Retirement of partner share in fixed assets of the firm


Dear Sirs, Immovable property measuring about 9 Acres of land are bought by Person A, in the name of his Partnership firm in 1997 in Bangalore. They run a business of Hatcheirs and Poultry from in the said land. The firm had purchased many immovable properties incuding the said properties. The partnership consists of 6 Partners, whcih includes he, his Son and grand son, apart from 3 others. Person A, along with his son, and G.son retires from the firm by filing a Retirement Deed, which is not registered in the year 2009 and take away 9 Acres of property, as their share. Thereafter, they execute a Confirmation Deed, in the year 2012 along with other partners, confirming that they have retired from the P'ship firm and as their share they have taken away the said properties and have not paid the stamp duty for the value of properties they have taking away. (for that matter value of the property is not at mentioned in the Deed). Now the following questions have arisen, 1. Does the transfer of property to retiring partners is Valid ? 2. The present market value of the properity of the retirng partners are worth 10 Crores 3. Is it necessary to execute a Deed of Transfer showing the value of property and remit the appropriate stamp duty to make the retiring partners as ABSOLUTE OWNERS ? 4. Does the retiring partners have the valid right and title over the property as of now ? 5. What remedial course of action is required to make the retired partners as Absolute Owners (obviously without paying stamp duty !) thanking you Nagesh
 
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subregistrar/supdt.(retired)

Ji, when did A establish the partnership Firm? And is it a proprietory Firm at the time of opening? Did A purchase the property of AC. 9.00 from his own fund or Firm fund?

 
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It not clear as to when the Partnership had begun. But in the 7 Sale Deeds, Person A has bought the properties measuirng about 9 Acres, as a Partner represeting the Partnership. 

It is not mentioned whether the properties are  purchased out of his own funds (i.e.Self-acqired).

 
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subregistrar/supdt.(retired)

Ji, still there is no clarity. How many partners in the firm? Is it registered?  As a parnter he bought the properties so the same are in the name of Firm and all partners have rights over the properties according to their shares.

 
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There were 6 partners at the time of purchasing the subject land.

Partnership was registered. ( as represented in the sale Deeds).

In the sale Deed, Person A is represnting the Firm as Partner and had got the property registered.

My question is Did the retiring partners who had on retirment,  taken the properties as their share with the consent of other partners as recorded in Confirmation Deed, have the legl rights over the property ?

They have obtained Khatha and are remitting taxes to the Office of Grama Panchyathi.

and by not quoting the value of the property, in the confirmation deed, have they evaded Stamp Duty ?

regards,

Nagesh

 

 
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