Chethana (Accountant) 16 July 2017

Partnership deed fabricated document

Sir, Please request your advice on this issue.

1. A Partnership firm started by 5 members on 01-04-2000 accordingly Partnership Deed made. (Unregistered Firm)
2. 2 Members decides to quit partnership firm.
3. Accordingly 1st-Re-Constitution Deed is made on 1-4-2006 where 2 partners quits and 1 new partner inducted to the firm.
4. On 1-1-2007, 2 more partners decided to quit the firm.
5. Accordingly on 1-1-2007, 2nd-Re-Constitution Deed is made where 2 partners quit firm and another 2 partners inducted as incoming partner. The firm is active and functioning till today.

In one of the tha on-going court case, based on available documents on file, court finds prima-facia that 1st-Re-Constitution Deed made on 1-4-2006 is fabricated and produced as evidence during 2013.

Now the question is, if court found 1st-Re-Constitution Deed is fabricated and makes it null&void, what would be the fate of the 2nd-Re-Constitution Deed that came into effect on 1-1-2007 and it's partners, firm libaility, books of account, profits, etc...

Thanking you.

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2 Replies

Azhagananth (Lawyer) 16 July 2017

Central Government Act

Section 69 in The Indian Partnership Act, 1932

69. Effect of non-registration.—

(1) No suit to enforce a right arising from a contract or conferred by this Act shall be instituted in any court by or on behalf of any person suing as a partner in a firm against the firm or any person alleged to be or to have been a partner in the firm unless the firm is registered and the person suing is or has been shown in the Register of Firms as a partner in the firm.

(2) No suit to enforce a right arising from a contract shall be instituted in any Court by or on behalf of a firm against any third party unless the firm is registered and the persons suing are or have been shown in the Register of Firms as partners in the firm.

Siddharth Srivastava (Advocate) 16 July 2017

It would be first one which would be affected and the would be effective in force. However from your query it is not clear as to how the same was fabricated? What are the reasons? If required consult with details.