Immovable Property in Partnership Firm
Gaurav Agarwal
(Querist) 06 November 2010
This query is : Resolved
Can a Partner bring in land registered in his name as his contribution to the Partnership?
Can a partner later withdraw such immovable property from Partnership?
R.Ramachandran
(Expert) 06 November 2010
When any property is brought into the partnership, then the same would become the partnership, and individual partner would not be in a position to take it back.
Gaurav Agarwal
(Querist) 06 November 2010
Thanks experts.
How can we bring a immovable property into Partnership firm?
Raj Kumar Makkad
(Expert) 06 November 2010
Such immovable property which is duly registered in the name of proposed partner shall be duly transferred by such partner in favour of partnership firm by either of the legal modes viz. sale or gift and the buyer has to bear registration charges.
Sathyan A.R.
(Expert) 07 November 2010
As per law the firm unlike company is not a legal entity. Hence the property is not registered in the nme of a registered partnership concern. This makes the difference between company and partnership.
The partner however can make an agreemnt with other partners to the effect that the land is tanferred to the partnership firm as a part of his capital contribution ad this factg should be mentioned in partnership deed.
Just on retirement or reliqushment a partner can withdraw his capital he can also withdraw his land from the asset of the firm subject to the contractual liability reliushing.
But having already allowed posession of the land to the firm th partner will not be easily able to take back the land in view of the severability concept of liabilty of the partnership fir.
adv. rajeev ( rajoo )
(Expert) 07 November 2010
If you want to bring the immoveable property in to the partnership firm, you will have to first transfer it in the name of the firm. It becomes the firm's property.
Deekshitulu.V.S.R
(Expert) 07 November 2010
It should be only by a registered instrument. Even withdrawal is only by a registered instrument. Such an act is covered under the definition of the word "Conveyance " under the Stamp ACt.
Parveen Kr. Aggarwal
(Expert) 08 November 2010
Mr. Sathyan is right. A firm is not a separate legal entity and as such, no transfer instrument is required. Only an agreement of partnership (Partnership Deed) would suffice and the property so owned by partner in his name would be treated as property of the firm being contribution of such a partner. Upon dissolution of the firm,the property may be distributed or given to any partner(s) subject to agreement betweent the partners.
Gaurav Agarwal
(Querist) 08 November 2010
Thanks all experts. In a partnership two partners bring in a plot of land registered in their joint name as capital contribution and third partner brings in money. Now one of the two partners who bring in plot of land wishes to take money from partnership and wishes to resign. Two remaining partners wish to develop such piece of land and later sale off Apartments so developed. Can remaining two partners execute sale deed?
M V Gupta
(Expert) 09 November 2010
Yes. The remaining partners can execute the sale deeds. But it will be necessary to execute the deed of reconstitution of the Firm recording the resignation of the outgoing partner and declaring that the remaining partners will carry on the business of the Firm. Hope your partnership firm has been registered with the Registrar of Firms. if not , please do it as otherwise your firm may face some legal problems.
laxmikanth
(Expert) 01 December 2016
Mr.Sathyan, Mr.Parveen Kr.Aggarwal and Mr.M.V.Gupta are rightly said.
Rajendra K Goyal
(Expert) 01 December 2016
Could not assess the necessity to advice / restart this thread after 6 long years.
