Partnership dissolution
anitas
(Querist) 16 June 2014
This query is : Resolved
A partnership firm was constituted in the year 1975 and was dissolved(implied) by death of one of the partner int he year 2000. Since then there are some assets on the name of the Partneship which are maintained till date.
Who has the rights over those assets. The company later continued as proprietor ship on the same name maintained by one of the partners.
Devajyoti Barman
(Expert) 16 June 2014
The legal heirs of the deceased partner had right over the property of the firm as per his share.
Sankaranarayanan
(Expert) 16 June 2014
yes i do stand with expert Barmanji Suggestion. No more answer need to be furnished
Rajendra K Goyal
(Expert) 16 June 2014
The balance sheet on the date of dissolution has to be referred and share would be decided on that date as per provisions of partnership deed.
Then share of deceased partner would go to his legal heirs.
R.K Nanda
(Expert) 16 June 2014
no more to add.
anitas
(Querist) 16 June 2014
does the law of limitation does not apply since it is more than 12 years since 2 partners have expired.
There were totally 4 partners, 2 are alive.
Raj Kumar Makkad
(Expert) 17 June 2014
Law of limitation do not apply on the rendition of the accounts of the firm. You file the petition before the civil court seeking rendition of the accounts and partition of the properties of the firm as stood on the day of the death of one of the partners.
T. Kalaiselvan, Advocate
(Expert) 19 June 2014
I go with the views expressed by experts Mr. Rajendra K Goyal and Mr. Raj Kumar Makkad on this issue. The legal heirs of the deceased partners have the rights to claim the profits (if any) and other assets as on date of dissolution of partnership. After death of two partners, what about the third or the fourth partner because you have stated that the company has turned out to be proprietorship concern now.
anitas
(Querist) 19 June 2014
partnership was constituted with 4 partners , one of them acting as a MD on behalf of other in the year 1975. In the year 1980, an immovable asset was bought on the companies name, and in the year 2000 , 2 of the partners died. The MD converted the same into proprietor ship since then till today. Now suddenly the other partner who is alive is asking for his share after 14 years of the demise of the other 2 partners( which means that the company dissolved in 2000 itself).
Devajyoti Barman
(Expert) 19 June 2014
Right of partition has continuing cause of action and limitation act has no applicability in it.
Raj Kumar Makkad
(Expert) 21 June 2014
There is no limitation seeking rendition of the accounts and demand of the share in the partnership (?) business containing the name of the 4th partner who remained silent till long 14 years.
