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tejinder sethi   24 September 2025

Partition of shop in partnership business

We are having four shops and each shop is in individual name of our family members. Two shops are rented out. From other two shops we are running a partnership business with all 4 members as equal partners. Now one of the family member who is the one of the owner of shop from where the business is operating is threatening that he wants to put the wall and isolate his shop. No doubt one of the shop belongs to him but since a partnership business is operating from there in which he is also the partner, can he put a wall and take his share of the property without dissolution of partnership business.

Please advise.



 6 Replies

T. Kalaiselvan, Advocate (Advocate)     25 September 2025

The partnership business is different from the ownership of the property.

He may be a partner in the business but since he is the owner of part of the business premise, he can demand partition or even raise a wall in between to identify his shop individually.

The partnership business can be done from a diferent location too, there is no necessity for the partnership business to be dissolved for this reason, you can shift the location of the business to  a different place. 

tejinder sethi   25 September 2025

Thanks. But since he wants his share of property we want to break the partnership deed with him. All the four shops are adjacent to each other. So we want to continue the business but without him. Please advise regarding the same.

kavksatyanarayana (subregistrar/supdt.(retired))     25 September 2025

If you want to continue the business without your brother(partner),  a reconstitution deed of partnership shall be executed with form V and shall be filed before the Registrar of Firms.

Dr. J C Vashista (Advocate )     26 September 2025

In such a scenario the brother / partner do not want to continue in partnership firm/ business implies that he has withdrawn from partnership and the partnership stands dissolved. Isn't it ?

Non-consenting brother is owner of one of the 4 shops, he is well within his right to claim it for his individual occupation, possession and use. There is no legal infirmity.

 

P. Venu (Advocate)     26 September 2025

Your profile reveals that you are involved in property dispute with your siblings. Is this property covered by those litigations? 

tejinder sethi   26 September 2025

No litigations 


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