sale of property by a registered partnership firm.
Querist :
Anonymous
(Querist) 13 March 2011
This query is : Resolved
Partnership act 1932 states that, a registered partnership firm can hold property in its name for the purpose of business. Does this mean that the partners can not sell property held in the name of firm unless creditors are settled. or by process of winding up. Bearing in mind that 1. No stamp duty is to be paid for transfer of property in firms name to name of its partners.
2. Creditors are for purpose of business.
3. If partners can directly sell property held in the name of the firm, without knowledge or notice to creditors than creditors will be easily defrauded.
