Share on Facebook

Share on Twitter

Share on LinkedIn

Share on Email

Share More

For Partnership Firm

(Querist) 27 May 2011 This query is : Resolved 
I have some queries regarding to open a partnership firm.

1) In order to establish a SOLICITORS AND ADVOCATES partnership firm, Is it mandatory that the Partners of the said firm shall have to be a Law Graduate?
2) A person of ordinary knowledge can establish a Solicitor and Advocate's firm?
3) Can a final year student of LLB can establish a Partnership firm with a person having same qualification?

Please kindly reply.
A V Vishal (Expert) 27 May 2011
1) In order to establish a SOLICITORS AND ADVOCATES partnership firm, Is it mandatory that the Partners of the said firm shall have to be a Law Graduate?
2) A person of ordinary knowledge can establish a Solicitor and Advocate's firm?
3) Can a final year student of LLB can establish a Partnership firm with a person having same qualification?

REPLY TO Q.1 IS "YES" AND THE REMAINING TWO QUERIES ARE "NO".
PALNITKAR V.V. (Expert) 27 May 2011
I think it would be enough if one of the partners, who would be active partner, should be an advocate. The other partners can be sleeping partners or the beneficiaries. I agree with the rest of replies given by Shri. Vishal.
R.Ramachandran (Expert) 27 May 2011
Dear Mr. Palnitkar,
The Advocates Act specifically prohibits an Advocate from sharing his revenue with a non-Advocate. Therefore, all the partners must be Advocates.
PALNITKAR V.V. (Expert) 27 May 2011
Oh! I must correct myself.
J K Agrawal (Expert) 28 May 2011
dear sir
I think there is no such restriction for constitution of a firm. but only an advocate can practice and nobody else.
Shashikant V. Patil (Expert) 28 May 2011
if the name of partnership firm is SOLICITORS AND ADVOCATES . The name of the firms itself apparently decide the criteria of the members of the firms (i.e. law graduate and Advocates).
R.Ramachandran (Expert) 28 May 2011
Mr. J.K.Agarwal's view is not correct.
Guest (Expert) 31 May 2011
Mr. Ramachandran,

As a matter of enhancement of my knowledge only, not to repudiate or to confirm the views of any one, I also have some doubt on the views of Mr. Vishal. So, I hope not only both of you may like to make some research and make us aware of what that should be. This may probably enhance yours as well as Mr. Vishal's faculty also. In my opinion, Mr. Agarwal may perhaps be right in his opinion on the following grounds:

In fact, law pertaining to Partnerships have no such discrimination about whether some qualification is a must or not, or only a specific class of persons should form a partnership firm.

On the other hand your views are that no advocate should share his revenue with non-advocates.

The question arises, in a partnership firm, where some advocate partners can be expected to render their expert services in legal field, even some other persons can share their other types of expertise, services, or a very convenient business space to the firm. So, you may please like to check whether any law SPECIFICALLY prohibits to form a mixed-up partnership firm or not?

If we see the practical aspects, an advocate necessarily has to share his revenue in the shape of rent of premises, consultancy with other professionals, telephone services, data operator's services, Chartered Accountant's services for maintaining his accounts or Audit thereof, Tax Consultant's services, etc. So, where is the harm in setting up a partnership firm to share each others' mutual services? Even the firm can work as a single witndow for several of the common clients on several aspects at one place, if formed in partnership, as a type of "Advocates and Consultants," not specifically for "Solicitors & Advocates."

I am of the opinion that an expert must be innovative in his field of services and should fill up the gaps and shortcomings of any law also with his services.
R.Ramachandran (Expert) 31 May 2011
Dear Mr. Dhingra,

Advocates Rules framed by Bar Council of India provides as under:

Chapter - III

Conditions for right to practice)

Rules under Section 49 (1) (ah) of the Act)

1...
2. An advocate shall not enter into a partnership or any other arrangement for sharing remuneration with any person or legal practitioner who is not an advocate.

The practical aspects mentioned by you do not fall under the category of sharing of revenue, but meeting of expenses.

I hope this clarifies the point.

It is only very recently, when the LLP Act came into force, the professionals like Advocates, Chartered Accountants and Company Secretaries can be partners under the LLP Act and not under Indian Partnership Act, 1932.
Suresh Gupta (Expert) 01 June 2011
i agree with the view of Expert Ramchandaran
Guest (Expert) 01 June 2011
Dear Ramachandran,

Thank you very much for your clarification. However, under the provisions of LLP system also, if the advocates form an LLP, I think the same conditions of Section 49(1)(ah) of the Act would come to the fore to restrict formation of LLP by the advocates. In fact, I felt that now the said conditions of the bar Council of India need some amemndment. May not be for a partnership firm but at least for formation of an LLP.

As of my personal views, I don't think there is any harm if professionals of different hues, like Advocates, CAs, CS's etc. can form a partnership firm or an LLP.


You need to be the querist or approved LAWyersclub expert to take part in this query .


Click here to login now



Similar Resolved Queries :





Post a Suggestion for LCI Team
Post a Legal Query