Upgrad LLM

Status of rental property used in partnership firm

This query is : Resolved 

Online (Querist)
06 November 2019

Partnership firm is carrying out the business at premised allotted to 3rd party by local authority. Whereas rentals are being paid in cash by one of the partner in the name of original authority. Whereas, one of the partner claims that as he is paying the rental, therefore, he will retain the property as user in case of division of partnership firm. Need your comments " how to claim the said property for equal distribution as firm is carrying the business at the said place for more the 10 years and original allottee has expired".

Isaac GabrielOnline (Expert)
06 November 2019

Issue lawyer notice informing to vacate since the condition of rent deed is vioalated.

H.M.PatnaikOnline (Expert)
06 November 2019

Dear Sanjaya,
First of all as per your query , there is no Rent agreement between the firm and the allotee of the premises. Even though the firm is using the said premises for business ,it does not have any locus-standi to use the same. As you say , the original allottee has expired , in such an event only his/her legal heirs have some right and the same has to be re-allotted in their name with the consent of the allotting authority by submitting required documents.

Dr J C VashistaOnline (Expert)
09 November 2019

I fully agree with the advise of expert Mr. HM Patnaik, on the death of allottee the property shall devolve upon his LRs.
Is there any valid Lease & Licence or rent agreement between the firm and allottee/ LRs?
The question of payment of rent by one of the partners in cash shall be considered in terms of L & L or Rent Agreement, which is not available as per hypothetical statement made by author of the query.
What is your locus standie and concern to the question paper?
It is advisable to consult a local prudent lawyer for better appreciation of facts/ relevant documents, guidance and proceeding if there is some truth in the story.

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