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Mohammed Rizwan Shaikh (AM)     15 September 2022

Section 11 invoked by the partners against the deceased partners legal heirs

A partnership was formed in 2018 by and between 4 partners. In 2020 one of the partners expired leaving behind his legal heirs and representatives. In 2018 the partners submitted the Deed for registration and since then they never looked into the business affairs and did not even open any bank account as mentioned in the Deed. After the death of the partner, the wife sent a letter to the other partners to include her as a partner as per the clause in the Partnership Deed but instead, the partners approached her and asked her to back off and threatened her with dire consequences.

Thus, in 2021 the legal heirs filed RTI to know the status of the registration with ROF, Mumbai. They learned that the objections have not been complied and is unregistered. After receiving the reply from ROF, Mumbai and the mala-fide intentions of the partners, the legal heirs changed the display board of the shop and started doing business under the old business name. it would be pertinent to note that the wife of the deceased partner is also one of the landlords of the suit premises where the business is running. And in order to restrain the partners of the business and other landlords, the deceased partner's wife filed RAD Suit in the Small Cause Court as advised by the Advocate. The partners and the landlords who are relatives submitted the Surrender of Tenancy Deed which was shocking for the wife. They had got the said document registered by informing the other partner who was alive at that time that it was a supplementary document of the Conveyance Deed. The wife is from a vernacular medium, is not versed with English

However, the wife challenged it in Civil Court and the matter is pending. The Advocate of the wife who was acting on behalf of the landlords/partners got a Pursis/Undertaking signed by the CA daughter of the wife without letting her know the consequences. The wife then filed a complaint against the Advocate with the Bar Council and the same is pending.The wife filed NM to set-aside the Pursis/Undertaking and the same is also pending.

Now the partners of the unregistered firm have filed Arbitration Petition u/s 11 against the deceased partner's wife to claim the suit premises on false grounds. They have even falsely stated that the wife of the deceased partner is also a partner without any documentary evidence. As per law, in case any partner dies, the firm should get re-constituted by filling the Form E within 90 days from the death of the partner before the ROF, which was not done. The possession of the shop is still with the wife.  

How far the Arbitration filed by the other partners against the deceased partner's wife will succeed and can she get it dismissed? 

What is the stand of the Unregistered Firm in the eyes of law?

Will the letter sent by the wife to the partners to include her as a partner in place of the deceased partner go against the wife, as through this letter only the wife learned the bad intentions and true colors of the partners?

 Any citations will be really very helpful, Experts

Regards,

Mohammed Rizwan

 

 

 



Learning

 2 Replies

Dr J C Vashista (Advocate)     15 September 2022

Be brief and specific for consideration and obligation of experts.

However, being a commercial query it is appropriate to consult a local prudent lawyer for professional advise.

1 Like

Mohammed Rizwan Shaikh (AM)     15 September 2022

Thanks, Dr. Vashista Sir


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