I had retired from family partnership business on 31.03.1996. by submitting resignation letter. There was a credit balance in my capital account of Rs 151000/- which was not paid to me instantly. So there was a written Agreement that it would considered a loan to the partnership carrying interest @18% to be added to the above amount at the time of payment. My father, who was the senior partner passed away in 2003, after which my younger brother also a partner remained as sole proprietor. Now can I claim this amount from my younger brother with whom my relationship is strained with property matters after my father passed away. I have no idea whether the partnership business is still running or not since all the workers were paid off and plant and machinery sold off in 2005. He perhaps is continuing the partnership business in books only. Also the partnership Goodwill carries a value and I wish to claim that amount as this is written in the new partnership deed after my exit. I have possession of a audited accounts of the partnership business as on 31.03.1996, a copy of my resignation letter, a certificate from the firm signed by the late senior partner mentioning the amount of my capital balance.The accumulated amount as calculated comes to around Rs 53 Lacs after annual compounding of interest. Under which law can I claim this amount so that he is forced to pay. He has got enough money now running into Crores by recently selling off my father's real estate from which he and my mother tactfully fooling me with manufactured documents.
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your claim is barred by limitation
2) you ought to have filed suit to recover outstanding dues of Rs 151000 with interest as agreed in the written agreement within period of 3 years
3) in the event you file any legal proceedings against your brother you would not get any reliefs from court
1. Once you submit your resingation all your rights and libablities reliwnaishes since that date.
2.Now any amount payable to you was though recoverable through the court of law.
3.DO noe that any money payable to you is to be claimed through court of law within next 3 years only.
4. SO unless during the last 3 years there is any written acknowledgment form the firm that you have your dues still pending , your legal remedy is time barred and no suit can be filed to claim this.
5. You an not claim share on goodwill also as your relationship with this form extinguished with the date of resignation.
Hello,
I am afraid but the issue that has been raised by you is highly time barred, you will be losing your time and money if you will now raise this claim in the court.
However you can give it a chance by filing a legal notice in this regard to your brother.
Regards
Since my father was the senior partner I can easily show that I had received some cash from my father till April 2003. He passed away on 8th June 2003. After that I had received some cash from my mother to pay off sales tax dues which also I can show that she had paid this against my dues from the firm. For how long can I show cash receipts of small amounts of Rs2000/- to Rs 5000/- to avoid the time barred element? My relationship with my mother is also not good as resides with my brother and totally inclined to him. I am mostly eying the interest which would be substantial. If I acknowledge receipt of Rs 50000/- from the principal outstanding still I am left with Rs 100000/-. Is this idea workable to avoid time barred? Alternatively I can show that intimations were sent and received by someone. There was though a formal system of letter receiving but after my father's death and with ulterior motive to grab property where the business was running my brother didn't follow the system.
if there is any a acknowledgment of liability or payment made in last 3 years then your claim would not be barred by limitation
As told earlier your claim is highly time barred and probably will be dismissed on the ground of limitation, and filing of the case will be nothing but waste of money and time.
Regards
If you have evidence for the loan agreement yo can first issue a legal demand notice asking your brother to repay the same with interest and you can disclose the calculate amount of loan and the the interest thereon.
Actually the claim is barred by imitation at this stage but if he commits to payment then it will be renewed automatically.
Any step you may take should substantially prove that all your claims and the last transaction in this regard was within three years preceding the date of initiating the legal course of action i.e., legal notice and any recovery case subsequently.