Partnership firm

ketanpopat (Querist) 27 May 2015 This query is : Resolved
Hello Experts,

We are planning to make a partnership firm with 20 partners, each will contribute Rs.50,000. Our firm will engage in trading business.

We have some questions: Can any partner(e.g. partner A) from our firm borrow money independently on behalf of firm? If yes, then lets assume that partner A runs away with that money(considering that he borrowed in cash), then is there any way to protect firm or other partners from that liability?

Please advice, thank you.

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ADV-JEEVAN PATIL, MUMBAI (Expert) 27 May 2015
For Parynership firm loan can be borrowed by all partners. Other partners are not responsible for individual partner loan.

Dr J C Vashista (Expert) 28 May 2015
A hypothetical and vague query.
The firm must engage a lawyer to handle such situation, if happens.

Rajendra K Goyal (Expert) 01 June 2015
Partenership Firm is liable for the act of partner done on behalf of the firm.

T. Kalaiselvan, Advocate (Expert) 03 June 2015
If a partner obtains loan on his personal name, the firm cannot be held responsible, but if it was obtained on behalf of the firm it should reflect in the books of the firm then the firm can be held liable.

malipeddi jaggarao (Expert) 05 June 2015
It is not possible to borrow any money under signature of single partner. All partners should join together to obtain the loan.

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