Partnership deed arbitration
syed niaz ahmed shah
(Querist) 05 October 2012
This query is : Resolved
The basic partnership deed which was formed in 1972 among two people as major and 4 people as minors, and later in 1982 modified among to all 6 partners as majors.
The partnership among various clauses have arbitration clause in case of disputes. and also that in case of dissolution the assets and goodwill will go to party 1 , while to others capital and profit accrued will go all as per the percentage of shares to other partners.
The firm got dissolved when party 1 deceased. The firm in 1972 partnership deed was not registered while the 1982 is registered in income tax and not under S 69 of partnership act
The firm has lot liabilities and assets which includes tax and bank liability.
the query is does the partnership deed and its terms cease to act and the other partners once are not ready to reconstitute the partnership, how they will resolve their dispute as the clause of Arbitration in the deed is being considered cannot be acted upon since the firm is dissolved.
The other query is that as the assets and goodwill were to go to party 1 and as the party 1 is deceased and the deed is silent on that , and since the firm is dissolved and how to resolve the dispute on the assets, goodwill and liabilities. Party 1 is the mother of the other 5 partners(children)
Another query is that one of the partners is threatening to sue despite the firm is not registered with registrar of firms for claim of properties which were used by he firm (but the title deeds are not n the name of firm or any agreement that the properties are partnership properties or any funds have come out from the firm) and while other partners believe that no partner can sue another partner if the firm is not registered. and they believe as the partner is not agreeing for arbitration , the partners ask the court to intervene and ask for the arbitration.
Can court help in appointing for the arbitration and stop all the proceedings if any partner sues another partner.
Prithvi Raj Sikka
(Expert) 12 July 2014
let me know when firm was dissolved to give proper reply.
