Legal Question in Business Law in India

case against our partnership firm

a government enterprise has filled a case for recovery against our company. our company is a partnership firm. the case is against me and my dad since we both are the only partners in our company. i need you advice, i need to know if we both are unable to pay the recovery amount, will this libilaty move to my son. he is not a member of our company, but is there any chance that he will be asked for the recovery money incase we dont have the money to settle the recovery?

your advice will be very helpful.

thanks

ankush wadhwa


Asked on 1/15/07, 10:21 pm

2 Answers from Attorneys
sheena VC legalalia

Re: case against our partnership firm

No, since the case is against the company and your son is not a member they can't move against your son.

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Answered on 1/16/07, 4:57 am
Rahul Mishra Yolmo Mishra & Associates, Legal Advisors & Advocates

Re: case against our partnership firm

The debts of a partnership firm is to be met by the partners (in your case, you and your dad) through the attachment and sale of personal property in case the firm fails to pay the same. Therefore, it is advised that you try to contest the recovery case filed in Court by the government enterprise. If you do not contest the case the Court might, depending on its merit, pass an order against you to recover the debt. However, your son will not be liable for the recovery amount as he is not a partner of the firm.

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Answered on 1/16/07, 10:28 am


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