• Retired partner does not fulfil liability to sign for removing her name from property

I am running a hardware shop which was a partnership firm(not registered) with my cousin's wife(bhabhi)commenced by buying a premises from a builder in 2000. The said partner was retired in 2003. Since Partnership was not registered the deed of dissolution was also on a stamp paper of Rs 50/- only. The retiring partner had taken compensation for the premises and had given in writing that she had received full compensation and I am now(after 2003) is sole owner of the shop, business and the premises. 
Now I want to sell the shop with premises but the retiring partner who now lives in US has come on visit but refused to sign the agreement for registering the Deed for the premises. She is brining in other Fake ancestral disputes as guise not to sign. What are my legal options before she moves back to US?
Asked 5 years ago in Property Law
Religion: Hindu

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13 Answers

The premises was bought by you jointly. Now she entered into a partnership agreement with you but later on retired. A deed also exists as well as a deed of dissolution. File a declaratory suit and a permanent injunction application against her based upin these documents.

Rahul Mishra
Advocate, Lucknow
14114 Answers
65 Consultations

Yes that deed is very important and is a significant piece of evidence. The dispute between your cousin and you is the reason for thw current dispute. State this in the present case. 

File a criminal  complaint against these people for fraud criminal breach of trust abd cheating.

Rahul Mishra
Advocate, Lucknow
14114 Answers
65 Consultations

If you have documentary evidences to prove that on retirement from this partnership business she was paid all her shares including the compensation for the immovable property.

However if the property still lies on the company's name her consent  or a joint registered transfer deed is to be executed for alienating the property.

You may first issue a legal notice demanding her to cooperate for the sale of the property or to execute a relinquishment deed to enable you to sell the proeprty, failing which you can file a suit for declaration of title on your name on the basis of the dissolution of the firm and the devolvement of the property on your name consequent upon.

 

T Kalaiselvan
Advocate, Vellore
89976 Answers
2492 Consultations

The dissolution of partnership firm on an unregistered deed can be used as an evidence to prove the dissolution of the firm before court of law though it cannot be enforced.

You may issue a legal notice as suggested in my previous post  and follow it by filing a suit as suggested 

You may have to be present physically or entrust the task of prosecuting the case to a reliable person in India to  represent you in your absence before court of law on the basis of your power of attorney agent

T Kalaiselvan
Advocate, Vellore
89976 Answers
2492 Consultations

1) file case of cheating against her under section 420 of IPC as she has received full compensation but is refusing to register deed of retirement from partnership 

Ajay Sethi
Advocate, Mumbai
99775 Answers
8145 Consultations

deed of retirement should have been registered 

 

you should it with registrar of firm to prove that sister in law has retired as partner from firm 

Ajay Sethi
Advocate, Mumbai
99775 Answers
8145 Consultations

Dear Sir/ Madam

The stamp paper of deed of retirement holds a high evidentiary value as you don't possess any other documents to support the retirement of the partner's claim. In order to obtain the consent, you can send a legal notice to her o execute a relinquishment deed to enable you to sell the property. if she fails to reply, you can file a declaratory suit and a permanent injunction application against her.

Anik Miu
Advocate, Bangalore
11014 Answers
125 Consultations

her passport would not be impounded 

Ajay Sethi
Advocate, Mumbai
99775 Answers
8145 Consultations

As the partnership was not registered the property in all probability is in joint ownership. You have to file suit for declaration of ownership with the help of retirement deed against the retired partner. There is no shortcut. For that purpose it is not necessary that the defendant should be in India. A suit for property in India can be filed against nri also with the same effect as filed against resident.

Ravi Shinde
Advocate, Hyderabad
5125 Answers
42 Consultations

She cannot be restrain from travelling abroad unless there is non-bailable criminal complaint is pending against her. The remedy is as stated earlier, declaration suit. There is no other solution. Retirement deed on 50 Rs. stamp is valid and enforceable document.

Ravi Shinde
Advocate, Hyderabad
5125 Answers
42 Consultations

Impounding of passport is not granted in cases of civil nature coz, civil remedy can be very much pursued against nri. 

Ravi Shinde
Advocate, Hyderabad
5125 Answers
42 Consultations

You cannot make a prayer to court to court to impound passport.

Even court do not have powers to impound passport.

The passport authorities only can initiate action to impound passport under section 10 of the passport acts for the reasons mentioned therein.

If she is running back to US then you can proceed with the pending case as per law.  

T Kalaiselvan
Advocate, Vellore
89976 Answers
2492 Consultations

- Since , she has already given her statement in writing for releasing her share in the partnership business , and further executed dissolution of firm , then legally she cannot refuse to give her consent , and restrict you for selling that property . 

- Hence, you have your right to sell that premises , and if she creates hindrance then file a Permanent Injunction suit against her with the address of India for getting order in your favour . 

Mohammed Shahzad
Advocate, Delhi
15814 Answers
242 Consultations

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