Saara Realcon 26 July 2024

Partition of single property of partnership firm

Kindly advice.

A sizeable portion of a land was purchased in a Partnership Firm which has 3 Equal partners.

The land was given for Development to a Builder and completed 6 Flats were agreed to be given to The Partnership Firm.

The 3 Partners have agreed lately that Land should have been purchased individually by each partner and then development agreement should have been done as Flats would have been allotted fairly in Each Individual's name.

What options do Individuals have to get Flats separately allotted?

Can the Partnership Firm be dissolved and Land gets partitioned in Separate Individual Deeds? The firm has only this land on Asset side.

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T. Kalaiselvan, Advocate (Advocate) 27 July 2024

Section 39 of the Indian Partnership Act 1932 states that the dissolution of partnership firm among all the partners of the partnership firm is the Dissolution of the Partnership Firm. The dissolution of partnership firm ceases the existence of the organization.

After this, the partnership firm cannot enter into any transaction with anybody. It can only sell the assets to realize the amount, pay the liabilities of the firm and discharge the claims of the partners.

When a partnership or a corporation winds up its operations, it has to liquidate and distribute its assets to the owners or shareholders. The partnership or corporation must assemble its assets, settle with creditors and debtors, and distribute its remaining assets among the owners or shareholders.