Debt To Equity Swap Is It Possible In Partnership Firm.

Indian Partnership Act Section 49(4): In the case of partners, the partnership property shall be applicable in the first instance in payment of the partnership debts, and the separate property of each partner shall be applicable in the first instance in payment of his separate debts. Where there is a surplus of the separate property of the partners, it shall be dealt with as part of the partnership property, and where there is a surplus of the partnership property, it shall be dealt with as part of the respective separate property in proportion to the rights and interests of each partner in the partnership property" From the very reading of the provision, it would be quite clear that the partnership property shall be applicable at the first instance in the payment of partnership debts and secondly the separate property of each partner should be applied in the first instance in payments of his separate debts.