saledeed of flat signed by one partner
J. P. Shah
(Querist) 13 December 2014
This query is : Resolved
Partnership firm builder insists that sale deed of flat wil be signed by one managing partner on behalf of firm. There is no power of attorny by all partners nor authority in partnership deed for such signing of sale deeds by single partner. Bank insisting power of attorney by all partners in favour of sigle signing partner or else that all 15 partners to execute sale deed. Please guide.
prabhakar singh
(Expert) 13 December 2014
If Partnership firm is registered with the registrar of firms and all the firms' partners are shown in the register of registrar then legally speaking even one partner can sign to bind all as a partner
is principal for himself and agent for other partners who all are collectively called Firm, provided property sought to be conveyed was acquired and recorded in name of partnership firms' name after the firm got registered with registrar.
However if BANK is insisting otherwise for precaution and safety, then one can not compel BANK to hold an other view as that is Banks' sweet will as lender.
J. P. Shah
(Querist) 13 December 2014
Tks for quick reply. It is a registered partnership firm. Please peruse section 19.2.g of partnership act. Implied authority does not include immovable property of firm. Bank is relying on this section.
J. P. Shah
(Querist) 13 December 2014
Pl refer above query.
prabhakar singh
(Expert) 13 December 2014
You are right Mr. Shah!
19. Implied authority of partner as agent of the firm:
2.In the absence of any usage or custom of trade to the contrary, the implied authority of a partner does not empower him to-
g.transfer immovable property belonging to the firm,
Rajendra K Goyal
(Expert) 13 December 2014
Agree with the expert prabhakar singh ji.
Shailesh Kr. Shah
(Expert) 14 December 2014
Bank is right.
Instead of poa, you can amend in the partnership deed that "one partner is authorise to dispose property of firm".
and the same registered with the registrar of firm.
