Rights where partnership contract is rescinded for fraud or misrepresentation (Section 52):
Where a contract creating partnership is rescinded on the ground of fraud or misrepresentation of any of the parties thereto, the party entitled to rescind is entitled;
(1) to a lien on the surplus or the assets of the firm remaining after the debts of the firm have been paid, for any sum paid by him for the purchase of a share in the firm and for any capital contributed by him ;
(2) to rank as a creditor of the firm in respect of any payment made by him towards the debts of the firm; and
(3) to an indemnity from the partners guilty of fraud or misrepresentation against all the debts of the firm.
(1) to a lien on the surplus or the assets of the firm remaining after the debts of the firm have been paid, for any sum paid by him for the purchase of a share in the firm and for any capital contributed by him ;
(2) to rank as a creditor of the firm in respect of any payment made by him towards the debts of the firm; and
(3) to an indemnity from the partners guilty of fraud or misrepresentation against all the debts of the firm.
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