email or a minute is useful evidence that information was given.
- Sleeping partners. The duty of accounts and information is owed to "any partner", which on the wording of the section includes partners who are not active in the business.
- Controls against fraud. The deed can set out approval limits and dual signatures for payments, which help the firm detect problems early.
- Dealing with rights and powers. The next sections cover how rights and duties can be fixed by contract; see section 11.
Need help setting up duties in your deed?
Statutory duties set the floor, but a good deed explains how accounts are shared and who approves what. Our team can help you build those controls into your partnership deed so they match how your firm actually works.
Key takeaways
- Section 9 imposes four duties: greatest common advantage, being just, being faithful, and true accounts with full information.
- True accounts and full information are owed to any partner or his legal representative.
- Section 9 carries no "subject to contract" opening in the text.
- Section 10 makes every partner indemnify the firm for loss caused by his fraud in the conduct of the business.
- The text sets no cap or time limit on the indemnity.
Read next
- Sections 7 and 8: partnership at will and particular partnership
- Section 11: rights and duties fixed by contract between partners
- Duties of partners under the Partnership Act
- Rights of partners under the Partnership Act
Disclaimer: Based on the text of the Indian Partnership Act, 1932 as consulted on 1 October 2026. Several States have amended the registration chapter and make their own rules, forms and fees for the Registrar of Firms. This article is general information, not legal advice; check the official text and your State's rules before acting.