Upgrad LLM

partnership deed


We have 3 partnership deeds made between partners and now the deeds are closed after full settlement. But partners are not agreeing to close the bank account. If we are not using that account anymore will there be any problem ?

Can the partners now can do any trouble or raise any issues if all deeds are closed under notary.

If we did a partnership under simple notary can any partner take legal action against any partner?
 
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ha21@rediffmail.com Mumbai : 9820174108

1. Partnership  Deed has to be dissolved by following procedures of law. Partnership Deed CANNOT simply be  "closed".

2. AFTER partnership is dissolved, THEN all assets & liabilties (including bank account) will be distributed according to dissolution deed.

Keep Smiling .... Hemant Agarwal
VISIT: www.chshelpforum.com

 
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Advocate

Better to consult local CA and lawyer and seeking advise and support to close the Firm. 

 
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Issue legal notice to other partners that you are not responsible if any consequences happens and serve it to them and keep copy and served acknowledgement to avoid future trouble.
 
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Retired employee.

The simple answer is:  Issue a registered notice to Bank informing the dissolution of the firm.  They will freeze the account.

 
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Retired employee.

A notary is not registration.  The registration enables others to proceed against partners as per the partnership act.  Partners in their opening forms to Bank assure that they will immediately intimate if there is any change in the constitution and in case of dissolution.  It is prudent to reduce such dissolution in writing to escape personal liability after such dissolution.  Taking prior precautions without giving scope for further complications is the duty of each and every prudent partner.  A notary is not Registration, registering with Registration of firms is the only approved way for Registration of a firm.  Maybe the notarized deed may help in settling individual issues and unenforceable against third party rights.  For the third party, each and every partner jointly and severally liable.

 
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Proprietor

If the P.Deed was registered with IGR of your state, then the Disolution of Partnership has to be registered there only.

There is always apprehension that if you leave firm account without any transaction ,it will go dormant after lapse of a specific period of time as per bank rule.But who can rule out misutilisation of such bank accounts by authorised signatories  till it goes dormant. 

So for safeguarding individual interest of all outgoing partners, you have to submit a copy of the registered Partnership Deed to the bank with request to close the bank account .

 
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Lawyer

Show relevant partnership documents to a local prudent CA/ lawyer for better appreciation, professsional advise and proceeding.

 
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Advocate

You may first opt for dissolution of partnership firm by following the procedures as laid down in the law.

Dissolution of a partnership firm may take place without the intervention of court or by the order of a court, in any of the ways specified later in this section. It may be noted that dissolution of the firm necessarily brings in dissolution of the partnership. Dissolution of a firm takes place in any of the following ways: 1. Dissolution by Agreement: A firm is dissolved : (a) with the consent of all the partners or (b) in accordance with a contract between the partners. 2. Compulsory Dissolution: A firm is dissolved compulsorily in the following cases: (a) when all the partners or all but one partner, become insolvent, rendering them incompetent to sign a contract; (b) when the business of the firm becomes illegal; or (c) when some event has taken place which makes it unlawful for the partners to carry on the business of the firm in partnership, e.g., when a partner who is a citizen of a country becomes an alien enemy because of the declaration of war with his country and India. 3. On the happening of certain contingencies: Subject to contract between the partners, a firm is dissolved : (a) if constituted for a fixed term, by the expiry of that term; (b) if constituted to carry out one or more ventures, by the completion thereof; (c) by the death of a partner; (d) by the adjudication of a partner as an insolvent. 4. Dissolution by Notice: In case of partnership at will, the firm may be dissolved if any one of the partners gives a notice in writing to the other partners, signifying his intention of seeking dissolution of the firm. 5. Dissolution by Court: At the suit of a partner, the court may order a partnership firm to be dissolved on any of the following grounds: (a) when a partner becomes insane; (b) when a partner becomes permanently incapable of performing his duties as a partner; (c) when a partner is guilty of misconduct which is likely to adversely affect the business of the firm;

(d) when a partner persistently commits breach of partnership agreement; (e) when a partner has transferred the whole of his interest in the firm to a third party; (f) when the business of the firm cannot be carried on except at a loss; or (g) when, on any ground, the court regards dissolution to be just and equitable.

 
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