Requirement of legal heirship cert. for activating bank a/c in partnership on death of partner
Querist :
Anonymous
(Querist) 09 August 2011
This query is : Resolved
Dear Sirs
In the event of death of a partner in accordance with the continuity clause in the original deed a new deed prepared and submitted to the bank. But bank declined to release the amount standing credit as on the date of death in demand of legal heir ship certificate. Is the banks stand is correct in law
ajay sethi
(Expert) 10 August 2011
how many partners were there in firm?
without going through the terms of partnership deed difficult to advice
Querist :
Anonymous
(Querist) 10 August 2011
Old Partnership consist of father, mother, daughter and one outsider
Reconstituted deed consist of Mother, daughter, outsider and son is newly admitted
ajay sethi
(Expert) 10 August 2011
1)did the partnership deed contain a clause that in the event of death of one partner firm would be dissolved .in such a case surviving partners can continue to operate account for winding up of firm
2)the share of deceased partner in account of firm will be released to his legal heirs on furnishing death certificate,copy of will or legal heirship certificate,/ letters of adminisitrtion ,
3)bank will also insist on NOC from surviving partners /indemnity bond for release of funds to legal heirs
ajay sethi
(Expert) 10 August 2011
bank is trying to protect the interest s of heirs of deceased partner . the balance in existing account after payment of share of deceased partner can be transferred to new account on instructions of surviving partner
Querist :
Anonymous
(Querist) 10 August 2011
The clause is as follows
The partnership shall not be dissolved either by death, retirement or insolvency of any of the partners.
R.Ramachandran
(Expert) 10 August 2011
Dear Anonymous,
What does the partnership deed says in regard to settlement of amounts in the credit of the deceased partner?
What does the partnership deed says about inducting anyone else in place of deceased partner?
While the partnership can continue, the accounts standing in the credit of the deceased partner on the date of his death requires to be determined and settled. The settlement will be effected to the legal heirs of the deceased partner (unless he had left any WILL in this regard.)
As rightly pointed out by Mr. Sethi, the bank is trying to protect the interests of the heirs of the deceased partner.
