Proprietor firm
Gopal Ranjan Panigrahi
(Querist) 19 January 2012
This query is : Resolved
Sir, if a single Proprietor of a firm dies and thereafter the firm is taken over by another Proprietor who having changed the Firm Name then to whom shall the amount /who will have the right claim over the amount in name of Predecessor firm :
A) legal hiers of deceased Proprietor or
B)Predecssor Firm or
C)Subsequent Proprietor or
D)Subsequent Firm
Please submit with reasoning and act/law as applicable . Thanks
Devajyoti Barman
(Expert) 19 January 2012
Only the legal heirs of the proprietor since deceased in entitled to get the amount due to their predecessor in interest.
The new proprietor can get only if there is agreement with him by the legal heirs of the deceased proprietor in that regard while transferring the Trade name along with the business including its rights and liabilities.
Raj Kumar Makkad
(Expert) 19 January 2012
a) Yes.
b). no
c). no.
d). no.
The character of proprietorship firm is of an individual business so the profits and gains go his legal heirs in case of his demise.
Advocate. Arunagiri
(Expert) 19 January 2012
The legal heirs, after the demise of their father, would have entered the sale agreement with the new business man.
It is upto the legal heirs sell any portion of the firm.
