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Chandargi B B (CA)     26 July 2009

Partnership Property

Good evening to everybody,

In case of registered partnership firm,where one of the partners introduced the land & building as his capital and there is a mention regarding this in the deed of partnership.Now my question is whether all the partners of the firm have equal right in the land & building introduced by the partner or are there any points in other laws like Transfer of property Act  restrict such equal right to all.

Thanks & regards



Learning

 4 Replies

A V Vishal (Advocate)     26 July 2009

Dear Chandragi

By virtue of introduction of the property as capital, the partner has transferred the ownership rights to the partnership firm due to which it will be considered as the property of the firm and all the partners shall have claim over the same.

2 Like

Chandargi B B (CA)     29 July 2009

Dear vishal sir,can you quote, if there are any diceded caselaws regarding this matter.

Thank you

sunaina (Lawyer)     29 July 2009

Dear Chandargi,

Please have a look at this case, I have just given a relevant extract of the case:

 In Addanki Narayanappa and Anr. v. Bhaskara Krishnappa and Ors. AIR 1966 SC 1300, the Court opined:

 …The whole concept of partnership is to embark upon a joint venture and for that purchase to bring in as capital money or even property including immovable property. Once that is done whatever is brought in would cease to be the exclusive property of the person who brought it in. it would be the trading asset of the partnership in which all the partners would have interest in proportion to their share in the joint venture of the business of partnership. The person who brought it in would, therefore, not be able to claim or exercise any exclusive right over any property which he has brought in, much less over any other partnership property. He would not be able to exercise his right even to the extent of his share in the business of the partnership. As already stated his right during the subsistence of the partnership is to get his share of profits from time to time as maybe agreed upon among the partners and after the dissolution of the partnership or with his retirement from partnership of the value of his share in the net partnership assets as on the date of solution or retirement after a deduction of liabilities and prior charges….

 

2 Like

Chandargi B B (CA)     27 September 2009

Hi to all & Happy Navratri to all, are there any  decision(s) contradictory to the SC decision of Addanki Narayanappa and Anr. v. Bhaskara Krishnappa and Ors. AIR 1966 SC 1300, delivered with reference to partnership property.

Thanking you,


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