Tenancy rights of retiring partner
abhay pethe
(Querist) 26 December 2017
This query is : Resolved
Partnership firm buys tenancy property in name of firm. After 25/ 30 years one partner wishes to retire.The tenancy property value does not appear on balance sheet of firm. Can the retiring partner claim his share of tenancy at the current increased value or is he entitled to only his capital appearing in books of account of the firm, which does not correctly represent the true value of the tenancy.
Ms.Usha Kapoor
(Expert) 27 December 2017
The tenancy value should be distributed among the partners in accordance with the 6he capital invested by the partners.So the retiring partner should be given his rights to tenancy [property in accordance with his share of contribution to the tenancy which is of increased value currently.
Dr J C Vashista
(Expert) 27 December 2017
A property on rent changes its character after transfer of title in favour of purchaser, therefore, it has to be accounted for as an "asset" of the company and the retiring partner is entitled to his/her share as per Memorandum of Association.
krishna mohan
(Expert) 27 December 2017
Since teneancy right has monetary value to be taken into account to arrive at current market price and retiring partner to be discharged by returning all his dues.
Ms.Usha Kapoor
(Expert) 27 December 2017
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Sankaranarayanan
(Expert) 27 December 2017
yes I do stand with learned friends suggestion
Kumar Doab
(Expert) 27 December 2017
You can benefit from the advice's posted for you.
Ms.Usha Kapoor
(Expert) 09 July 2018
I stick to my above view and Kumar Doab's view.
