Hi,
A partnership firm ''XYZ'' with partners A (20%), B(20%) and C (60%) formed in 1981 in MUMBAI, where its acknowledged at registrar of firms, there is stamp from Registrar of firms on a 2 rupees stamp paper where it lists the details of the partners.
In the deed, a clause regarding demise of any of the partners points out that "on Death, Retirement or Insolvency of any partner the remaining partners shall carry on the partnership business as usual."
In 1986 after the demise of C. 'A & B decided to put on paper the terms and conditions agreed upon by them on Reconstitution of this Partnership. A(60%) & B (40%).' This Deed was not registered nor registrar of firms was informed.
In 2007, B passed away.
According to the 1986 unregistered, reconstituted partnership deed (between A & B)
"Death, Retirement or insolvency of any partner shall not dissolve the partnership as to the other partners.
In the event of the death of any of the partners the heirs of the deceased partners shall jointly and severally be partners of the firm thereafter to the extent of the share of the deceased partner in the profits and losses, if any, as well as in the assets of the firm. Such heirs shall be treated as partners in their own right, from the date of the demise of the deceased partner. In case the heirs of the deceased partner do not wish to join as partner they shall inform their decision to the other partners within 1(one) month of the death of the deceased partner.
In such case the heirs of the deceased partners shall be paid share of the deceased partner after making an account of the partnership on the date of death of the deceased partner as stated her in above."
My questions are.
1) In the light of above, Does the partnership firm continues to exist as partnership firm and carry on business normal, given the fact that the document executed in 1986 wasn't registered nor intimated to the registrar of firms.
2) In 2011, A wants to sell Property 'F' owned by the firm 'XYZ' in Mumbai. Does A have the right / entitled to sell the property of the firm? Can he Sign the Agreement for Sale and register as a Partner of the Firm.
Let me also mention A (husband) and B (Wife) while C was the father of A.
3) What precautions/papers would a buyer of the property need so it can be transferred to the new buyer easily.
