Legal Question in Business Law in India

Hi, I have an important question regarding the partnership law.I have joined as a partner for a partnership firm from March 2013.We are 3 partners including me with equal partnership.We are in to the business of calibration and validation services in Bangalore.Recently i found out that one of our partner has opened an another company in Cochin , Kerala and he is the working partner for that.That company which he is opened is doing the same business ie; exact competition.And i also found out he is diverting some of the business to that company as well.He never disclosed this to us or never had a discussion regarding this before.When i asked him about this he is saying there is nothing wrong in that.Is it so ?.I would like to know what legal actions i can take against him as per Indian Partnership Act?.


Asked on 2/07/14, 10:04 pm

2 Answers from Attorneys

To answer your question I would like to view your bye-laws or partnership deed. To get more and service, contact:

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Answered on 2/07/14, 10:25 pm
Fca Prashant Chavan Expert Edge LLP

08.02.2014

Dear Sir / Madam,

Usually, the terms and conditions in the Partnership Deed prohibit a partner from engaging in any activity or business similar to the business of the partnership, without the explicit knowledge and written consent of all the other partners to do so. Should there be such a clause in your Partnership Deed, you are entitled to initiate legal action against the defaulting partner with the Registrar of Partnership Firms and the Court.

Regards,

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Answered on 2/08/14, 3:27 am


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