If the partnership firm was started by grandfather and uncle then the partnership is dissolved as soon as one of the partner passes away and then as per section 37 of the partnership act the surviving partner is liable to settle the dues as per the will. Though limitation act will come into play but still you an take chance by filing a case in the civil court.
Partnership firm
My grandfather and uncle started buissness through registered partnership firm in 1976.they took industrial land on lease 99 years from gidc (goverment) .my grand father died before 4 years and before death he excuted registered will in favour of my father for his 50 percent share in firm. My uncle agreed 25 percent share instead of 50 percent in firm before 2 years agreement made on stamp paper and notorized but not registered. The real value of firm is in land. Now my uncle is not oblizing by statin article 37 and limitation act 106.
Asked 6 years ago in Business Law
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4 Answers
Apply for probate of grand father will
2) as per will your father has 50 per cent share in partnership firm
3) there must be clause in partnership deed regarding death of partner
4) When a partner dies, subject to any contract to the contrary, partnership is dissolved. Section 42 of the Indian Partnership Act, 1932 (“Act”) provides for dissolution of partnership on occurrence of certain contingencies which includes ‘death of the partner’ as one of those contingencies. Plain reading of the Section 42 would show that, subject to the contract between the partners, a firm stands dissolved by death of a partner. However, in cases where the terms of the partnership deed are silent on continuation of partnership’s business, a contract to continue the partnership after the death of a partner may be implied from the conduct of the parties
4) where it is evident that such an intention was present, the nominee or legal representative of the deceased partner can take the place of deceased partner and business of the firm can be continued with the presumption that the partnership was never dissolved on the death of that partner.
5) if however there were only 2 partners in firm then firm would be dissolved on death of grand father
Your uncle is not to take any decision in this matter when through the will executed by your grandfather, his entire stake in this partnership firm was to devolve upon your father upon his death. The agreement made contrary to this will is a nullity and cannot override this will. File a suit for seeking 50% stake/share in this land and the other assets held by the Firm.
If your uncle is not cooperating with your father, then your father may enforce the Will which is in his favor.
Your uncle to be impleaded in the probate of will case as a respondent.
once the will is probated then your uncle has to obey the court order or else he can be termed to contempt the court.
Let him quote any rules or regulations, your father is entitled to the bequest made in the will, he can claim his rights.
