Is a Partnership Firm a Body Corporate? A Legal Perspective
Partnership Firm is considered a Body Corporate from a legal standpoint.
What is a Body Corporate?
A Body Corporate refers to a legal entity that is:
Incorporated or registered under a statute, such as a company incorporated under the Companies Act.
Has a separate legal existence distinct from its members.
Can own property, sue, and be sued in its own name.
Examples: Companies, corporations, cooperative societies, statutory corporations.
What is a Partnership Firm?
A Partnership Firm is:
Formed by an agreement between partners to carry on a business together.
Not registered under a special incorporation statute (although it may be registered under the Indian Partnership Act, 1932, registration is optional).
Does not have a separate legal entity distinct from its partners (except in some jurisdictions like Limited Liability Partnerships—LLPs—which do have separate legal status).
The partners are personally liable for the debts and obligations of the firm.
The firm itself cannot sue or be sued in its own name (in many jurisdictions, the partners sue or are sued individually or collectively).
Legal Position: Is a Partnership Firm a Body Corporate?
No, a Partnership Firm is NOT a Body Corporate.
Because:
It is not incorporated under a statute granting it separate legal personality.
It does not have a distinct legal entity separate from its partners.
It cannot sue or be sued in its own name in many jurisdictions.
It lacks perpetual succession (it dissolves upon change in partners).
Supporting Legal References (India)
The Indian Partnership Act, 1932, governs partnership firms.
Section 2(7) of the Companies Act, 2013 defines "body corporate" and does not include partnership firms.
Courts have repeatedly held that a partnership firm is not a body corporate (e.g., in CIT vs. B.C. Srinivasa Setty, AIR 1966 SC 1757).
Summary
| Aspect | Partnership Firm | Body Corporate |
|---|---|---|
| Incorporation | No (only registration) | Yes, statutory incorporation |
| Separate Legal Entity | No | Yes |
| Ability to Sue/Be Sued | No (generally in partner's name) | Yes, in its own name |
| Liability | Partners are personally liable | Limited liability (in companies) |
| Perpetual Succession | No | Yes |
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