Indian Partnership Act, 1932

Return of premium on premature dissolution

51. Where a partner has paid a premium on entering into partnership of 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 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.