Termination of rent agreement- partnership firm

hrishikesh (Querist) 10 February 2016 This query is : Resolved
A Partnership firm constituted in 1975 with following share holding ratio PArtner A- 20% partner B- 20% partner C- 20% partner D-20% partner E - 20% While consequenty the partnership deed was amended in 1990 with only the shareholding pattern was changed as follows. partner A- 5% partner B- 20% partner C- 20% partner D 20% partner E- 20% Partner A& B have entered into a rent agreement for 5 years with a third party without consent of the other 3 partners in 2011. Partners C, D & E have done legal case in the city civil for termination of agreement and filed chamber Summons in sessions court bombay for payable rent which got rejected as in main suit only pray was for termination of agreement and not creating third party , So thereafter they have filed an AO in high court bombay which is pending to be called for but it is been almost 5 years that theyhave not been paid their share of rent while partners A&B are taking there shares of rents ie.20% each. In the court they are just getting dates and the party is enjoying thier premises by just paying the rent to the 2 partners in their respective ratio. Partners have got statasco order from court but the status quo order was only it seems they will not create third party which even they have giben in writing and has become absolute . But the contention is that the partners A & B may renew the rent agreement which is due shortly. without other partners i.e C, b & E concurrence. Please advice how shall other partners can stop THE RENEWAL OF AGREEMENT AND RECOVER their rent.

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rajagopal.s (Expert) 10 February 2016
Hi
If the rent agreement is in the name of partnership firm then the managing partner can enter in to rent agreements if so stipulated in partnership agreement. Normally in bombay high court appeals are not pending for so long (5 years) unless and until there is some thing amiss . check with your lawyer what is the problem.

H.M.Patnaik (Expert) 10 February 2016
First of all the shareholding pattern as stated by you as per the amended P.Deed is not correct.

What about the ownership of the tenanted premises? Does it belong to the firm in question or stand in the name of any body else ? If the title stands in the name of the firm, only the partners authorised in the Deed can execute the same. So, please clarify on above points for better appreciation of underlying facts.