Liability of partner in repaying bank loan.

Guest (Querist) 05 July 2012 This query is : Resolved
Respected Ld. Members:

A partnership firm consisting of two partners had availed a loan of Rs.22 Lakh. Both of them have until now already paid off Rs.15 Lakh. Now problem is - one partner refuses to co-operate in paying off the remainder, i.e. Rs.7 Lakh. Bank has already issued notice to the defaulters and is contemplating legal action against both the partners.

Can the partner who is willing to repay the loan pay just his share of the remainder, ie, Rs.3.5 Lakh and be absolved of his liability??

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ajay sethi (Expert) 05 July 2012
no . liability is of the firm and both partners are responsible for debts of firm . you cnnaot by paying 50%absolve your self of remaining debt

Devajyoti Barman (Expert) 05 July 2012
The willing partner now make the payment and get the excess amount paid by him adjusted from profit.
The partners are jointly and severally liable for discharge of debt.

Guest (Expert) 05 July 2012
Liability on behalf of the firm rests jointly on each of the partners. Bank may not set off the liability partner-wise. You have to settle your personal dispute internally.

Harshada Shukl Kulkarni (Expert) 05 July 2012
Agreed with the experts. As the Partnership Firm has no separate legal entity and all the partners are jointly and severally liable in respect of the firms business, one partner can not absolve himself by paying his share of dues.