Retiring from partnership firm
rachna gupta
(Querist) 08 February 2013
This query is : Resolved
i want to have a query regarding partnership firm.one of my relatives is having a hospital which is in partnership.there are 4 partners.it is made on the land alloted by government on lease.one of the partner has gone abroad for last 10 years,without withdrawing from partnership and not taking part in running hospital.his name stands as such in deed.if supposingly this case goes to the court what may be the stand of court, regarding share of this partner.whether he is entitled for only his capital account or a share in assets(land,building,machineries etc) also.what are the consequences if this partner do not withdraw himself from partnership.
Anirudh
(Expert) 08 February 2013
The answer to your query would mainly depend upon the terms and conditions of the partnership. Without knowing the contents of the same, any answer that would be given here would be of lease use to you. Therefore, you would be advised to contact a local lawyer and take his views.
ajay sethi
(Expert) 08 February 2013
agree with anirudh
R.K Nanda
(Expert) 08 February 2013
contact local lawyer.
C. P. CHUGH
(Expert) 08 February 2013
Standard Terms of Partnership entitles a partner who is retiring to receive any amount standing to his credit as Capital including accrued profits and share in Goodwill of the continued business, but that again would depend upon the Terms and Conditions originally agreed as per Instrument of Partnership. Just refer to that and decide to what extent he is entitled to.
rachna gupta
(Querist) 09 February 2013
sir,
I feel that what mr chugh has explained may be correct.
as this deed do not mention any duration, it is "partnership at will",no clause for expulsion,no clause for retirement.hence what i feel that for retirement or withdrawl from firm,same rules should come into picture as that of winding up of firm,or dissolution of firm as in any standard partnership law include..but i am not clear that what is included in capital ,whether it include only capital invested plus interest plus whatever profit is added to it yearly, AS the capital share do not grow like the rate of property(in which investment was done)and shown in different heads of "fixed assets"and to it each yr.construction plus machine etc are added, plus goodwill off course.
