• How to divide share of land from partnership firm

Hi sir,

We 5 members purchased a land about 5 acrs in 2010. We have constituted a partnership firm and transferred the said land to the firm. We are having the share of partnership as per the extent of land transferred to the firm. Subsequently, the land was developed and divided into plots after getting necessary approvals. And started selling the plots to the buyers and for each registration all five members have to sign the registered documents in favour of the buyers.
50% of the plots have been sold out, however, the amount was not distributed among the partners as per the share written in the partnership deed. Now I wish to come out from the partnership deed with my share of land. How do I proceed in this matter. pl guide me
Asked 15 days ago in Property Law from Hyderabad, Andhra Pradesh
Religion: Hindu

issue notice to other partners for dissolution of partnership and for rendition of accounts [i assume the partnership is partnership at Will]

if they do not co-operate then you will have to file a suit 

Yusuf Rampurawala
Advocate, Mumbai
4051 Answers
17 Consultations

5.0 on 5.0

Dear Cleint,

If it is partnership at WILL than can retire by giving notice. Till now only 50% land has been sold, so you can claim 50% of your share or otherwise agreed by other partners to clear your account. Land is transferred in firm so until no dissolution, land will vest in firm only. You can only demand price of land.

If other partners are no disputing your claim than land can be transferred back by firm.

Yogendra Singh Rajawat
Advocate, Jaipur
10619 Answers
9 Consultations

4.6 on 5.0

the matter of P. Venkateswarlu v. Lakshmi Narshima Rao, AIR 2002 AP 62,

the court held that in case of dissolution of partnership, firm might be dissolved by any

partner giving notice in writing to all the other partners of his intentions to dissolve the

firm.

2) According to section 43 of the Indian Partnership Act, 1932:

1. “Where the partnership is at will the firm may be dissolved by any partner

giving notice to all the other partners of his intention to dissolve the firm.”

2. “The firm is dissolved as form the date mentioned in the notice as the date of

dissolution or, if no date is so mentioned, as from the date of communication of the

notice.”

3)The Supreme Court observed that under section 43(2), notice must contain the date from

which the firm will be dissolved

4)if no notice is issued section 43 of partnership act then partner can also move court seeking dissolution of firm and for taking of accounts under order 20 Rule 15 of CPC

5) in absence of dissolution clause provisions of the Act shall apply,

it cannot be said that a partner of the firm is not entitled to ask for dissolution of the firm

and that only course open him is to retire as provided by another clause in the deed

Ajay Sethi
Advocate, Mumbai
62786 Answers
3828 Consultations

5.0 on 5.0

It will be distributed in the percentage of the partnership firm only. You can walk away by taking your share from the partnership

Prashant Nayak
Advocate, Mumbai
9477 Answers
16 Consultations

4.8 on 5.0

See you have to give notice to your partners that you are exiting the partnership firm if on notice they fail to give your share you have to file a suit for same to seek the share in partnership.firm.

In suit you can call accounts of the firm and other documents on record.

Shubham Jhajharia
Advocate, Ahmedabad
16364 Answers
66 Consultations

5.0 on 5.0

First find out how much amount gathered in way of selling 50% plots. Also find out amount spent for development and necessary approvals. in the profit, demand 1/5 th share. also unsold land, take 1/5th share and move out.

G Suresh
Advocate, Chennai
387 Answers
3 Consultations

4.9 on 5.0

Hello, 

Send a notice to other partners to take your share in the property. 

if other partners are willing to take the partnership forward then they will pay you your share. 

If the y do not respond then take the matter to arbitration if there is an arbitration clause in the partnership deed otherwise file a civil suit in the court. 

 

Regards 

Anilesh Tewari
Advocate, New Delhi
16050 Answers
235 Consultations

5.0 on 5.0

You can retire or resign from the partnership firm by giving a notice to the firm.

You can seek your share in the property along with the profits which the firm achieved so far. 

Partners decide to leave a business for a variety of reasons, including retirement, divorce, disputes and other circumstances. In a general partnership, when a partner decides to leave, the partnership is dissolved. ... A buy-sell agreement allows the remaining partners to buy the ownership rights of the departing partner.

To withdraw from partnership, you need to execute deed of dissolution of Partnership and exit agreement. Unlike, companies and LLP, partners of partnership does not enjoy limited liability and hence it is advisable to execute all documents properly before exiting/withdrawing from partnership.

 

T Kalaiselvan
Advocate, Vellore
52880 Answers
635 Consultations

5.0 on 5.0

Section 43 in The Indian Partnership Act, 1932. (1) Where the partnership is at will, the firm may be dissolved by any partner giving notice in writing to all the other partners of his intention to dissolve the firm.

Mohammed Mujeeb
Advocate, Hyderabad
7888 Answers
3 Consultations

4.5 on 5.0

There are two ways by which you can get your share from the land.

One is by mutual consent of partners they transfer the land equivalent to your share on your name.

Or you have to apply for dissolution of partnership  through court 

Dissolution by Court. If any of thepartners becomes mentally unstable or misbehaves with the otherpartner(s) or doesn't abide by the clauses of the agreement, the otherpartner(s) may file a case in the court to dissolve the firm. But a court candissolve the firm only if it is registered with the registrar of firms

Then the assets will be divided according to

Section 48 in The Indian Partnership Act, 1932

48. Mode of settlement of accounts between partners.—In settling the accounts of a firm after dissolution, the following rules shall, subject to agreement by the partners, be observed:—

            (a) losses, including deficiencies of capital, shall be paid first out of profits, next out of capital, and, lastly, if necessary, by the partners individually in the proportions in which they were entitled to share profits;

            (b) the assets of the firm, including any sums contributed by the partners to make up deficiencies of capital, shall be applied in the following manner and order:—

         (i) in paying the debts of the firm to third parties;

          (ii) in paying to each partner rateably what is due to him from the firm for advances as distinguished from capital;

         (iii) in paying to each partner rateably what is due to him on account of capital; and

         (iv) the residue, if any, shall be divided among the partners in the proportions in which they were entitled to share profits.



 




Mohit Kapoor
Advocate, Rohtak
1314 Answers

5.0 on 5.0

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