When a person takes his family property in the partnership business, whether he wil have to execute a deed in favour of Partnership Firm?
sunaina (Lawyer) 29 June 2009
When a person takes his family property in the partnership business, whether he wil have to execute a deed in favour of Partnership Firm?
Swami Sadashiva Brahmendra Sar (Nil) 29 June 2009
Yes. It is better to execute a deed.
A V Vishal (Advocate) 29 June 2009
Sunaina,
Your query is not clear, kindly clarify what do you mean by taking the property, is the property being purchased, leased or taken as stock. Further clarify what do you mean by family property and the mode of its acquisition.
sunaina (Lawyer) 29 June 2009
Hi Vishal,
Taking Property means using the property for firm may be as stock and 'family property' means his own property not ancestral. Further, i would like to get clarified on death of such partner, whether his son step into shoes of his father as partner because his father has invested property in firm.
A V Vishal (Advocate) 29 June 2009
Dear Sunaina
If the person treats it as stock, then the value of the property can be said to be his investment and he has to relinquish his rights over the property in favour of the firm. In case of his death, his heirs get the share of the deceased partner and cannot step into the shoes of their father as a partner.
sunaina (Lawyer) 30 June 2009
Thank U Vishal
Khaleel Ahmed Mohammed (Advocate ) 05 July 2009
Yes deed of partner ship must be executed.