Property
Swapnil
(Querist) 04 February 2014
This query is : Resolved
We brothers have a joint industrial property. I met with an accident 4 years ago, since that time my brother has formed a new firm in the same premises and taken over the entire business.
How can I demand for compensation. business is worth 8cr and property is worth 2cr. Profit per annum is around 1.2cr and last 4 yrs I have not recieved any remunaration.
Is there any provision to demand rent of my choice as the company is formed witout my concent.
Please reply fast
ajay sethi
(Expert) 04 February 2014
contact a local lawyer . issue legal notice to your brother for partition of industrial property . if he fails to do file suit for partition .
as far as business is concerned was it partnership firm or run as company ? if it was a registered partnership firm you can ask for accounts .
Swapnil
(Querist) 04 February 2014
It was a registered partnership firm. The firm is not even dissolved. But he created a new firm in his son`s name. Working with same customers with whom we are associated since past decade.
What can I do
Swapnil
(Querist) 04 February 2014
Please let me knoq what to do
ajay sethi
(Expert) 04 February 2014
. Right of Access to Accounts
Subject to contract between the partners, every partner has a right to have access to and inspect and copy any of the books of the firm.
4. Right to Share in Profit
In the absence of any agreement, the partners are entitled to share equally in the profits earned and are liable to contribute equally to the losses sustained by the firm.
. Right to Retire
A partner has a right to retire (a) with the consent of all other partners, or (b) in accordance with an express agreement between the partners, or (c) where the partnership is at will, by giving notice to all the other partners of his intention to retire.
you can also seek dissolution of firm if accounts are not furnished and you are not given share in profits
ajay sethi
(Expert) 04 February 2014
if partnership agreement contains an arbitration clause you can invoke the same . read your partnership deed . contact a local lawyer
Rajendra K Goyal
(Expert) 04 February 2014
Well advised by the expert ajay sethi ji, agree to it.
Guest
(Expert) 04 February 2014
Compensation on what basis when the firm amd property are jointly owned? You are entitled only to the share of profit, if your brother intends to show.
Probably, you may be a great loser if you do not take steps immediately. As per my apprehensopn your registered firm would definitely be showing loss and by now through some manipulations, your brother must have transferred or would be continuing to transfer the assets by and by with liabilities likely likely to be created for your joint firm.
Better personally contact some expert on business law to get your form' documents examined and for advice on course of action to be taken by you to avoid any undue loss to you.
Swapnil
(Querist) 04 February 2014
But my brother has opened a new firm on his son`s name and operating from our premises
M V Gupta
(Expert) 05 February 2014
Mere fact that ur brother has started a new Firm does not deprive u of ur rights with regard to the old firm in which u are a partner. Follow the course of action suggest ted by the Experts above. GEt a Lawyer's notice issued demanding disclosure of the books of accounts and for accounting of profits etc.of ur Firm.
M V Gupta
(Expert) 05 February 2014
Mere fact that ur brother had started a new Firm does not deprive ur rights in the old Firm. Follow the course of action suggested by the Experts above without further loss of time.
Swapnil
(Querist) 05 February 2014
But the firm is not in my brothers name it is a proprietership firm in his sons name and using all the machineries and vehicles which belonged to our company.
Guest
(Expert) 05 February 2014
You should check the accounts of your partnership firm and better dissolve the partnership, otherwise you can expect any negative effect to your property where element of dishonesty takes place.
ajay sethi
(Expert) 05 February 2014
what is nature of agreement between company and proprietor concern . if company machinery is being used company would be entitled for rentals .
Swapnil
(Querist) 05 February 2014
The partnership firm is not working since I met with an accident. The proprietership firm owned by my brothers son was not know to me. That is the reason there is no such agreement between us. How can I demans rental? Is there any provision for that? If yes than who decides the rental?
ajay sethi
(Expert) 05 February 2014
ok . in such a case ask for basis wherein company machinery is being used by proprietor y concern . company should get rentals wherein its machinery is being used at market rates . contact a local lawyer .we have advised you at length
Swapnil
(Querist) 05 February 2014
And rentals for property being used by the propreiter without the concent of the company?
R.V.RAO
(Expert) 05 February 2014
go by partnership deed.
demand dissolution and sharing of assets and liabilities from date you were unable to handle firm's business.
free legal aid societies are available.
but if you can afford give lawyer notice for dissolution of firm , from the date you left business, and demand your share in profits,assets and liabilities.
T. Kalaiselvan, Advocate
(Expert) 06 February 2014
Very properly advised by all the experts, you may follow the advise by immediately contacting the local lawyer and take further steps.
Swapnil
(Querist) 02 June 2017
Am I entitled to demand rent for property and equipment used without my consent
