This section replaces with amendments section 345 (8) of the Companies Act, 1963, under which all partners, both limited and general, have to be adjudicated bankrupt before the assets of the partnership can vest in the official assignee.
Section 37 applies the provisions of the Bill to limited partnerships as if they were ordinary partnerships and on the adjudication of all the general partners the assets of the limited partnership will vest in the official assignee. Under section 345 (8) of the Companies Act all partners, both limited and general, have to be adjudicated before the assets of the partnership vest in the official assignee.
The committee could see no reason why in the event of only the general partners being adjudicated the assets of a limited partnership should not be made available for the benefit of creditors of the partnership. Accordingly, they recommended the enactment of section 37.
Under the section general partners may be adjudicated bankrupt and there-upon the assets of the limited partnership will vest in the official assignee. The point of distinction arises by virtue of the fact that the general partners' private estate may be taken by the creditors of the firm, whereas the private estates of the limited partners may not.
