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Saura Patil   20 May 2021

Partnership deed

Does a partnership deed need to be registered to have any value in court proceedings or a notarized one will do? 



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 5 Replies

Rama chary Rachakonda (Secunderabad/Highcourt practice watsapp no.9989324294 )     20 May 2021

Indian partnership Act, 1932, section 18 states that a partner is an agent for doing the business of the firm and the partnership firm will not be treted as legal entity. Hence a firm which has entered into notarized partnership deed have no legal status for any proceedings. A notorized partnership firm cannot sue another party in case of any dispute. 

Hence it is suggested to register the deed 

Sankaranarayanan (Advocate)     20 May 2021

It should be registered with the registrar of firm in their jurisdiction District Registration office 

Arpita Chauhan   20 May 2021

Respected Ma'am,

If your partnership deed is only notarized then it will have no value in front of the Court of Law. A Partnership firm which has only entered into notarized partnership deed, it has no legal status. You cannot sue your partner if there is only a notarized partnership deed between the two. Therefore, I would suggest you that you register your partnership deed as soon as possible.

If however in case,  there is uncertainty of the life of the partnership in the short run then it is recommended to not to register the partnership and start the work with Notarized partnership. However when the things get streamlined it is better that it should get itself registered.

I hope I was able to help.

However, I would suggest you that for more clarification, please consult a lawyer as my answer is based on legal research on internet only and not provided by a professional like her.

Regards

Arpita Chauhan

Law Student

sneha jaiswal   21 May 2021

Hello, Greetings of the day!
For the query you posted, I would suggest that:
Partnership deed lends legality with notarization and registration without which the partnership deed would just be an agreement without enforceability in the court of law.
According to Section 18 of the Indian Partnership Act, 1932 which states that- A partnership firm which has only notarized the partnership deed has no legal status in the court of law. With just a notarized partnership deed, parties to the deed can’t sue one another in case of any dispute. 
It is recommended to register the partnership deed. Nevertheless, there is the vulnerability of the existence of the association in the short run then it is prescribed, not to enrol the organization and start the work with a Notarized organization. Anyway, when the things get smoothed out it ought to get itself enrolled.
Hope it helps
Best Regards,
Sneha Jaiswal
 

Saura Patil   21 May 2021

Thank you for helping me out! This was helpful!


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