Partnership deed & legal heirs on record
Mohammed Rizwan Shaikh
(Querist) 08 February 2017
This query is : Resolved
Dear Experts,
A Partnership firm was formed as per Indian Partnership Act and was registered with ROF, Mumbai. The said firm consisted of 6 partners wherein 2 partners retired and 2 expired. It is important to note that the said changes were not updated with the ROF. Further, out of 2 surviving partners 1 recently got expired and now only one is left. Can a single partner continue the firm as a partner or proprietorship? However, a case was filed by the partner of the firm in the High Court, so now with only 1 partner can the case go on or the legal heir i.e. the widows of the expired partners should be brought on record for the case?
Please advise.
Regards,
Rizwan Shaikh
J K Agrawal
(Expert) 09 February 2017
The partnership comes to an End when any first partner leave of expire. Legal heirs has right in partners share. your case is out of wits. please hire some witty lawyers at Mumbai.
Mohammed Rizwan Shaikh
(Querist) 10 February 2017
Many thanks Agrawal Sir....
I certainly appreciate your reply and value your advice. Sir, the surviving single partner is under assumption that he is 100% partner and does not want to bring the legal heirs of the deceased partners (i.e his elder and younger brother and step-mother). He states that there is no clause in the agreement to bring in the legal heirs of the deceased partners under partnership. Further, when the partners expired, it was not brought on the record of the Registrar of Firms. As I have mentioned earlier that the matter in the High Court which was filed by the partner got dismissed for default and the NM has been filed for the restoration of the matter. My question is if the NM is circulated and brought up for hearing, will that NM be abated and can the court ask get the legal heirs on record. The surviving partner does not want any legal heirs to be on record,
More importantly there are 2 important clause which reads as;
a) Save as stated herein above and in this clause no partner shall be entitled to retire till the joint venture is fully developed and/or disposing off of the land more particularly described in the First and Second schedule here-under written is fully completed, PROVIDED HOWEVER that the death or insolvency of any partner shall not dissolve the partnership but the partner dying or becoming insolvent shall be deemed to have retired from the partnership on and from the date of his death or from the date of his being adjudged insolvent as the case may be. The legal representative of the partner dying or the Assignee or the Receiver as the case may of the partner becoming insolvent shall have only the right which the partner dying or becoming insolvent would have had if he had retired from the firm. The partner dying or becoming insolvent shall cease to be a partner oin the date of the death or on the death of his or her being adjudged insolvent as the case may be.
b) The retiring partner shall be entitled to be paid on the amount that such retiring partner may have contributed to the capital of the firm and nothing further whatsoever at all. The amount payable to such retiring partner shall be paid within one month from the date of the retirement.
Please advice experts
Regards,
Rizwan Shaikh
krishna mohan
(Expert) 09 March 2017
From the details provided there is a mention of JV and its objective. Partnership to survive until then. Also noted that
The retiring partner shall be entitled to be paid on the amount that such retiring partner may have contributed to the capital of the firm and nothing further whatsoever at all. The amount payable to such retiring partner shall be paid within one month from the date of the retirement.
So further details to be provided is whether the JV is in place as mentioned and whether settlement as above has been effected to the retiring partner/on death etc.,
to give a better opinion ..
Mohammed Rizwan Shaikh
(Querist) 09 March 2017
Many thanks Krishna Sir,
The JV was not at all completed due to the dispute between the partners subsequently a Supplemental Agreement was executed thereafter wherein 6 partners were and the terms and conditions still remained the same of JV (above said 2 clauses). Now out of the 6 partners, 2 retired 3 expired, now only 1 partner is surviving. The surviving partner wants the same firm to run as proprietor and update the same in the Court cases as well. Kindly note that the cases were filed by the senior partner. Can the Hon'ble Court ask the firm to bring the legal heirs on record or the respondent can do so? and how?
Regards,
Rizwan Shaikh
Mohammed Rizwan Shaikh
(Querist) 17 March 2017
Sir,
The surviving partner does not want to bring the legal heirs into the partnership. Can the legal heir file an application to come on record? Please advice EXPERTS
Regards,
Rizwan Shaikh
krishna mohan
(Expert) 20 March 2017
Now out of the 6 partners, 2 retired 3 expired, now only 1 partner is surviving. The surviving partner wants the same firm to run as proprietor and update the same in the Court cases as well. Kindly note that the cases were filed by the senior partner. Can the Hon'ble Court ask the firm to bring the legal heirs on record or the respondent can do so? and how?
Matter is sub judice and have hired any counsel to represent you against the case filed by senior partner as above. Your counsel can guide you better by taking total circumstances and it would be prudent not to alter the status of the firm without proper direction of the court
Advocate Ravinder
(Expert) 14 May 2017
On the death of any partner, the partnership dissolves. There is no partnership. Now the only thing is that the existing partner and the legal heirs of expired partner shall go to the court to claim their respective shares.
