Mengkuang Layar Handicrafts & Co (ML) is a firm that carries on the business of making and producing hand crafts from mengkuang leaves or pandanus atrocarpus since 2015. Nazri, Najib and Gan are the partners of ML. The business of ML has been badly impacted due to the decrease of demands of MLs products during the Covid-19 pandemic. Thus, ML is having a plan of dissolving its business. Advise all the partners in respect of the following matters:

1.Lim Ghee claims that he is a partner to ML. Hence, he is entitled to all the profits of ML and its distribution in case of dissolution of ML. Lim Ghee argues that he has been receiving profits from ML since 2015. ML however denies Lim Ghees claim as such periodical payment has only been made for the supply of materials namely the mengkuang leaves to ML.

2.A creditor (X) has been claiming payment of debt amounting to RM10,000.00 from ML. The loan had been made in 2017 for the purpose of MLs business by Najib. X recently found out that ML also has another partner that is Ravi. X is now claiming the RM10,000.00 from all the four partners. Ravi denies liability as he is only a dormant partner