Validity of a partnership deed
P M Somani
(Querist) 19 August 2014
This query is : Resolved
There was executed a partnership deed on dated 29.9.1998 on stamp paper dated 14.8.1998 ( i.e date of stamp paper is after the date of execution) of Rs. 100/- and the deed was get done notarised on date 25.4.2000, (i.e. notarised after approx. 20 months of execution). The partnership is not registered with the registerar of firms.
The firm is doing no business. Please, tell me, what is validity of the partnership deed.
ABDUL RAZIQUE
(Expert) 19 August 2014
dear author U want to know the validity of partnership deed. first u describe that the stamp paper was bought in whose name,
Secondly as per limitation if the stamp paper does not use within six month, stamp paper lost validity.
In the matter of registration it is must that stamp paper is not more than three month.
for more information kindly read over below lines:
Indian Paernership Act section 69 says:
69. Effect of non- registration.
(1) No suit to enforce a right arising from a contract or conferred by this Act shall be instituted in any Court by or on behalf of any person suing as a partner in a firm against the firm or any person
alleged to be or to have been a partner in the firm unless the firm is registered and the person suing is or has been shown in the Register of Firms as a partner in the firm.
(2) No suit to enforce a right arising from a contract shall be instituted in any Court by or on behalf of a firm against any third party unless the firm is registered and the persons suing are or have been shown in the Register of Firms as partners in the firm.
(3) The provisions of sub- sections (1) and (2) shall apply also to claim of set- off or other proceeding to enforce a right arising from contract, but shall not affect-
(a) the enforcement of any right to sue for the dissolution of a firm or for accounts of a dissolved firm, or any right or power to realise the property of a dissolved firm, or
(b) the powers of an official assignee, receiver or Court under the Presidency- towns Insolvency Act, 1909 , (2 of 1909 ). or the Provincial Insolvency Act, 1920 , (5 of 1920 ). to realise the property of an insolvent partner.
(4) This section shall not apply-
(a) to firms or to partners in firms which have no place of business in 1[ the territories to which this Act extends], or whose places of business in 2[ the said territories] are situated in areas to which, by notification under 3[ section 56], this Chapter does not apply, or
(b) to any suit or claim of set- off not exceeding one hundred rupees in value which, in the Presidency- towns, is not of a kind specified in section 19 of the Presidency Small Cause Courts Act, 1882 , (15 of 1882 ). or, outside the Presidency- towns, is not of a kind specified in the Second Schedule to the Provincial Small Cause Courts Act, 1887 , (9 of 1887 ). or to any proceeding in execution or other proceeding incidental to or arising from any such suit or claim.
malipeddi jaggarao
(Expert) 20 August 2014
When the business is not commenced, why do you bother about the validity of partnership deed. Partnership deed is an agreement which can be even oral. It need not be registered.
Rajendra K Goyal
(Expert) 20 August 2014
The partnership would be treated as unregistered firm.
V R SHROFF
(Expert) 20 August 2014
Partnership is valid..
ajay sethi
(Expert) 20 August 2014
appears to be imaginary query
ADV-JEEVAN PATIL, MUMBAI
(Expert) 21 August 2014
Partnership not regd will have no legal partnership. However dissolve p firm mutually since no business conducted from its incorporation
T. Kalaiselvan, Advocate
(Expert) 24 August 2014
I agree with the opinions of experts Mr. Barman and Mr. Ajay Sethi that the query appears to be an imaginary query of academic interest.
