There is a Partnership Form LF, with two partners: MMD and SRC.
The Partnership Deed has a clause that ONLY Partner MMD would have right to open and operate any bank account.
Q1: Is such a restrictive clause valid as per The Indian Partnership Act?
Q2: Can a bank open account with only MMD's signature on record for operation of account?
What is the problem, if the condition is mutually agreed?
Issue is that MMD got this clause introduced without consent of SRC. And SRC negligently signed the Deed.
Now can SRC give notice to MMD for cancellation of this clause ?
@ Anil Saraogi,
Provisions of Indian Partnership Act comes to play when there is any dispute.
In terms of existing agreement MMD is sole operator of Bank account of the firm, which may be amended by partners.
It would be advisable to consult and engage a local prudent lawyer for better appreciation of facts / documents, professional guidance and necessary proceeding.
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