Q: What do we mean by partnership not created by status ?

Ans: PARTNERSHIP NOT CREATED BY STATUS. 
In accordance with section 5 of partnership act, 1932, the relation of partnership arises from contract and not from status; and, in particular, the members of a Hindu undivided family carrying on a family business as such, or a Burmese Buddhist husband and wife carrying on business as such are not partners in such business. 

According to section 5 of contract act, 1932, the partnership is not created by status.

The relation of partnership arises:

From Contract; and not from status.

Example 1: 

Members of Hindu undivided family (Joint Family) carrying on a family business together. The family members are not partners of each other because although,  they are carrying business together but the relationship between them has not arisen from Contract but due to their family status according to their religion.

Example 2:

A Burmese Buddhist husband and wife carrying on business together according to their religion. The husband and wife are not partners of each other. 
Although, they are carrying business together but the relationship between them has not arisen from Contract but due to their marital status according to their religion.

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