Plot in the name of partnership firm but firm dissolved

This query is : Resolved 
 


Querist : Anonymous (Querist)
11 June 2021

The firm had 2 partners and it seems the firm is dissolved after the death of one of the partner. The partnership deed is neither notarized nor registered.

So now what happens to the plot?


kavksatyanarayanaOnline (Expert)
11 June 2021

Your query has no clarity. The firm seems to be dissolved means you don't know whether the firm is dissolved or not. So obtain whether the Firm dissolved or not and then put your query. The registration of Firm is optional. If there are two partners and if one partner is died, the firm automatically dissolved and there is no 2nd partner. If the property is in the name of the Firm, the other partner and the legal heirs of the deceased partner shall transfer/dispose the property in any manner.

Sankaranarayanan Online (Expert)
12 June 2021

Without proper registration then how the Government authority registered the property in that firm name? Need more clarity on you query will help to give further suggestions

Dr J C VashistaOnline (Expert)
13 June 2021

What do mean to convey from your statement "seems the firm has been dissolved"?
Vague and confusing facts posted by an "anonymous" author.


Querist : Anonymous (Querist)
13 June 2021

Thank you everyone. I am not very sure since I don't know the law about the partnership dissolved or not. So will appreciate it if you as experts can point me to the law or your advice on this part as well. But I do know for sure there were only 2 partners in the firm. One died in 2002 and the other died in 2006.

Sankaranarayanan Online (Expert)
13 June 2021

Beter to consult a local lawyer and get clarity

Sri Vijayan.AOnline (Expert)
13 June 2021

I dont find your role in this partnership firm.
You also dont know anything about the firm.

In this circumstance, consult a local good lawyer in person.
While meeting him, go with all papers with you. After that the lawyer will guide you.

P. Venu Online (Expert)
13 June 2021

Yes, the matter requires professional consultation.

T. Kalaiselvan, Advocate Online (Expert)
13 June 2021

The Supreme Court held that post-dissolution of firm each partner becomes entitled to his share in the profits of the firm post the settlement of accounts as per Section 48 of the Indian Partnership Act, 1932. The interest of the partners is in accordance with the proportion of their share in the firm
Shanti Bai Agrawal and Ors. v. Uma Bai Agarwal
In the above case, the Court considered mainly with the status of the partnership property post the dissolution of the partnership.

The Court observed that section 46 of the Indian Partnership Act makes it clear that in post-dissolution of the partnership, the firm’s property must first be applied to pay the debts and liabilities of the firm and only thereafter the surplus, if any, is to be distributed among the partners per the rights they have in respect of the partnership.
Addanki Narayanappa & Another v. Bhaskara Krishnappa & Ors
The Supreme Court in the above case observed that the share of a partner in a partnership is nothing more than the partner’s proportion of the assets of the partnership after they have been turned into money and applied in the partnership’s liquidation, irrespective of the property comprising of land or otherwise. Also, upon the partnership’s dissolution, first the debts and liabilities should be met out of the property of the firm and thereafter the assets of the firm be applied in rateable payment to each partner of the firm of what is due to him on account of advances made by him as distinguished from the capital and secondly, on account of capital, the residue, if any, being divided rateably among all partners.

The Apex Court also pointed out that the Act presupposes total liquidation of the partnership’s assets before the settlement of accounts between the firm’s partners post-dissolution of the same.



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