Partnership firm bank account matter


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?

 
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yes if it is expressly mentioned and agreed by the parties. you can amend the agreement
 
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Advocate

What is the problem, if the condition is mutually agreed?

 
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Thanks Vineetji.

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 ?

 
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Lawyer

Originally posted by : Anil Saraogi
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?

@ 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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