Partner’s Property Becomes Firm’s Asset Once Contributed: Supreme Court

The Supreme Court ruled that once a partner brings personal property into a partnership, it ceases to be their individual asset and becomes firm property under Section 14 of the Indian Partnership Act, 1932.

After the partner’s death or retirement, neither the partner nor their heirs can claim ownership, except for their share in the firm's profit.

The bench upheld an Allahabad High Court order in a dispute over Hotel Alka Raje, Faizabad. 

Citing Addanki Narayanappa v. Bhaskara Krishnappa (1966), it reaffirmed that property contributed to a firm loses its separate identity and belongs to the partnership permanently.