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Nimrod India (Partner)     13 May 2013

Fraudulent withdrawl in partnership

Hi Friends

We had a partnership firm and  my partner was supposed to retire from a particular date. Just before retirement (about 8-9 days prior) my partner  in my absence withdrew a huge amount in excess of his capital account which was lying in the bank account. We had agreement where any partner could sign cheques. 

I have documentary evidence to prove I was not in town on that day.Also our partnership deed allowed for partner's withdrawal only against accuriung share of profit as per mutual agreement.  The partner who has withdrawn this amount has huge nehative balance and needs to pay back the firm. Which means the withdrawal was not against accrued profit. Can I press criminal charges?

FYI Ours is an unregistered partnership firm.   Please help SOS!



Learning

 13 Replies

sahil kumar (cosultancy)     14 May 2013

If a written agreement describes how much a partner can withdraw then only there is some hope that if you file a legal suit u might get some relief

Nimrod India (Partner)     14 May 2013

 The partnership  agreement clealry says the partners can withdraw only against accrued profits with mutual agreement.

Ashish Singla 098140 76600 (Cheque Victim's Lawyer. LUDHIANA (PB))     14 May 2013

File a criminal complaint in copmpetent court against him under fraud and miappropriation of funds.

RAJIV BHASIN (ADVOCATE) (Bhasin Legal Consultants(SOLICITORS & ADVOCATES) bhasin.laws@yahoo.com 9811210505)     14 May 2013

Dear Ketan,

You have two remedies, Civil and Criminal. First go through your Partnership Deed thoroughly before taking any step. 

Your partner has withdrawn more than his capital then you can ask for rendition  of account on what ground he withdrew and other is cheating and criminal breach of trust.

 

RAJIV BHASIN 

ADVOCATE 

bhasin.laws@yahoo.com

9811210505

RAJIV BHASIN (ADVOCATE) (Bhasin Legal Consultants(SOLICITORS & ADVOCATES) bhasin.laws@yahoo.com 9811210505)     14 May 2013

Dear Ketan,

 

First read your Partnership Deed carefully, is it registered with Registrar of Firms.  You have two options You can file civil and criminal case. Criminal is cheating and criminal breach of trust and in civil rendition of accounts and recovery.

 

Rajiv Bhasin 

Advocate

bhasin.laws@yahoo.com

9811210505

1 Like

RAJIV BHASIN (ADVOCATE) (Bhasin Legal Consultants(SOLICITORS & ADVOCATES) bhasin.laws@yahoo.com 9811210505)     14 May 2013

Dear Ketan,

 

You can file criminal case for criminal breach of trust and cheating against your partner and civil suit for rendition of accounts and recover as per circumstances. Please also check whether the Partnership Deed is registered or not.

 

Rajiv Bhasin 

Advocate

bhasin.laws@yahoo.com

9811210505

MARU ADVOCATE (simple solutions for criminal legal problems -- yourpunch@gmail.com)     14 May 2013

It can be at the most civil liability not criminal since in partnership each for all and all for each.

 

Incidently Mr Singla what happened to your cheque case for which you made many post for criminal  actions against the complainant.

Nimrod India (Partner)     14 May 2013

Dear Rajiv

 

Ours ia an unregistered partnership.  Will this amount to criminal breach of trust or cheating or both?

Thanks

 

Ketan

Nimrod India (Partner)     14 May 2013

Sir, Would this mean any partner can arbitarily take away firm's money without other partner's knowledge and get away without criminal liability?

RAJIV BHASIN (ADVOCATE) (Bhasin Legal Consultants(SOLICITORS & ADVOCATES) bhasin.laws@yahoo.com 9811210505)     14 May 2013

Dear Ketan,

Unregistered partnership hit by section 69 of partnership act. you cannot bring any suit against the partner but you can use the criminal action also.  Now it cannot be civil but we can try after going through the partnership in consonace with partnership act.

 

Rajiv Bhasin

Advocate

bhasin.laws@yahoo.com

9811210505

 

Nimrod India (Partner)     14 May 2013

Can you please inform under what section can I bring criminal action? 

RAJIV BHASIN (ADVOCATE) (Bhasin Legal Consultants(SOLICITORS & ADVOCATES) bhasin.laws@yahoo.com 9811210505)     14 May 2013

Dear Ketan,

 

You can file criminal case u/s 403, 406 and 420 of IPC.

 

Rajiv Bhasin

Advocate

bhasin.laws@yahoo.com

9811210505

Ashish Singla 098140 76600 (Cheque Victim's Lawyer. LUDHIANA (PB))     14 May 2013

As suggested by me earlier that you are available with criminal action only , but section 406 does not move with section 420 , go ahead with blend of sections 403, 420, 120-B, it will serve your purpose. But before taking any step against anyone you pl assure that you have sufficient evidences in your favour. 


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