asim jana (accounts head) 30 May 2013

Query on retirement of a partner

Dear sir,

A, B, C, D, are the partners of paship farm. they started business on 01.04.2011. on 30.04.2013 due to some discripencies and mutual mis-understanding with partner A, all the partners are realised that A is not fit for their business and they want to release the partner A from the business. Partner A is also verbally agreed to retire from the firm and claim his capital as on 31.03.2013. on 02.05.2013 he withdrawn Rs. 15000/- out of his capital a/c. and asking a Deed of Retirement. But now partner A is harass for signature on returement deed. he is un-necessary delaying it.

Please guide me what is the step taken by the other partners for obtaining the signature.

Regards,

Asim Jana

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2 Replies

Hemang (Advocate) 30 May 2013

What are the terms and conditions in the partnership deed for retirement, and or removal of a partner? In the absence of terms and conditions, the querry cannot be resolved in abstract form.

Sonia Dhamija (Advocate) 01 June 2013

Relevant provisions contained in the Partnership Act, 1932, relating to retirement of partner and expulsion of a partner are as under:

32. Retirement of a partner.—(1) A partner may retire—

(a) with a consent of all the other partners,

(b) in accordance with an express agreement by the partners, or

33. Expulsion of a partner.—(1) A partner may not be expelled from a firm by any majority of the partners, save in the exercise in good faith of powers conferred by contract between the partners.

One cannot provide the correct answer to your query unless the relevant contents of the Partnership Deed for your partnership firm are seen. Therefore, please provide the relevant details mentioned in your partnership deed relating to retirement or expulsion of a partner, before your query could be answered properly.