Legal Question in Business Law in India

Out of 7 partners 3 partners died and now 4 are left. According to rules it's clear that partbership deed is dissolved and we need a new partnership deed. Electricity connection is also permanently dissconnected due to non payment of bill and now they(electricity dept) want a new partnership deed. And this factory/firm is situated on the leased land, I want to know if partnership deed is dissolved then how to cancel the lease of the given land as out of 4 partner 2 of them don't want to make a new deed and want a separation and other 2 are not in favour.

So I want to ask how get lease canceled and separate from this firm ??? Its been 3 years that operations of firm are shut and there is no working capital.


Asked on 9/07/15, 1:32 pm

1 Answer from Attorneys
Vivek Mapara Vivek N. Mapara

You all need to execute a Deed of Dissolution & Reconstitution of Partnership. This Deed, will witness that the Existing Partnership is Dissolved, and a new Partnership is created. All those partners who want to retire from the Partnership will be outgoing partners, and remaining partners will constitute a new Partnership Firm.

In the Dissolution Deed, you can relieve the outgoing partners from any liability attached or arising out of the dissolved firm (subject to internal understand), and that the surviving partners can continue the business of the Partnership Firm. If there are any assets / net worth of the Firm, then the outgoing partner may be paid their % share out of the net worth of the Firm (if any, and subject to understanding between the partners).

So far so lease deed is concerned, it is concern of new reconstituted partnership firm. outgoing partner should not have any concern with this lease if new partnership wants to continue or cancel this deed.

I have advised you based on the limited facts you provided. Should you require any personal assistance drafting such deed or for further consultation on the issue, then feel free to contact me.

Regards

Vivek N Mapara

vnmlaws.com

Read more
Answered on 9/07/15, 9:24 pm


Related Questions & Answers

More Business Law questions and answers in India