Contribution towards share capital from each partner in firm is not mandatory

Venkataraya S Nayak Vs D Vijaygopal Mallya (Karnataka High Court) Karnataka High Court held that it is not necessary for each partner to contribute towards share capital for becoming partner in the partnership firm. Facts- Plaintiff stated that he has been running the business of “Glow Sign Boards and Labels”. The defendant joined the said business as working partner without any investment and a formal partnership deed was entered into between the parties on 01.12.1998. Entire capital of Rs.2,50,000/- has been contributed by the plaintiff and 30% of the profit of the business was agreed to...