Legality of the firm
kavksatyanarayana
(Querist) 01 August 2018
This query is : Resolved
My friends entered into Partnership business and registered the Firm before the Registrar of Firms as Friends Developers. They invested their immovable properties as capital. They obtained layout approval from the Vuda Authorities in the name of Firm. And after obtaining approval, the Managing Partner of the Firm sold some plots. Some of the buyers applied for loan from Bank for construction. The Legal Advisor objected that the Firm has no right to sell the plots as the Firm has no document for the property. Now what is the remedy to solve this problem?
Guest
(Expert) 04 October 2018
As per the title of the query, your query relates to the legality of the firm, but it is not understood, how the question of legality of the firm arises, when the description of your query is about the properties of partners taken as capital value of the firm?
Secondly, if you intended to ask for the legality of the sale and mortgage of the said properties, your query lacks in the very basic essentially needed information on several points, like,
- the modus operandi of taking the value of the properties in to account, as capital of the firm;
- whether the properties were legally transferred in the name of the partnership firm or not by paying due stamp duty;
- If not transferred to the name of the firm, how the managing partner could be able to sell the properties in the name of the firm;
- If sold, whether the sale proceeds was taken in to account of the firm or the individual name of the managing partner or the the individual owner partners;
- How the purchaser could become ready to buy the property from the partnership firm, if the property stood in the name of individual partner/s;
- Similarly, in whose name and how the partners of the firm could apply or get the loans, if any they could, on the basis of such properties in the name of the firm; etc., etc.
