Legal Question in Business Law in India

A (Me) and B started an unregistered partnership firm(Firm)

wayback in 1994 and are equal partners in the firm.

Firm owns a building which is rented to a limited Company(Company).

Company exists since 1998.

Both A and B were promoter directors of the Company till 2011,

after which A has resigned from board and there are other investors

holding the shares and have nominee directors on board.

A holds around 10% of equity shares of the Company and B owns around 20%.

B is also Managing Director and CEO of the Company

Firm does not have any other transaction than the rental income

for the building which is rented to Company

There is a rental agreement between both the parties, renewable every year and was

last renewed in 2009. Broad terms of which tells both parties on mutual consent may

extend the agreement. Company was paying rent till 2013 April and after which it has

stopped paying rent, however it continue to use the premises. Since there is conflict

between A and B, Company claims B has asked Company not to pay rent, hence they have

not paid the rent.

Now my question is, As a partner of the unregistered firm , do I have legal stand to fight

this in court of law alone as B is the CEO and who has refused to pay and who is actually the opponent


Asked on 8/19/15, 10:05 pm

1 Answer from Attorneys
Fca Prashant Chavan Expert Edge LLP

20.08.2015

Dear Sir / Madam,

If 70% of the shareholding is held by persons other than A and B, they being the majority, have the authority to decide the further course of action in the matter.

Regards,

Read more
Answered on 8/20/15, 3:34 am


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