Whether is it mandatory to get partnership deed notarised?
Madhu Mittal
(Querist) 14 June 2021
This query is : Resolved
Whether is it mandatory to get Partnership Deed (any further deed for introduction of a new partner or retirement of a partner) notarised?
If not mandatory, and it is done additionally without requirement of law. As it is well settled law that notarized deed is to be proved by the person who presents it to be true, and if it is “not proved” notarized as it bears notary register Serial no. 500A and 500B.
1.please guide whether if notarization is not mandatory, and “not proved” its notarisation , still the deed prevails or not as notarization being additional?
2.Or even if not required by law, it is notarized, and “not proved” as notarized, the deed will be null and void ?
Thanks in advance
kavksatyanarayana
(Expert) 14 June 2021
Partnership deed registration is optional. Notarisation is not mandatory. If notarised there is no problem and not proved question does arise if there are no disputes. If the Notary did any mistake, the party is not responsible for it. So the deed prevails if it is otherwise in order.
T. Kalaiselvan, Advocate
(Expert) 15 June 2021
In terms of Section 31 of the Indian Partnership Act, 1932, a new person can be introduced as a partner into a firm with the consent of all the existing partners subject to the execution of a fresh Partnership Deed.
The consent is put in writing by signing a agreement which is called as Deed of Admission. The Deed of Admission must contain the terms regularly contained in Partnership Deed along with the terms of introduction on new partner.
The Deed of Admission must bear the necessary stamp payable under the stamp act applicable in the state in which the partnership deed is signed. It is also advisable to get the deed registered with the Register of Firms of the concerned state in which partnership business is constituted.
If the original deed has been registered with the local Registrar of Firms, then it is advisable to register this too.
Any slight changes made in the relationship between partners in a partnership firm would result in the reconstitution of the firm itself. Thus, whenever a new partner is introduced or when an existing partner is being removed, a partnership firm is bound to be reconstituted.
Dr J C Vashista
(Expert) 15 June 2021
Registration of partnership is optional, which may be registered or notary attested.
In both the situations it is admissible in evidence.
Unregistered and/or unattested document can not be admitted in evidence.
Advocate Bhartesh goyal
(Expert) 15 June 2021
Though under Indian Partnership Act it is not mandatory to register partnership deed with Registrar of Firms but for other legal advantages it is advisable to get registered partnership deed with Registrar of Firms.
Sankaranarayanan
(Expert) 15 June 2021
Even Though it is not mandatory there are So many advantages can get if the deed been registered with the Registrar of Firms.
Madhu Mittal
(Querist) 15 June 2021
Respected Sirs,
Thanks all of you for devoting your valuable time in attending my query, special thanks to Sh. Kavksatyanarayana who gave guidelines what is required upto a great extent. “If notary made a mistake, party is not responsible for it.So did prevails if otherwise in order.” Here by Serial no. 500A and 500B, does not it apparently seems that these are antedated inserted for the benefit of party with connivance with party. Because As per notary register, it should be like 500, 501. 502. Now please guide again :
1.please guide whether if notarization is not mandatory, and “not proved” its notarisation , still the deed prevails or not as notarization being additional?
2.Or even if not required by law, it is notarized, and “not proved” as notarized, the deed itself will be null and void ?
I also request all the experts to guide on above points, and further on this 3rd point also, if this antedated deed, is registered with Registrar of Firms, will that antedated deed will be null and void or not as notarization is not mandatory?
4th point, whether if deeds (regarding partner incoming and resigning) which bears S.no.500A and 500B is “not proved” as lawfully notarized, is there any criminal actions also be taken against the Partners mentioned in deeds who getting benefit out of these deeds,
Please guide,
Madhu Mittal
(Querist) 15 June 2021
Respected Sirs,
above query is related to quety at https://www.lawyersclubindia.com/experts/details.asp?mod_id=716111 upto some extent. so please guide accordingly.
Thanks in advance
SHIRISH PAWAR, 7738990900
(Expert) 15 June 2021
Hello,
Partnership deed has to registered with the registrar. If the previous deed is registered with the registrar and any supplemental deed is a notarized that case previous registered deed will survive.
J K Agrawal
(Expert) 15 June 2021
1 deed still prevails if proved otherwise.
2 if it is proved that notarization is fake it creates doubt on original itself but still the deed can be proved. If it is admitted by all the partners it may be proved valid. (but all the partners having adverse interest against the objector then the admission of partners also having no value).
3 'Antedated'? - not possible to make change in date if deed is registered with the registrar of firms. The deed registered with the registrar itself is proved document and no other proof required to prove partnership.
4 criminal action against all the partners, all the witness and Notary possible any benefit taken by partners reversible.
T. Kalaiselvan, Advocate
(Expert) 15 June 2021
All your subsequent questions have been attended to properly by many experts, the more and more doubts you may rise, the more and more contradictory opinions will surface, hence you may decide as per the prevailing circumstances on all such further actions based on some valuable suggestions made by various experts of this forum or you can consult an experienced lawyer in the local who has specialized himself/herself in this field of law,
Dr J C Vashista
(Expert) 16 June 2021
@ Ms. Madhu Mittal,
You have repeated same questions in subsequent post, response of the same may be read again, where the experts have replied properly and attempted to satisfy your queries.
Madhu Mittal
(Querist) 18 June 2021
Respected Sir Dr. J C Vashistaji and other Respected experts:
Registration of Partnership........"or notary attested", "Registration/Unregistration of Partnership Firm, it is ok, written in Partnership Act, but I want to study more about this "notary attested", So first guidlines is required :where it is written in law or elsewhere, that Partnership deed is to be attested by Notary, and second guidelines is required if attested by Notary,it is admissible in evidence. So I can myself study more and more about this, Thanks with Regards, I know this is not tutorial Front, but for the sake of justice, please guide. As I do not want to fight only for increasing litigation, but I want to fight to win as per law. All of us knows that how lengthy is our judicial system, so I want to know beforehand, all if and buts of anything related to everything.As far as local advocates are concerned, not every advocate is competent enough, you also know the practice in advocates, every advocates requires case first, so a case can be given to only one advocate, I am not competent enough to decide which advocate is competent enough to which case. so I come here. and with the advises of this forum experts, my many cases have been solved, though it takes a lot of time in our judicial system, but when they were decided , decided in my favour. Thanks a lot to the persons who has started this forum for the cause of justice, and from this forum, one can get correct advise, and if one is correct, can win case.
Madhu Mittal
(Querist) 19 June 2021
To shri J K Arawalji,
Antidated here is possible, a partner died on 01.08.2020 , a new partner of very old was inserted and wife of dead partner resigned on 01.07.2020, this new dead was got notarised as serial no. 500A on 01.07.2020 on stamp paper of 01.07.2020 and as there is three months for informing Registrar of firms as well as information to public by publishing. This was published in newspaper on 28.09.2020. This way this new deed was made for the benefit of wife of dead partner to take her out of cases of dishonor of post dated cheques of firms which are of 01.10.2020 and onwards, but issued and handover by firm before 01.07.2020 signed by dead partner, Thus on the basis of this deed dated 01.07.2020, the entry was got made at the office of Registrar of Firms within three months of deed 01.07.2020.
