Legal Question in Business Law in India

Hi,

Lets say there are three equal partners in a partnership firm defined by the partnership deed to hold 33.33%, 33.33% & 33.34% in company. Over the dues course of time one of the partners, introduces some capital that is more than that of other partner's share. e.g Partner A has introduced a capital of 10 lacs and other two partners hold a capital of 5 lacs each in the firm. Firm also owes credit limit to a bank against property. There are certain Payable outstandings as well to Sundry creditors. What happens in case the firm is dissolved and decides to shut shop. I understand its the responsibility of the business, and not businessman, to pay the oustandings. The business can pay for all outstandings except partner capital. The big question here is that are the "lesser" partners liable to pay the "greater" partner in case business is not able to pay back the Capital. Are the liabilities to be shared equally among partners? Remember that partners equal as far as Partnership deeds goes. Its just that one of the partners hold a higher capital.

Thanks in advance.

Harjot Singh


Asked on 9/06/11, 10:26 pm

1 Answer from Attorneys
RAJIV GUPTA (Cell: +91 9811284735) [email protected]

in case the liabilities and profit sharing is equal, the partners may be equally liable for the debt irrespective of the fact that one of the partners has put in more money or assets.

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Answered on 9/08/11, 4:47 am


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