Legal Question in Business Law in India

One of the partners of an unregistered partnership firm of four partners created in 1968 with 25% share each dies in 1980. The remainder surviving partners execute a fresh partnership deed with three partners in 1980 a fortnight after demise of the partner and show themselves as 33% share holders each in the new deed. There was no such provision or contract which authorized the surviving partners to do so in the original partnership deed of 1968. They then got the immovable property(commercial building)of the firm, purchased during life time of the fourth partner, in 1971 mutated in their three individual names with 33% share each. All this was done without concurrence or NOC of/from heirs of deceased partner and without settlement of estate of deceased partner with his heirs.A dissolution Deed of old firm too was never executed. Kindly intimate if executing a new partnership deed without settling share of heirs of deceased partner is legal? Whether the mutation of immovable property managed by them is valid/legal. What is the course available to the left out heirs to obtain their fathers share etc?


Asked on 10/26/13, 11:53 pm

1 Answer from Attorneys
Fca Prashant Chavan Expert Edge LLP

27.10.2013

Dear Sir / Madam,

NO, it is not right to form a new Partnership Firm without the existing partners dissolving the existing firm and settling the share of the deceased partner. The mutation of the immoveable property should be challenged.

Regards,

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Answered on 10/27/13, 3:11 am


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