Partnership firm
dharven
(Querist) 10 March 2013
This query is : Resolved
if there are three partners in partnership firm and two partners who have 80 % holding in firm and they wish to complete debt of the firm by sell partnership property without third partner for prevent of securisaziton act from bank so, they both partner can do it?can majority partners sell property without minority partner when partnership firm is NPA from bank and bank get symbolic possetion of the property?
R.K Nanda
(Expert) 10 March 2013
state full facts.
Advocate M.Bhadra
(Expert) 10 March 2013
To answer this query it is needed to read the Partnership Agreement,however note the following:
Partnership is the result of agreement. In partnership, there is a mixture of profits and losses. A partner is the agent of other partners. A partner is not entitled to transfer his interest to a third person so as to substitute him in his place. A partner has no right to get a partition of the partnership property in special, but only after the dissolution of the partnership he can have it sold. Also a partner has more extensive remedies against his co-partners. It is defined in section 4, Indian Partnership Act as follows:
“Partnership is the relation between persons who have agreed to share the profits of a business carried on by all or any of them acting for all”.
It is a creation of contract between the parties; and the rights and liabilities of the parties to a partnership are enforceable by and against them individually. In a partnership of banking business there cannot be more than 10 partners while in any other kind of business there cannot be more than twenty. The liability of partners is unlimited and is not limited only to the extent of their share in partnership property. The individual partners of a firm have a right to take part in the management of the business of the firm. A partner can sue his fellow partner if he is excluded from the business. In partnership, subject to a contract between the partners, a partner cannot transfer his share and impose an undesirable person as the head of other partners. Each partner is the agent of the firm and binds the firm by all his acts done on behalf of and within the scope of the business of the firm. The death of a partner on the assignment of his interest dissolves the partnership. In the case of partnership the members can be sued individually and also in the name of the partnership firm.
The expression ‘partnership’ as also the expressions ‘firm’ and ‘partner’ have the same meaning under the income-tax law as is assigned to them under the Partnership Act, except to this extent that ‘partner’ shall also include any person who, being a minor, has been admitted to the benefits of partnership.
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prabhakar singh
(Expert) 10 March 2013
A partner is principal for himself and agent for others.There is no question of majority or minority decision.All depends on the deed of partnership wherein, if provided, even one partner can sale the property of firm.All partners are expected to act in the best interest of the firm,so if sale is the beneficial and in the interest of the firm,the same can be made even if few are opposed to.
Raj Kumar Makkad
(Expert) 11 March 2013
Nothing to add more in the given replies.
