Criminal Trident Pack: IPC, CrPC and IEA by Sr. Adv. G.S Shukla and Adv. Raghav Arora
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kapil (Non)     02 February 2015

Unregistered partnership deed

Xyz company registered under Indian partnership act was formed in 1983, consisting 3 partners x,y and z . partnership deed was registered in registrar of firms.
After few year x and y retired . A new partner called M was induced who did an agreement with sole partner z. The partnership deed was never registered , nor the register of firm was notified and the Partnership agreement was done on a lapsed stamp paper ( more than a year old from the date the new partnership was formed) .

After 10 years there was a dispute between partner z & M , resulting to which Partner z closed the bank account of the company. 
As the partnership deed was not registered between z & M , M did not approached the court, instead filled a petition in arbitration court to re open the bank account  as there was a clause present in the unregistered partnership deed ( 'In arising of any disputes between partners the matter will be resolved... Arbitration')

I am the partner z and would like to know if 

Partner M on the basis of unregistered partnership deed can still give a petition in arbitration court to re open the bank account ? any way to quash this in the arbitration court?

What happens if the stamp paper of the partnership deed is more than one year old from the date of the partnership that was formed between z and M?



Learning

 6 Replies

ROHIT SHARMA (Legal Advisor )     02 February 2015

Dear Mr. Kapil,

1. Mr. M was inducted as a new partner in place of those who had retired from the registered xyz partnership firm . This induction of M must have been informed to the Registrar after due legal formalities.

2. The deed entered into between Z & M cannot be deemed as partnership deed inclusive of the existing xyz partnership firm. This is just a mere unregistered contract and no new partnership firm by another name was formed.

3. The bank account must be in the name of the existing  registered partnership firm.

4. If there was an arbitration clause in such dubious deed then the motion made by M before the arbitration court is not maintainable.

5. The closing of the bank account in the name of the registered partnership firm cannot be closed.

6. The use of the old stamp paper itself bears the testimony that no new partnership firm was contracted.  The intention of M can be proved as being done to commit false documentation.

7. The award by the arbitration court can be challenged before the High Court.

8. More background of this issue needs to be examined.

9. Private phone legal consultation can be had with this lawyer provided remuneration for the same are agreeable. Get my contact details by clicking my name shown in the L.H.S. margin of this reply format.

ROHIT SHARMA (Legal Advisor )     02 February 2015

Dear Mr. Kapil,

1. Mr. M was inducted as a new partner in place of those who had retired from the registered xyz partnership firm . This induction of M must have been informed to the Registrar after due legal formalities.

2. The deed entered into between Z & M cannot be deemed as partnership deed inclusive of the existing xyz partnership firm. This is just a mere unregistered contract and no new partnership firm by another name was formed.

3. The bank account must be in the name of the existing  registered partnership firm.

4. If there was an arbitration clause in such dubious deed then the motion made by M before the arbitration court is not maintainable.

5. The closing of the bank account in the name of the registered partnership firm cannot be closed.

6. The use of the old stamp paper itself bears the testimony that no new partnership firm was contracted.  The intention of M can be proved as being done to commit false documentation.

7. The award by the arbitration court can be challenged before the High Court.

8. More background of this issue needs to be examined.

9. Private phone legal consultation can be had with this lawyer provided remuneration for the same are agreeable. Get my contact details by clicking my name shown in the L.H.S. margin of this reply format.


(Guest)

Examination and analysis of the contents of related documents is necessary before arriving at some definite opinion.

Adv S K Gupta (Advocate High Court)     03 April 2015

Dear all,

After the retirement of X and Y the firm would have closed as their had been left only Single partner.

If Arbitration interest has been shown by both the parties in any manner than one can go in Arbitration

Adv S K Gupta (Advocate High Court)     03 April 2015

provide the copy of reconstitution deed

Dhiresh Pandey Honest (Advocate)     14 May 2015

Whether the appointment for the appointment of the Arbitrator filed in the High court or some specific arbitrator was mentioned in the Arbitration calause? If transactions took place for 10 years it was a genuine partbership for which a party can approach civil or criminal court, for the institution of its rights, for dispute resolution and fraud, breach or perjury by one of the partners. 


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