Partnership registration remains valid where adult partners later accept the operative terms despite an earlier defective deed involving a minor.

A partnership firm may be treated as validly constituted for registration purposes even where an earlier deed was defective because a minor was shown as a partner, if the later operative arrangement was assented to by the adult partners and supported by the relevant registration application. Where the initial term had expired and the continuing firm consisted only of majors, the adult partner's later written acceptance of the firm's terms, rights, obligations, benefits and liabilities cured the practical defect for the relevant assessment years. Personal signatures of every partner on the original instrument were not essential if the partnership was otherwise put forward and accepted for registration.

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Issues: Whether the respondent-firm was entitled to registration under section 26A of the Income-tax Act, 1922 on the basis of the renewed partnership arrangement after the erstwhile minor had attained majority.

Analysis: The original partnership deed had been defective because a minor was shown as a full-fledged partner. However, the initial partnership had run its course and, on continuation after expiry of the term, all three persons were majors. For the assessment year 1955-56, the continuation was supported by the original deed as endorsed on 7 November 1953, and the erstwhile minor had assented to the arrangement by joining in the application for registration. For the assessment year 1956-57, the later document dated 24 February 1955 showed an adult partner expressly accepting and confirming all the terms, rights, obligations, benefits and liabilities of the firm. The Court held that it was not necessary that every partner must personally sign the instrument if the partnership was assented to and put forward for registration, and that a major could validly accept partnership obligations afresh notwithstanding the earlier defect.

Conclusion: The firm was validly constituted for the relevant accounting years and was entitled to registration under section 26A of the Income-tax Act, 1922.

Ratio Decidendi: A partnership firm is registrable when, notwithstanding an earlier defective deed involving a minor as a partner, the later operative arrangement is assented to by all adult partners and constitutes a valid partnership for the relevant accounting year.

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