nlr (na) 15 December 2009
A partnership firm was formed in 1993 between
1)Mr. X, representing his HUF
and 5 other individiuals.
Is such a partnership valid?
Can Mr. X who held 40% in the above firm and is no longer alive will his share in the firm to his daughter? Mr. X also held General Power of Attorney as agreed to by all the partners.
Pls advise.
Thanks in advance.
Devajyoti Barman (Advocate) 15 December 2009
Such partnership is absolutely valid and on his death his share falls on his daughters also if he is a memeber of HUF and not a mere constituted attorney.
V. VASUDEVAN (LEGAL COUNSEL) 16 December 2009
To be more precise, only the shares of the father in his personal capacity and his part of the share as an HUF will devolve on his daughter(s). This means, his share of assets accrued on the date of his death minus any liabilities owed by him to the partnership. Hence a provisional balance sheet of the firm may have to be drawn on the date of his death, in line with the partnership deed to ascertain the net asset/shares.
vasudevan
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