Urgent reply experts
RAJESH CHOUDHARY
(Querist) 28 November 2011
This query is : Resolved
Hai friends, is it compulsory to issue dissolution deed when partnership deed UNREGISTERED? if so what is the procedure. i also applied pan card so cancel of pancard is possible? suggest me soon possible......
M V Gupta
(Expert) 29 November 2011
Sec. 40 of the Partnership ACt, 1932 provides-" A Firm may be dissolved with the Consent of all the Partners or in accordance with the contract between the parties." If the partnership deed contains any provision then the Firm will be dissolved in accordance with those provisions. Ex: Pertnership at will. This will be dissolved by resignation of any of the partners.If the deed does not contain any provision then it can be dissolved only with the consent of all the partners. The consent should be evidenced by a written agreemnt. In any event it is always necessary that that a deed of dissolution is entered into as it is necessary to record the settlement of accounts between the partners and distrbution of assets of firm and obligations to discharge the debts and liabilitites of theFirm etc. This is so whether thr the Firm is regd or not.
RAJESH CHOUDHARY
(Querist) 01 December 2011
Thanks sir for ur kind reply. let me know the partnership is signed on 13th june 2011 and does not carry any business and no assets in the firm. just formal agreement made between the parties and apply for pan card and received it. so now the dissolution deed is necessary?
M V Gupta
(Expert) 01 December 2011
If you do not record dissolution in writing the deed of partnership continues to exist along with the PAN card issued by the IT Department. So if you and your partners want to disconintue better to record dissolution of the Firm and then apply for cancellation of the PAN card. Not doing so may lead to unnecessary complications.
