Lpartnership - business stay order

Hi - My father and his two brothers entered a partnership establishing a firm back in 1970's. In the recent years his two  brothers have been denying him of his share and have asked our appointed Income tax lawyer to stop providing my father with any bank statements or records. They have also stopped filling his income tax statement stating that his name has been now removed and he is no longer a partner in the firm.

As we also have another business my father started spending more time towards the other business and all of the above started happening in the background. A similar trend has started to happen with the other business as well now.

Not only his brothers have now created another partnership deed among themselves but have also moved the firm accounts from one bank to another bank where my father's name is missing. They have probably bribed their way to make this happen. But the original company that was established in late 70's still stands and my father did not sign or approve that he is no longer the partner.

There is currently a case against my fathers two borthers in the civil court, I know that the court will take its due course but what I want to find out is :

Is there a way my father can seek a stay order on the business till the time a ruling is given? If not, under what circumstances can a stay order be given for a business to stop functioning?

Also is there a case against our firms Income Tax lawyer who is not providing my father with the business records, stopped filing his IT returns and also assisted in creating the other partnership deed? If yes how can I approach this?





BE/ LLM in Corporate Laws

The information is very sketchy and I dont think you will be able to provide complete details on this forum. So better contact a lawyer and explain to him your case.But some of the general replies are as follows:-

1. As per Indian Partnership Act,1932, majority partners cannot expel a partner unless such a provision exists in the Partnership Deed.

2. The aggrieved Partner can send a Legal Notice to the Firm /Firm's Lawyer to provide the details of the business carried out during the year. Failure to do so shall invite legal action against the firm/ Income Tax lawyer.

3, Stay Orders are passed by the Courts to grant a status-quo in the matter. That way, the Courts cannot order stoppage of the Business but the Courts can order contiuation of your father acting as a bonafide partner till the Case is disposed off.

4. As regards, Income Tax Lawyer; you have to sent him a legal notice.Most probably, he will reply that the firm has specifically instructed him not to pass this information to your father. In that case, your father has to send a legal notice to the Firm and based on the averments of the Firm, the future legal action can be decided.




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