Legal Question in Banking Law in India

One of our Customer has approached for cash Credit facility in our bank. Which firm is a partnership firm, the firm was registered in the year 2005. There are five partners, subsequently two partners has retired from the firm and joined in another two partners the same was mentioned in partnership deed and relinquishment deed in the year 2006. Which was not updated in Register of firms. We insist the firm to update the same in Register of firms. Now the firm has updated the same in register of firms after five years. we obtained the form A for verification. After scrutinizing the deed borrowing powers and Loan account operations are silent. Again the firm has prepared the partnership amendment deed, stating that borrowing powers and account operations. We insist the customer to update the same in Register of firms but register said they are not updating the same because they are not having provision to update the codicil .
We request you to please clarify, what are the deeds updated in register of firms.
If the said deed is not updated in Register of firms there is nay legal problems.
what is the exact procedure for codicil. Please advise and do the needful.
Thanking you,
J.V.Naveen Kumar

Asked on 12/28/11, 8:54 am

2 Answers from Attorneys

J. Radhakrishnan independent Practice

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for operations in bank account and borrowing powers it is the partnership letter which the bank gets from the partners while sanctioning/enhancing/renewing facilities. The Register of firms have no provision to contain t he rights and liabilities and powers of partners. Better go by your bank's book of instructions and circulars in the matter of operation by partnership firms

Answered on 1/02/12, 6:37 pm

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