Mohan and Shyam are partners in a firm. Which statement among the below can be claimed valid if the Partnership Agreement is silent regarding the same.

When the Partnership Deed is silent on specific matters, the provisions of the Indian Partnership Act, 1932 apply. Let me examine each option:

Option 1 - Partner's Salary:

As per Section 13 of the Partnership Act, no partner is entitled to remuneration or salary for participating in the business conduct. Mohan's claim is invalid.

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Option 2 - Interest on Loan:

When a partner advances a loan to the firm beyond their capital contribution, they are entitled to interest @ 6% per annum (as per the Partnership Act). Shyam is claiming 10%, which exceeds the statutory rate. His claim is invalid.

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Option 3 - Profit Sharing Ratio:

According to Section 13 of the Partnership Act, profits and losses must be shared equally among all partners when the deed is silent, regardless of capital contributions.

Capital contributions: Mohan = ₹20,000 and Shyam = ₹50,000

Despite unequal capital, the profit sharing ratio = 1:1

Mohan's claim for equal share is valid as it aligns with the legal provision.

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Option 4 - Interest on Capital:

The Partnership Act states that no interest shall be allowed on capital when the deed is silent. Partners are only entitled to interest on capital if specifically agreed upon in the partnership deed. Shyam's claim is invalid.

The only valid claim is Option 3, where equal profit sharing is a statutory right under the Partnership Act when the agreement is silent.