Partnership

Querist : Anonymous (Querist) 16 June 2020 This query is : Resolved
I had entered into a partnership firm we both had invested 50% each, in addition, he had let his unused land for the business without any rent or interest charged.
profits were equally divided between us,
now at the time of dissolution of the partnership firm, will the land used in the business for 15 years be divided equally?
can I get any share of the land or consideration instead?

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Raj Kumar Makkad (Expert) 16 June 2020
It is vey surprising that your ex.partner didn't charge a single penny from you or the firm for the use of his land for your joint business and at the time of the dissolution of the partnership firm, you even have an evil eye on his land?

If your friend had not transferred the said land in the name of the firm by way of any registered document then he is its exclusive owner and you or the firm has nothing to do with the same.

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Dr J C Vashista (Expert) 17 June 2020
No, you are not entitled to enjoy any share in the land owned by your ex-partner, which was not transferred into the assets of the firm.

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P. Venu (Expert) 17 June 2020
More than the law, some soul searching would provide the right answer. It is morality that makes law effective.

Rajendra K Goyal (Expert) 17 June 2020
Land never became the property of partnership.
Your friend obliged by not taking rent of the land used.
Partnership / you never contributed the cost of land.
Land can not be distributed, it is not partnership property.

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