• Will a retired partner need to sign a sale deed of a land belonging to the partnership firm?

If a partnership firm decides to sell its immovable property such as land, will the retired partners who were originally partners and had signed the purchase deed while purchasing the concerned immovable property 30 years ago need to be present and sign the sale deed which is to be executed now?
Asked 5 years ago in Business Law

First answer received in 10 minutes.

Lawyers are available now to answer your questions.

16 Answers

1) the retired partners are not required to sign the sale deed 

 

2) it has to be signed by firm and authorised signatories of the firm 

Ajay Sethi
Advocate, Mumbai
99775 Answers
8145 Consultations

Hi

In law,  a Partnership Firm is not a distinct legal entity and, therefore, the partners of firm are co-owners of the property of the firm.

Under the partnership act,  the Dissolution of Partnership firm is different from Retirement of one of partners. 

So, in this case, it is appears that some of the partners have retired and the firm continued in existence with other partners and probably may be with addition of new partners.

So, it is important in law, to have the Deed of Retirement  duly registered after payment of stamp duty if it involves title, ownership and interests of a partner in any immovable asset held by partnership firm and the transfer of title, ownership and interests are properly recorded as per provisions of Transfer of Property Act.

So, please check whether of the Deed of Retirement amongst erstwhile partners are duly registered at Sub-Registrar office. 

If the said deed of retirement of earlier partners,  has not been registered, then the proper way to sell the immovable asset is by way of affixing the signatures of the original retired partners and all of the existing partners.

Hope this information is useful

 

 

 

 

 

Rajgopalan Sripathi
Advocate, Hyderabad
2173 Answers
394 Consultations

1. If the retired partner signed the title deed in the capacity of the partner of the firm only then while selling after their retirement their signature is no more required.

2. The present partners in unison can sell the property lawfully .

3. o stop looking for retired partners and proceed with the job with present partners. 

Devajyoti Barman
Advocate, Kolkata
23653 Answers
537 Consultations

 No retired partner doesn't have any locus to sign the same

Prashant Nayak
Advocate, Mumbai
34514 Answers
249 Consultations

If firm still exits with other partners and retired partner has received his share if profit on retirement than no signatures require. Rest partners can sell the property.

Hope property is purchased in the name of Firm.

Yogendra Singh Rajawat
Advocate, Jaipur
23079 Answers
31 Consultations

If you have submit the retirement of partner with the registered of the company. And all current partner's details are available as per the partnership norm currently with the Registrar of Company than no need to NOC or help of retired partner.

Ganesh Kadam
Advocate, Pune
13008 Answers
267 Consultations

The property was bought by the partners on behalf of the company and not in individual names.

The property being the company's property, the partners cannot claim any right over it.

If a partner is retiring, then there is another partner to replace his place, therefore if the company decides to sell the property by following the procedures as mentioned in the articles of association, it can go ahead with the current partners, there is no need for the retiring partner to execute the sale deed jointly along with the current partners.

 

T Kalaiselvan
Advocate, Vellore
89977 Answers
2492 Consultations

No, the retired partner is not required to sign the Sale Deed.

The sale deed has to be signed by an authorized representative of the PSF.

S Srinivasa Prasad
Advocate, Hyderabad
2876 Answers
9 Consultations

1. The signature of retired partners are not required on sale deed only the current partners need to sign the sale deed.

Shubham Jhajharia
Advocate, Ahmedabad
25513 Answers
179 Consultations

No,

It would be signed by the representative of the firm

Rahul Jatain
Advocate, Rohtak
5365 Answers
4 Consultations

retired partners are not required to sign the sale deed.

present partners should have signed the sale deed executed in the name of the partnership firm. 

Mohammed Mujeeb
Advocate, Hyderabad
19325 Answers
32 Consultations

1. Retirement of a partner from the firm relieves him from all his liabilities.

2. The sale deed has to be executed by the existing partners, not the retired partner who signed the sale deed as a buyer.

Ashish Davessar
Advocate, Jaipur
30840 Answers
981 Consultations

Dear Sir,

The retired partner is not required to sign the sale deed now. 

Ganesh Singh
Advocate, New Delhi
7169 Answers
16 Consultations

1. Partner who has retired by following due procedures of law CANNOT sign on ANY document (whichsoever) of the partnership firm.  It would constitute prosecutable offences.

2. Imagine If said retired partner was dead then who would sign.  

3. IF property is in name of Partnership Firm, THEN ONLY the present partners on record can sign on property related documents.

Hemant Agarwal
Advocate, Mumbai
5612 Answers
25 Consultations

No.

Ramesh Pandey
Advocate, Mumbai
2541 Answers
8 Consultations

No, if property is on name of firm then retired partner is not required to sign the sales deed.

Mohit Kapoor
Advocate, Rohtak
10686 Answers
7 Consultations

Ask a Lawyer

Get legal answers from lawyers in 1 hour. It's quick, easy, and anonymous!
  Ask a lawyer