Section 13 in The Jammu and Kashmir State Partnership Act, 1996
13. Mutual rights and liabilities.
- Subject to contract between the partners;(a)a partner is not entitled to receive remuneration for taking part in the conduct of the business:(b)the partners are entitled to share equally in the profits earned, and shall contribute equally to the losses sustained by the firm:(c)where a partner is entitled to interest on the capital subscribed by him such interest shall be payable only out of profits:(d)a partner making, for the purposes of the business, any payment or advance beyond the amount of capital he has agreed to subscribe, is entitled to interest thereon at the rale of six percent per annum:(e)the firm shall indemnify a partner in respect of payment made and liabilities incurred by him-(i)in the ordinary and proper conduct of the business, and(ii)in doing such act in an emergency for the purpose of protecting the firm from loss, as would be done by a person of ordinary prudence in his own case, under similar circumstances: and(f)a partner shall indemnify the firm for any loss caused to it by his wilful neglect in the conduct of the business of the firm.
