Partnership deed
Guest
(Querist) 19 February 2013
This query is : Resolved
How can a partnership deed be changed when there is no such clause of removing one partner?
My jiju is doing adultary and divorce case is going on between my sister and jiju.They have a partnership farn registerd in my didi's name.My didi want's to remove my jiju from the farm..What is the procedure?
Can she return him his investments and remove?
If all other partners agree than can she remove?
Please suggest.
Devajyoti Barman
(Expert) 19 February 2013
Your sister can file suit for dissolution of partnership and for accounts.
Raj Kumar Makkad
(Expert) 23 February 2013
Partnership can be got dissolved by either of the partners and full and final accounts can be got closed accordingly.
prabhakar singh
(Expert) 23 February 2013
Q."What is the procedure?
Can she return him his investments and remove?
If all other partners agree than can she remove?
Please suggest."
Answer:From query it appears there are more than two partners in the firm.
Under section 32 of the Partnership act,a partner may retire on his own with consent of all partners or as agreed about in the partnership agreement or where partnership is AT WILL in the deed by giving notice to other partners.See agreement and ask your jiju for a cool exit.
Otherwise a partner, as laid in section 33,can not be expelled from a firm by any majority of the partners, unless the agreement of partnership provides so; or when there is a case of charge on your jiju having acted against the interest of the partnership.
However in either case ,retirement or expulsion,your jiju shall have a right of full and fare final accounting and accordingly to give to or take from the firm.
And in either case of fore going event,his rights and liabilities shall be governed for future as provided in subsection (2)to (4)of section 32 of the partnership Act.
If the partnership is registered with registrar of partnership firm then intimation of change in constitution of the firm must also be filed with him.
The DISSOLUTION of firm takes place only when all (each and every one )agrees to DISSOLVE the firm ,or in the mode and form provided in the agreement.There may occasions as laid in section 41 where compulsory dissolution would take place,that is to say when all partners go insolvent or the business go as illegal.
The DISSOLUTION of a firm may also take place,by efflux of time or on completion of a business for which the firm was constituted or on death or on adjudication as an insolvent of a partner.It may take place simply by notice in case in the agreement ,the FIRM is AT WILL.
Then there is procedure for dissolution by court also.
You can see now it is not easy by such a query to decide the prescription in your case.Because if one believes facts of query correct,one can advise of his unanimous expulsion by remaining partners under the color of acting in good faith for the interest of the firm as due to the on going litigation between your jiji and jiju,your jiju is expected to harm the interest of the partnership provided other partners belong to the family or of your jiji or near and dear to her.
So it would be best for your jiji to visit a commercial law practitioner along with agreement of partnership,if any,to decide what course of action would be better to take.
