Indian Partnership Act, 1932
52. Rights where partnership contract is rescinded for fraud or misrepresentation
Where a contract creating partnership is rescinded on the ground of the fraud or misrepresentation of any of the parties thereto the party entitled to rescind is, without prejudice to any other right,
- to a lien on, or a right of retention of, the surplus or the assets of the firm remaining after the debts of the firm have been paid, for any sum paid by him for the purchase of a share in the firm and for any capital contributed to him;
- to rank as a creditor of the firm in respect of any payment made by him towards the debts of the firm; and
- to be indemnified by the partner or partners guilty of the fraud or misrepresentation against all the debts of the firm.