partnership property
anupam sharma
(Querist) 13 August 2010
This query is : Resolved
A family business is running as a partnership firm among father, son and other relatives.In case the firm is dissolved and the property purcahsed out of the partnership funds is to be distributed according to the profit sharing ratio.Can the father, who is not getting along with the son, restrain the property share to go to the son?
Can the son get a stay fo rteh above?
can the other relative partners object to the stay or get the said stay vacated?
A V Vishal
(Expert) 13 August 2010
Point.1: The partnership deed must be referred to conclude on such situation.
Point.2: The father not getting on well with his son cannot restrain the property share.
Point.3: Yes, an injunction can be brought against the partnership from alienation.
Point.4: The other partners can contest the stay petition.
Point.5: It is advisable to invoke the arbitration clause, however there can be deadlock on the matter and the issue may prolong.
Devajyoti Barman
(Expert) 13 August 2010
Yes I agree but unless there is a arbitration clause the party can not pray for referral to the arbitrator suo motu.
R.Ranganathan
(Expert) 15 August 2010
The property purchased out of the partnership funds has to be distributed in the profit sharing ratio only since father and son are partners and the other relationships do not come in this. As one of the partners son is entitled to his share in the property.
B.R. BHALLA, ADVOCATE
(Expert) 15 August 2010
It has to be seen that a dissolution of the firm takes place as provided in sections 39 - 44 (Chapter-VI) of the Indian Partnership Act,1932. Section 48 of the Act provides the scheme of mode of settlement of accounts between the partners including the distribution of assets of the firm. Please look to these provisions and the related case law. This will help you in the matter.
Niikhil C. Shirgaonkar
(Expert) 15 August 2010
No father can not restrain the property. the said Property shall be distributed as per the provision of the Partnership Deed in respect of the same. Son can get injunction if there is threat of the sale of the property. Relationship of the father and son can not override the provisions of the Partnership Act and Deed.
