Sayan Chakrabarti (Partner) 31 January 2014

My liabilities for personal loan of partner

Hi,

I have a small General partnership firm based at Kolkata, India consisting of 2 partners including myself.

My question is:

If my partner takes a PERSONAL loan (not in the name of our firm) from a third party, can I be held personally liable in case he fails to payback the same?

Thanks.

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4 Replies

Prasun Chandra Das (Banker) 31 January 2014

No,

Only he (and/or any guarantor if any) will be responsible for the liability.

Advocate Bhartesh goyal (advocate) 01 February 2014

You will be held liable only when guarantee had been given by you else not..

Kumar Doab (FIN) 02 February 2014

Don't be co borrower, joint applicant, guarantor for a person whose credibility you don't trust.

Seawoods Consultants (Legal Consultants) 04 February 2014

If your partner has taken a personal loan, you are not liable in default unless:

a) you stand as a guarantor for that loan

b) the loan is taken to advance the business interest of your partnership firm with your consent

c) your consent was not taken but subsequently the loan was used to advance the business interst of your partnership firm and while doing so, you were aware that the money being used is the same loan taken by your partner