Section 41Part 5 — Dissolution of Partnership and Its Consequences
Rights where partnership dissolved for fraud or misrepresentation
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41. Where a partnership contract is rescinded on the ground of the fraud or misrepresentation of one of the parties thereto, the party entitled to rescind, is, without prejudice to any other right, entitled —
to a lien on, or right of retention of, the surplus of the partnership assets after satisfying the partnership liabilities, for any sum of money paid by that partner for the purchase of a share in the partnership and for any capital contributed by that partner;
to stand in the place of the creditors of the firm for any payments made by that partner in respect of the partnership liabilities; and
to be indemnified by the person guilty of the fraud or making the representation against all the debts and liabilities of the firm. Partnership Act (2025 Revision) Section 42 c Revised as at 1st January, 2025 Page 19