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gaureshpanchal   09 October 2017

Partnership and power of atterney

I want to know whether any partner can appoint and give power of atterney to any third party..??

There are four partners Mr. A, Mr. B, Mr. C  and Mr. D. in the firm ABCD. They have prepared partnership deed too.

Now Mr. D without any reason want to appoint Mr. X as the power atternry holder on his behalf and wants to create disturbances in the firm's business through Mr. X. 

Now question is whether Mr. D alone has any right to appoint and give power of atterney to Mr. X....or else in doing so there must be a consent of all other partners and with the authority of other partners Mr. D can do so ...???? 

Please note that other parnters do not wish to have any disturbance from outsiders in the business....then what is the solution for this...? Can other partner seeks and put a legal stay on such action of Mr. D....? 

Please enlight the query as eary as possible 

 

 



Learning

 1 Replies

manoj   09 October 2017

Coming to your query Partnership firm is not a Legal Entity. It should be represented by its partners then it is a legal entity. As per INDIAN PARTNERSHIP ACT 1932, there must be a provision to give the power of attorney to stranger by continuing partner. there is no provision in parntership act to appoint any agent on behalf of the partner. If there is a recital in the parntership deed that any partner can appoint an agent on behalf of the continuning partner to look after their affairs, then the continuing partner is having right to appoint the agent on behalf of him. When there is no clause in the partnership the Partnership will bind on Indian Partnership Act 1932. So the partnership firm can take action against the partner who is appointing the agent on behalf of the partner of the firm.

 

MANOJ

advocate

8686159292


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