Immovable land exchanged by governmnet for partnership firm business

Abhinav (Querist) 31 October 2013 This query is : Resolved
Hello Experts.

Q1 : Consider a scenario where a land is bought and entire expense is shown in the balance sheet as capital from two partners ?
To whom does the land belong to Partners or firm ?

Q2: Assuming the answer to above question is that the land belongs to partner and not to firm , If one of the above partner says now that they both had expressed their desire to put this land in firm as their capital investment. So now to whom does this land belong to ?

Q3: If one of the partner above is deceased, cannot the statement of second partner implicitly means that the deceased partner also meant the same.

I read section 14 that -
"Whether it is acquired for the purpose and in the course of the business of the firm."

My take : Firstly, Yes it was, infact entire land, building cost was calculated and divided equally and shown as capital of the two initial partners.

Secondly, The entire land was taken by government and we got it back as governmnet was convinced that the land "is solely being used to produce high quality engineered equipments which is saving lot of Foreign Exchange of the country". Infact this time they allowed another partner in the firm as the owner of the land as as per act one partner could not hold some X% of land for doing business. So we had to add one more partner to save the land. So now the new balance sheet shows name of 3 partners ,the land and other things as earlier is shown as depreciation in assets section.

"Such a property would become partnership property only if there is an agreement, express or implied that the property.."
If one of the original partner is saying that they both had agreed to give this land in firm as capital then does it not make sense to say that by all means land belongs to firm and not exclusively by partners ? How much value does the mutation papers hold, which still shows land is in the name of 2 partners

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