Legal Question in Credit and Debt Law in India

Sir,

I and my partner took a loan from a relative of Rs.5,00,000/- but due to bad business conditions we could not pay it back. Now my relative has filed a case against me individual demanding the money with interest. On asking why is the case only on me I was given the answer that I signed the cheque so only I am responsible for paying the debts and my partner who is liable to pay the debt according to his share is set free.

Is it possible that only the person who signes the cheque is only responsible to pay the cheque. The cheque was issues by our partnership firm account and any one was the signing authority.


Asked on 12/26/15, 12:38 am

1 Answer from Attorneys
Fca Prashant Chavan Expert Edge LLP

26.12.2015

Dear Sir / Madam,

No, in this situation both the partners are equally liable to settle the debt in their respective profit and loss sharing ratio.

Regards,

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Answered on 12/26/15, 1:15 am


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