Sec.17 Indian Registration Act on Distrubution of Partnership Assets

Consultant

Dear Experts,

Sec.17 Indian Registration Act says that The document which records the settlement in this case is an award which does not require registration under section 17 of the Registration Act since the document does not transfer or assign interest in any assesee.

So, I would like to know:
1) Whether there will be any Registration Fee attracted or not while Distributing the Firm's Assets/Properties on Dissolution of Partnership FIRM?

2) Have the property Jointly in Partners name even after Dissolution of Firm?

3) How to discharge the Firm's Property alone from partnership without Dissolution and keep the Title in partners name, individually?

4)However, I believe that Firm name is only a compendious name and partners are real owners of the asset, how the asset transferred to individuals? Whether required Registration of document or settlement deed again? If so, what is the stamp duty cum regn cost in Tamilnadu state?!
 
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subregistrar/supdt.(retired)

The Assets and liabilities shall be distributed as per their shares as noted in the Partnership deed.  At the time of dissolution, it shall be filed before the Registrar of Firms concerned.  This partnership deed does not require registration under Indian Registration Act.  But the Dissolution of Partnership Deed should be drafted on Rs.300/- only and the fees payable on the dissolution only under Partnership Act.


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Consultant

Dear kavksatyanarayana sir,
Thanks for your reply.
But, my point is that the "document", here means, "Properties/Assets belongs to Partnrrship Firm".


So, I would like to know the below points in more clear way:
1) Whether there will be "any Registration Fee attracted or not (Refer: Sec.17 of Indian Regn. Act) while Distributing the Firm's Assets/Properties on Dissolution of Partnership FIRM"?

2) Have the "Property (which was earlier in Firm name) Jointly owned in Partners name even after Dissolution of Firm"?

3) How to "discharge the Firm's Property alone from partnership without Dissolution" and keep the "Title in partners name, individually"?

4)However, I believe that Firm name is only a compendious name and partners are real owners of the asset, how the asset transferred to individuals? Whether required Registration of Asset/document or settlement deed again? If so, what is the stamp duty cum regn cost for the distributed assets, in Tamilnadu state?!
 
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subregistrar/supdt.(retired)

1. No fees attract under IR Act.   2. No.  After the dissolution of the Partnership business, the assets of the Firm will be divided into the Partners individually as per their shares in the business.  3.  No.  if the business in force and the firm can sell the property and it be deposited in Bank conerned and after dissolution the amount will be divided as per shares of the partners.  4. If the Firm wants to sell, it can.  Once the individuals invested the assets into Firm, then automatically it will become firms' property.


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Consultant

Dear Mr.kavksatyanarayana sir,
Thanks for your immd respond and detailed explanation.
 
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Consultant

Dear Sirs,
One of the Partner needs to relieve from his duties & responsibilities and retire from the partnership & would like to induct his immediate family member, say wife, in his place. However, he wish to continue the said partnership either in his name or his wife's, but the main subject is to Transfer his share of asset in the firm to his wife.

Simply, his family member (wife) Name needs to be inserted instead of his in the land which is now firm owned, implicitly, he & his cousin are the current joint owners/partners. As the said partner is the major investor/managing partner of the firm (which is Non-functional currently), he holds 60% of share & the rest is his partner's, as per Partnership deed.

So can he Transfer the land (Undivided Property) DIRECTLY TO HIS WIFE IN WAY OF SETTLEMENT as said in Transfer of Property Act (OR) He needs to brought her in as an INCOMING PARTNER OF THE FIRM (HE OUT..) AND TRANSFER ALL HIS RIGHTS/INTERESTS/SHARES OF PARTNERSHIP TO HIS WIFE?

Else, is it necessary/mandatory to make a Sale deed & Transfer the land to his wife, in case not inducting her in Partnership?

In simple words, Either he may wish to continue in Partnership Or inducting his wife as partner, he would like to transfer/settle his share to his wife, with other partner's consent. So, what is the simple way out?
 
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