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jayaveladvocate (Lawyer)     17 April 2010

Partition of HUF and partition of unregistered firm

One A  karta of HUF died leaving behind his two sons. One son was hugly indebted to highly influential persons, His creditors list exceed 300. The said creditors ganged up against the family and they were tipped off their debtor son that his brother was in possession of huge pose of cash resources, he may be asked to pay off the debit and partition the property. Thus all creditors applied pressure on the solvent son stating that his father A has also guaranteed and borrowed a part of those loans, Thus it is money owed by the HUF, as such solvent son should also be liable for it. Unable to withstand he agrees to join execution of closure of the firm agreement. In the said document tactically the debtors got the first son make false statement that he was one of the partners in the firms run by the father and another son individually. All the properties worth more than 25 Crores were sold at meager rate. However a single house worth 25000 is left unsold after being paid all the creditors in full. Now the solvent son is in possession of the said property , the other son after 35 years filed a suit for partition. I appearing on behalf of the solvent son filed written statement stating since allegation of partneship firm is false one. Much less it is an unregistered firm, Hence liability of the partners can not be fixed in the partition suit. The present partnership firm without ascertaining the priror drawal of benefit from the HUF is bad , Members of the forum please enlighten me any further grounds 



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 1 Replies

Rasik Dagli (Lawyer)     17 April 2010

If You can prove that there was  no partnership Firm well and good. However, fact that Partnership is not registered  will not be helpful to you. Parners of an unregistered firm can sue and be suid by other partners. Unregistered firtm can not file a suit against third party. Please look into the provisions of Partnership Act.

RASIK DAGLI

Advocate


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