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Vikram (Owner)     08 January 2012

Partner liability for defaulted loan

Hi Folks,

I wanted to know about the liability of the partners on defaulted loans. Is the liability devided in terms of % of partnership? 

My problem is one of my relative is a partner in a firm and has defaulted loan with the firm. All the assets of the firm are already recovered by bank but still some loan is due. My relative is ready to pay the Partnership % amount but another partner is not. In this case is it possible to pay the amount of partnership % and take NOC? If not then how to proceed to resolve this issue? And what if any partner don't have any other property from which loan can be recovered?

Please reply to this as it is really question of life.. 

Thanks in advance.



Learning

 4 Replies

harsh asthana (advocate)     08 January 2012

If the nature of liability which you are refering to are Bank loans then you cannot absolve just with your share, but still a proper advice can be had after going through the contract

sanjay kumar (BE/ LLM in Corporate Laws)     09 January 2012

Section  13(b) of the Indian Partnetship Act states that all the partners are entitled to equal share in profits and shall contibute equally to the losses suffered by the Firm. Further, Section 25 states that every partner is liable jointly with the other partners and also severally for all acts of the firm done while he is partner. This is to say that as per IPA, all the aprtners have to equally share the liability of the loan. However, in case it is mentioned in the Partnership Deed that the partners will be entitiled to the profits and also loss as per their contribution(partnership percentage), then it is a different matter. For that, the partnership deed is to be seen. You can mail at sanjaykumar0203@gmail.com

Surendra Gupta (Banker)     10 January 2012

The loan documents executed by you (all partners) give option to the bank to recover its loan from the personal assets of any partner (after exausting the firms assets) as the libility of all the aprtners is joint & several

Surendra Gupta (Banker)     10 January 2012

The loan documents executed by you (all partners) give option to the bank to recover its loan from the personal assets of any partner (after exausting the firms assets) as the libility of all the aprtners is joint & several


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