Applicability of Section 37 of Partnership Act
Achal Agrawal
(Querist) 07 July 2016
This query is : Resolved
My father & grandfather were 2 partners in Partnership firm which got dissolved due to death of my father in 2008. My grandfather without settling accounts transferred the affairs of dissolved firm to me along with all assets & liabilities & also executed an affidavit in this regard. Out of legal heirs of my father, my grandmother executed an unregistered release deed in my favour releasing her share from entire estate of my father also mentioning his share in the partnership business. Also all legal heirs executed a GPA in my favour. I formed a new proprietorship in my name keeping same name as of the old partnership firm which got dissolved. After six years from dissolution my grandmother has filed a partition suit for her share in assets of dissolved partnership & profits in my current proprietorship. My defense is based on the release deed which is valid even if unregistered because share of a partner in partnership is a movable asset even if partnership consists of immovable assets (Addakani Narayanappa, Supreme Court) & Artilcle 5 of limitation act which bars suit for accounts & share in dissolved partnership after 3 years. My question here is that whether the Section 37 of Partnership Act would be applicable to my case or not. Please note that I was never a partner in the erstwhile partnership firm which got dissolved & other legal heirs of my father are in my favour & not claiming any share.
adv.bharat @ PUNE
(Expert) 23 July 2016
37 not applied in your case. since unregistered released deed not have any value before law.
