Property owned by a partnership company

Ra Ma (Querist) 26 January 2021 This query is : Resolved
A,B,C,D,E are partners in a partnership company. After some years D&E died. The company was wound up and the remaining financial amount was distributed between them. After some more years the legal heirs of D & E found that there is a property in the name of the company represented by A as it’s managing director. A,B,C want to grab the full property and they do not want to give any money to the legal heirs of D & E. What should the legal heirs of D & E do now? They do not have enough money to file a case and afford the long wait time. They want to sell their undivided share to a third party for whatever amount they can get. Is it OK?

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Quick Summary

When partners in a company die, their legal heirs are entitled to their share of the partnership's assets, including property. If the remaining partners attempt to withhold this share, the legal heirs have grounds to take legal action. While selling their share to a third party might seem like a quick solution, it's advisable to consult legal advice and potentially pursue legal proceedings to ensure fair distribution according to the partnership deed and dissolution accounts.

SHIRISH PAWAR, 7738990900 (Expert) 26 January 2021
Hello,

In the property of a partnership firm all partner have their agreed share. So if legal heirs of D and E are deprived of their share then legal heirs of D and E can take legal action against other partners. In current circumstances, if legal heirs of D and E gets the buyers of their share then they can proceed and sale their share in the property.

kavksatyanarayana (Expert) 26 January 2021
Whether the partnership Firm was registered or not. If registered, the Form-V with the dissolution of partnership deed filed before the Registrar of Firms of the District concerned. the Partnership Firm two persons D & E died out of 5 persons, now there are A, B, and C. But the property of the firm shall be divided by all the partners according to their share percentage. And D & E partners died, the amount (capital + Profit as bank account statement) shall be paid to their legal heirs. But you have no right to sell your father's share in the firm. File a case in the court of law.

Rajendra K Goyal (Expert) 31 January 2021
Partnership deed and deed of dissolution / accounts at the time of dissolution need to be analyzed.

If the property was in the name of partnership, was not accounted at the time of dissolution legal heirs of D & E have share in it.

If ABC are not ready to give their share, legal proceedings is the way left.

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