History of Dharmashastra (Ancient and Mediaeval Religious and Civil Law in India) v4.c63.729
History of Dharmaśāstra (Ancient and Mediaeval Religious and Civil Law in India) v4.c63.729
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Where traders or others (like actors, musicians or artisans) carry on a business jointly it is termed a partnership (Nār. VI. 1 and Kāt. 624).⁸⁰² Bṛ. (SBE vol. 33 p. 336 verses 1–2) says that a man should carry on a joint business with other persons of good family, that are clever, active, intelligent (or educated), familiar with coins, skilled in (controlling) expenditure and income, honest and valiant (or enterprising) and that joint undertakings like trade should not be carried on by prudent men with persons (partners) who are weak or lazy or afflicted with disease or are unlucky or destitute (of money).⁸⁰³ The meaning is not that all the above qualities must exist in all partners, but that according to the nature of the undertaking some of these qualities will be absolutely necessary. Nār. VI. 2–3, Yāj. II. 259, Bṛ. (SBE vol. 33 pp. 336-337 verses 3 and 4) prescribe that the expenses, loss, profit or work of those who jointly lend gold, grain or liquids shall be according to the capital put in by each.⁸⁰⁴ The duty of each is to act honestly towards the others, whether they are present or absent, in sales or purchases of various commodities.⁸⁰⁵ Bṛ. (SBE vol. 33 p. 337 verses 5-7) provides that whatever⁸⁰⁶ property one partner may give (or transfer), being authorised to do so by the rest, or whatever document (or transaction) he may cause to be executed, all that is to be deemed as done by all partners;
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the partners themselves are declared to be the judges (the deciding persons) or witnesses among themselves in a doubtful case and in case of fraud, provided they are not already at feud among themselves. It follows from this that by entering into an agreement of partnership, each partner agrees that he submits to the decision of the other partners in cases of doubt. If any one from them is found out to have practised fraud on the others in sales or purchases he should clear himself by special oaths or ordeals. Yāj. II. 260, Nār. VI. 5,⁸⁰⁷ Bṛ. (SBE vol. 33 p. 337 verse 9) provide that each partner is responsible to make good what has been lost through his negligence or in consequence of his acting against the instructions of the others or of his acting without their authority or consent. If any one of the partners saves partnership property from act of God or the king or thieves (or similar calamity) by his own exertions he is to be awarded (as his special share) one tenth of the property saved (Yāj. II. 260, Kāt. 631,⁸⁰⁸ Nār. VI. 6). If any partner is crooked or fraudulent the rest may expel him without giving him any profit; a partner who is incompetent to work (personally) should get the partnership business done through another (Yāj. II. 265). Yāj. II. 264 and Nār. VI. 7 and 17-18 state that if one partner goes to a foreign country and dies, his share should be taken by his heirs (son &c.) or by his agnates or cognates;
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in default of these the other partners may take it and in default of them the king may take it after waiting for ten years to see whether any heir or claimant turns up. Kātyāyana⁸⁰⁹ states that in the case of artisans who together carry out some work, those among them who are directors of new methods get four shares, those who are adepts in the craft three shares, those who have studied the craft two shares and the apprentices only one share. Whatever is given to strangers by all together (i. e. by the partnership firm) should be claimed back by the firm as such; any single partner should not claim it; if he does so he will lose his share of the profit⁸¹⁰. Some rules are prescribed by Bṛ. that among dancers, singers and musicians, the singers get equal shares; while those who beat the tune only get half share each; similarly in the joint construction of a mansion or a temple the head of the artisans gets two shares. An artisan⁸¹¹ (*śilpin*) is one who manufactures or works upon gold, silver, yarn, wood, stone and hides or one who has mastered one of the (64) arts. If a king has ordered a band of adventurers from among his subjects to make a plundering expedition in enemy country, Bṛ. (in V. R. p. 125) and Kāt. (633-635)⁸¹² prescribe that the king gets one tenth (⅙ acc.
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to Bṛ.), the leader gets four shares in the remainder, the valiant among his followers three shares, the more capable two shares and the rest one each and that if any one of them is caught the money for his ransom should be contributed by all according to their shares. When no agreement is made as to shares in property by traders, husbandmen, thieves and artisans similar rules apply⁸¹³.