Q.State the provisions of the Indian Partnership Act, 1932 that apply in the absence of a partnership deed.

When partners have not put anything in writing, or their deed is silent on a point, the law does not leave the gap unanswered — it supplies a fixed, statutory set of default rules that step in automatically.

These five rules come directly from Sections 13(a)-(d) of the Act and apply exactly and only when the deed is silent on that particular point.

When there is no partnership deed, or the deed is silent on a particular matter, the Indian Partnership Act, 1932 lays down the following default rules, all in force simultaneously wherever they are relevant:

Two distinctions are worth stressing: capital earns no interest by default, but a loan to the firm earns a guaranteed 6% regardless of profit or loss, because a loan is a debt of the firm while capital is a risk-bearing owner's stake; and all five rules apply only in the absence of an agreement on that specific point — the moment a deed addresses a matter, however briefly, the deed's own term overrides the statute.

The most common error is mixing up rules 2 and 4 — students frequently say 'no interest is allowed on capital or loan,' which is wrong: a partner's loan DOES earn 6% p.a. by default, only capital does not. Another frequent mistake is forgetting that loan interest is payable even in a loss year, and treating it like a share of profit that only arises when profits exist — it does not; it is a charge against the firm regardless of the result for the year.