Dissolution of a partnership firm on death of other partner
neha
(Querist) 29 May 2015
This query is : Resolved
In a legal partnership of 2 partners, 1 partner died in June,2013. The alive partner made a dissolution deed in the next month, but legal heirs of deceased partner didn't signed the same. Legal heirs also got some nominal amount as standing credit to the deceased partner's capital A/c. Alive partner continued the same business as a proprietory, without giving any heed to legal heirs of deceased.
In this case, what about the share of deceased partner in assets of the firm & his liabilities?
Without any dissolution deed can alive partner continue the business in his own name?
What procedure should legal hairs of deceased partners follow now, for their rights & share in assets of the firm?
kavksatyanarayana
(Expert) 30 May 2015
consult a local lawyer along with copy of partnership deed executed by the alive partner and deceased partner. file case if necessary. solve the issue in an amicable way to get the share of the deceased with the share of assests/liabilities.
neha
(Querist) 01 June 2015
Thankyou sir for your suggestion!
Rajendra K Goyal
(Expert) 02 June 2015
If no amicable solution possible, ask for settlement of the accounts as on date of death of partner through a legal notice along with overdue interest on funds. Consult local lawyer.
neha
(Querist) 03 June 2015
Thank you sir for your reply!
I think that not only for accounts until the death of the partner, but the legal heirs may also claim for the share in the firm till the present date with interest. Because the assets are not yet distributed & the alive partner is running the business using these assets.
T. Kalaiselvan, Advocate
(Expert) 10 June 2015
The deceased partner had a share in the firm, naturally his legal heirs have rights to inherit them, so if the amicable talks do not work out, a legal notice followed by a recovery suit in the civil court can give a solution to this.
