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Mohammed Rizwan Shaikh (AM)     23 October 2021

Standing of the unregistered partnership firm

Respected Experts,

A firm "A" existing since 1948 entered into a Partnership firm "B". The Partnership deed was sent for registration. In the meantime the proprietor of firm A who was a partner of firm B expired. The legal heirs of the deceased partner filed RTI with ROF to know the status wherein they were informed that firm B is NOT registered, one of the partners is deceased and the objections were not complied. 

After the death of the partner, the widow/wife had sent a letter to include her as a partner by the virtue of the clause in the Partnership Deed. The partners of firm "B" vehemently denied accepting her as a partner. Now the legal heirs of the deceased partner, have changed the display board and reinstated the firm "A". The deceased partner's wife is also the co-landlord of the building. It is pertinent that no agreement was executed by and between the co-landlords and the partners of firm B. The partners of firm "B" are now harassing the deceased partner's wife to remove the display board of the reinstated firm "A".  

What is the legal standing of firm "B", can the partners approach the Court as the firm is unregistered and take action against the deceased partner's wife?

What legal remedies are available with the deceased partner's wife to safeguard the business of firm A?

Since the installation of the board of firm "A" several complaints were filed against the partners of firm B. The Police is not registering the complaint and not inclined to take action.

Regards,

Mohammed Rizwan

 



Learning

 3 Replies

G.L.N. Prasad (Retired employee.)     23 October 2021

Registration of the firm is not mandatory.  Contact a local advocate for doing needful.  The shock is how the issue came up for litigation after 70 years, and evidence available and legal enforceability of such claim at this point of time.

Mohammed Rizwan Shaikh (AM)     23 October 2021

Many thanks for your reply Sir,

In 2018 the deceased proprietor entered into a partnership. Litigation started in 2020 after the death of the partner. Agreed that registration of the firm is not mandatory but what is the standing of the unregistered firm.

P. Venu (Advocate)     24 October 2021

The posting suggest disputed questions of fact; only a civil court can resolve. No police complaint lies in the given facts.


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