Partnership act

Guest (Querist) 02 June 2012 This query is : Resolved
Does transfer of share by a partner to another partner of the same firm for a consideration results in retirement of the transferor partner?

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Adv.R.P.Chugh (Expert) 02 June 2012
Dear Querist,

No it does not. It merely changes the proportion in which shares are held.

Guest (Querist) 02 June 2012
thank u for ur promt reply. I would further like to ask u tht if a partner sells his full interest in the partnership to another partner(ie 100% of his share), for a consideration, then is there a requirement of any kind of registration of any kind of deed?

Devajyoti Barman (Expert) 02 June 2012
Such share trasnfer unless involving immoveable property does not need registered transfer deed.

ajay sethi (Expert) 02 June 2012
Deed of Retirement would be necessary if after sale of stake he ceases to be a partner

Guest (Querist) 02 June 2012
thank you sir..exactly the case is... Registeration of partnership deed in 1975 by 5 partners ; namely - A,B,C,D,E In January 1989 , partner d filled a case of dissolution on firm , represented by the partners A , B , C & E . In 1990 , in the same court case ; Partner D sold his interest in partnership to B and partner B signed a deed of sale/deed of assignment AND partner b paid rs.xxxxxxx to partner d on the same date via draft in the court itself. the said deed was not registered or notorised then. and now there is a property of the same partnership firm in which the name of partner D still exists,so what can be done to remove his name.is there any case law which can support this kind of case

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