Partnership deed valid on execution date supports firm registration, despite an earlier deemed commencement date involving a minor partner.

Registration of a partnership firm depended on whether the deed was a valid instrument when executed. Because both partners were majors on 15-7-1977 and competent to contract, the deed supported registration from that date. A recital deeming the business to have commenced from 1-4-1977 did not invalidate the instrument for the period after execution, and the earlier presence of a minor was material only to the pre-execution period. Authorities cited for the Revenue were distinguished because they involved a minor continuing as a partner or no fresh deed after majority. Registration was available only from the deed date, not for any earlier period.

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Issues: Whether registration of the firm could be granted from the date of the partnership deed when the deed was executed between two majors, even though it stated that the partnership was deemed to have commenced from an earlier date when one partner was a minor.

Analysis: The relevant inquiry was whether the firm was constituted under a valid instrument on the date of execution. On 15-7-1977, both partners were majors and competent to enter into a partnership. The recital that the business was deemed to have commenced from 1-4-1977 did not invalidate the deed for the period beginning with its execution. The authorities relied upon by the Revenue were distinguished on the basis that those cases involved instruments executed when a minor was still a partner or where no fresh deed existed after majority, whereas here the first effective deed itself was executed when both parties were competent to contract. The firm was therefore entitled to registration from the date of the deed and not for the earlier period.

Conclusion: The claim for registration was accepted from 15-7-1977 to 31-3-1978 and rejected for any earlier period.

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