I have a doubt regarding partnership property
Vivek Singh
(Querist) 02 November 2020
This query is : Resolved
Hello dear EXPERTS,
I have one question,
We are buying land for business purposes and the land belongs to a partnership firm.
FACTS ARE:-
In 1985 - 3 partners Partner A, Partner B, and Partner C formed a PARTNERSHIP FIRM and brought land in the name of Partnership Firm by (Registered Sale deed executed by PARTNER A).
In 2004 - All Partners signed a dissolution deed and transferred all the assets in the name of PARTNER A
NOW ALL PARTNERS RETIRED AND PARTNERSHIP FIRM HAS ONE PARTNER ONLY ( I e PARTNER A with all assets of firm)
NO SALE DEED IS DONE BY Partner A in favor of any other partner
In 2005 - PARTNER A made a new partnership deed with the same name and same business with New Partner D and New Partner E
( As per new partnership deed, No land is put in stock by PARTNER A as his capital )
In 2006 - PARTNER A retired from Partnership firm leaving New Partner D and New Partner E
My Questions are:-
1. THE LAND BELONGS TO WHOME NOW ( PARTNER A) or New Partner D & E?
2. TO PURCHASE THIS PROPERTY REGISTERED SALE DEED IS required with stamp duty or PARTNERSHIP deed is enough without stamp duty?
P.S. I am dealing with PARTNER A to purchase the property, want to make sure that I am dealing with the right person.
Please help in clearing my doubt.
P. Venu
(Expert) 02 November 2020
Facts posted suggest that the land continues to be vested with A.
kavksatyanarayana
(Expert) 02 November 2020
At the time of the formation of Partnership Firm in the year 1985, is it registered before the Registrar of Firms? And was the land buy in the name of A representing the partnership firm or in the individual capacity of A? Is the dissolution of the Partnership Firm filed before the Registrar of Firms? Without this information, cannot form an opinion to your query.
Vivek Singh
(Querist) 02 November 2020
@kavksatyanarayana Sir, Yes in 1985, it was registered before the registrar of firm
As per conveyence deed, the name is written as " (Name of Partner A) partner of M/S AJANTA STEELS ", with the signature of Partner A only.
Yes Dissolution of Firm is filed before Registrar of firm
Dr J C Vashista
(Expert) 03 November 2020
The property was purchased in the name of partnership firm, through "A" as authorised representative / attorney of partnership firm for the registration of Sale Deed.
Consequent upon dissolution of the firm the land came in the share of "A" as absolute owner.
New partners D & E enjoyed the property which remained in the name of "A" and not the new partnership firm.
Accordingly "A" is absolute titleholder/ owner of the subject land and he is the only person to deal with it.
Dr J C Vashista
(Expert) 03 November 2020
It would be better to contact and consult a local prudent lawyer for appreciation of facts/ documents and professional advise.
Vivek Singh
(Querist) 04 November 2020
Thank you P.venu and Vashisht Sir, May God bless you .
Rajendra K Goyal
(Expert) 04 November 2020
You said:
1. THE LAND BELONGS TO WHOME NOW ( PARTNER A) or New Partner D & E?
Reply:
In your original query you have mentioned that:
“In 1985 - 3 partners Partner A, Partner B, and Partner C formed a PARTNERSHIP FIRM and brought land in the name of Partnership Firm by (Registered Sale deed executed by PARTNER A).”
It means that the property was registered in the name of Partnership firm.
Later you have mentioned that the name is written as :
“As per conveyence deed, the name is written as " (Name of Partner A) partner of M/S AJANTA STEELS ", with the signature of Partner A only.”
It indicates that the property was purchased by A who was partner and purchase was not in the name of partnership.
Statements are contradictory, all documents need to be referred before forming any definite opinion. Discuss in detail with local lawyer.
If the property was in the name of partnership, after dissolution it needed to be registered in the name of A. and to new partnership afterwards. However, dissolution deed, new partnership deed, other related documents has to be referred to form an opinion.
Rajendra K Goyal
(Expert) 04 November 2020
You said:
2. TO PURCHASE THIS PROPERTY REGISTERED SALE DEED IS required with stamp duty or PARTNERSHIP deed is enough without stamp duty?
Reply:
For ownership rights, registered sale deed of property is essential.
You said:
P.S. I am dealing with PARTNER A to purchase the property, want to make sure that I am dealing with the right person.
Reply:
Considerable amount is involved, show all documents to local lawyer and discuss in detail.
