MOHAMED RAFI (Secretary) 26 August 2011

Refusal to provide accounts in partnership firm

I am a partner in a hotel with proper agreement signed.off late the other partners ?(working partners) are denying me the proper accounts of the firm and instead they provide me only a computation sheet with no specific details.Also despite having proper agreement one majority share holder partner tells me that I am not at at all a partner and i have recorded his conversation for proof saying so.He even threatens me with dire consequnce for sending a notice to produce accounts.Also it has come to my notice that he is misusing the room booking sytem to show that he has brought the clients and is also claiming commision on that.

He and other two are paid 15%as mangement fee and they being share holders in the firm also claims profit share.Apart from all these they are misusing by fradulently manipulating booking sytem to claim commsion.

What aremy rights as a non working partner?

Since the firm is in Delhi and Iam in chennai can I lodge a complaint against him in chennai as I had recieved that threatening call from him at chennai?

Do I have to approach court or police?

Please help.Thanks

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3 Replies

SELVARAJ.R (M.COM., LLB) 31 August 2011

Dear Rafi,

InFirst, If your agreement of Partnership is registered one, you have to go through it by the help of Advocate.

Second, you have to get financial statements for last 3 years from the firm with partners account thereto.

Third, you have to decide whether to proceed with complaint or file civil suit?

Better to Consult your Firm Chartered Accountant before your action of threatenings if any

Narender Raj G (Advocate) 28 September 2011

Please issue legal notice to other partners, demanding accounts and state of affairs.

If you have lost faith in partnership, you better withdraw from partnership and demand for return of amounts and profit.

If other partners deny doing so, please file a suit for rendition of accounts. If your partnership agreement contains an arbitration clause, please take steps in accordance with Arbitration and Conciliation Act 1996.

By withdrawing from partnership, also issue a public notice in news paper.