Reg property dispute
Karan
(Querist) 16 March 2012
This query is : Resolved
History:My grandfather had bought a property under his name in 1980's.He started a small partnership firm with 6 partners.Sadly due to loss making the firm had to shut in 1993.From then it is locked to date.The last partnership deed was executed in 1991 after which 3 partners have expired including my Grandfather.Our liabilities towards Corporation Tax has to settled.All but one Partner Mr.X 's (whose Late Father was a partner)settled their liabilities.Mr.X is ignorant to pay his debts.In spite of the Corporation serving him notice(which he did not take) he has not come forward to settle dues.On approaching him he has told the Corporation Authorities that his father was a partner of the firm and not him. Now the Corporation has given out an Auction Notice.All other partners on our part have taken out Demand Drafts for paying the Corporation Tax on the notice date itself.
Can anyone please advise me on how to go about and what action can be taken for the same.
Thanks a lot in advance.
Raj Kumar Makkad
(Expert) 16 March 2012
If corporation has issued auction notice then the last resort is only to negotiate with the corporation and deposit with it settled amount prior to the date of of auction otherwise auction is imminent. The morgagee corporation has nothing to do with the relationship of the partners.
Karan
(Querist) 16 March 2012
Hello Mr.Makkad
Thanks for your response.I can understand that the Corporation has nothing to do with the relationship of partners. I wanted to know as to what legal action be taken against the partner who has failed/not willing to pay the dues?
Thanks in Advance.
Adv.R.P.Chugh
(Expert) 16 March 2012
Since he was not the partner himself his liability is not direct, he is liable to pay the tax, only out of proceeds of property he recieved from his father, and not lawfully disposed off.
Karan
(Querist) 16 March 2012
Dear Mr.Chugh
Thanks for your response.I agree to your views sir, but the other partners cannot bear the burden of one partner.Is there a way where he will be legally be obliged to pay the dues.Also the partner had paid the dues last year so will he not be obliged to pay this year too ?
Thanks
