Om Parkash and Som Parkash commenced …

To settle the dispute and distribute the profits according to the provisions of the Partnership Act, we need to consider the following claims and provisions: Om Parkash's Claims: 1. Interest on capital and on loan @10% p.a. 2. Profit sharing in the capital ratio. Som Parkash's Claims: 1. Profit sharing in equal ratio. Additional Claim (No Partnership Deed): 1. Salary for Om Parkash's illness period. 2. Interest on capital and on loan @6% p.a. Let's address each claim: 1. **Interest on capital and on loan @10% p.a. (Om Parkash's claim):** According to the Partnership Act, partners are entitled to interest on capital only if there is an agreement to that effect. Since there is no agreement, interest on capital should not be allowed. However, interest on loan can be allowed as it is a liability of the firm. 2. **Profit sharing in the capital ratio (Om Parkash's claim):** In the absence of a partnership agreement, profit sharing is done in the ratio of the capital contributed by each partner. Therefore, the profit should be shared in the ratio of 20,000 : 15,000, which is 4:3 between Om Parkash and Som Parkash respectively. 3. **Profit sharing in equal ratio (Som Parkash's claim):** Since there is no partnership agreement, and profit sharing is based on the capital ratio, Som Parkash's claim for equal profit sharing cannot be entertained. 4. **Salary for Om Parkash's illness period (No Partnership Deed):** Partners are not entitled to salary unless there is a specific provision in the partnership agreement. Therefore, the claim for salary cannot be entertained. 5. **Interest on capital and on loan should be given only @6% p.a. (No Partnership Deed):** Since there is no partnership agreement, interest on capital and loan should be given at the rate specified in the Indian Partnership Act, which is 6% p.a. Based on the above analysis, the profits should be distributed as follows: - Total profit: Rs. 28,300 - Om Parkash's share (4/7): Rs. 16,100 - Som Parkash's share (3/7): Rs. 12,200 Om Parkash will not be entitled to interest on capital but will receive interest on the loan @6% p.a. Som Parkash will receive his share of profit without any additional claims. This distribution is fair and in accordance with the provisions of the Partnership Act, considering the absence of a partnership agreement.