Partnership property got into the books sold as proprietor's


Dear Learned Lawyers

3 individual Properties XYZ, was purchased in the year 1997 / 1998 / 1999 in the proprietary concern's  name Yetticate Exports,  represented by it's proprietor  A.

Yetticate Exports then got converted to a Partnership firm  by B becoming the other Patner ( only two Partners ) in 2001. These properties were not registered to the firms name  as per Section 14 of the Indian Partnership Act..  All the 3  Properties were got into the books of accounts and the Balance Sheet and P&L showed all the 3 properties and depreciation availed by the firm Yetticate Exports.

Business went under loss and one of the Property X was sold by both Partners in April  2005.

In Nov 2005 the Partner A went ahead and sold the Property Y without Partner B's knowledge while signing the sale deed as Proprietor and mentioning the PAN number of the Firm.  

Now in March 2017 he went ahead and sold the Property Z again without Partner B's knowledge while signing the sale deed as a Proprietor.

All this has happened due to the fact that the original Sale Deeds of both the Properties Y & Z  read  - Purchaser   Yetticate Exports, represented by its Proprietor A. The Purchasesr of both the properties were not aware that it has become a  Firm"s property as there was no evidence for them to suspect the change in status of he property.

In the second case the Purchaser has issued  the cheque in the Partner A's name as he represented himself as a Proprietor .

Please advice how we can fight a case against the Partner A for his cheat and  while misleading the Purchaser.

P.S : The Partnership Deed has no mention of the Properties got into the firm,and stays silent, while the first Balance sheet and IT returns of 2001-02 shows the assets of the firm and depreciation availd by the firm.

The Partnership Deed was not registerred.

Please advice.

Thanks in advance. 

Chandran Baloo

Partner B

 

 
Reply   
 

If the partner has to sell the property then it has to be in the name of partnership. you may move for cancellation of sale deed by filing declaration suit in court.

Advocate Nitish Banka

nitish@lexspeak.in

9891549997

 
Reply   
 


LEAVE A REPLY


    

Your are not logged in . Please login to post replies

Click here to Login / Register  



 

Search Forum:








×

  LAWyersclubindia Menu