Date of execution of partnership
Maya Arora
(Querist) 18 March 2009
This query is : Resolved
One of my client is having partnership business. It is basically family business having father, his son and his grandson and grandaughter as partners. The father died on 11th March,2009 devolving his share to his son through a will.Now the remaining partners want to reconstitute the firm. Stamp duty can be paid only today and the maximum amount according to delhi stamp act is Rs.5000/-. Is it required first to file dissolution of parnership on Rs.200/- stamp papers. Secondly what will be the date of new partnership agreement as the stamp papers are available of today itself.
A V Vishal
(Expert) 18 March 2009
Dear Maya:
Let us consider your question in 2 parts:
Part 1: Dissolution of Partnership is not required.
Part 2: The partnership is a continuing legal entity hence a supplemental deed can be drawn reconstituting the Partnership with the new profit sharing ratios. However proper care should be taken to explain the circumstance under which the supplemental deed is being drawn up in the preamble of the deed.
Maya Arora
(Querist) 18 March 2009
Mr. Vishal thanks for your reply. As far as part 1 is concerned, I am agree with it, but for part 2 I think partnership act doesn't talk about supplimentary deed. If a partner die and partnership is at will, then the firm should be reconstituted and a fresh deed sould be drawn. Moreover my query is still there.
1. What should be the amount of stamp paper, according to Delhi stamp act.
2.What should be the date of reconstitution, whether it should the date of death, but we don,t have backdated stamp papers or it should be the date when stamp duty is paid.
A V Vishal
(Expert) 18 March 2009
Supplementary deed is an addendum to the original deed, there is absolutely no problem drawing for and as far as the reconstitution is concerned the deceased partner is left out and the erstwhile business continues with the new profit sharing ratio.
The date of reconstitution will be from the date of the death of the partner. However the firm need not be having stamp paper of that date since the preamble of the reconstitution deed reads out that the reconstitution was necessitated because of the death of the partner and that the date of reconstitution shall be from the date of the death.
As far as the stamp paper is concerned please contact any local lawyer at Delhi to know the amount of stamp paper required
Maya Arora
(Querist) 19 March 2009
Mr. Vishal thanks again for clarifying.
Hiralal Das
(Expert) 04 April 2009
I agree with the opinions of my learned members friend. You may follow them.
