Yes, the aggrieved partner can very well put the bank on notice to stop operations in the account forthwith. Serve a written notice o the bank either in person or by regd. post with A. D. mentioning the misuse of the facility and ask the bank to freeze the account till the dispute among the partners is settled.
Bank operation under Partnership Act
A registered firm has 3 partners. The First partner is managing partner. The clause on Bank accounts is as under: "Partners may open Bank accounts with Nationalised/Scheduled banks in the name of the firm and will be operated by the First partner as Managing Partner for business purposes." This facility is being misused by the First partner in collusion with Second Partner. Can the Third Partner write to the bank to suspend operations of the bank till the issues are amicably settled among the partners? As per partnership deed disputes among partners are to be settled by arbitration. I will be thankful if you could clarify this point.
Asked 2 years ago in Civil Law
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8 Answers
Request bank to freeze the bank account on account of dispute between partners
invoke arbitration clause in partnership deed
Ordinarily, one partner cannot, in the absence of a clause to the contrary in the partnership deed, freeze the bank accounts. A suit for mandatory injunction will have to be filed in the civil court by the partner to freeze the said account.
you can approach court with a suit for permanent injunction against all the partners who have been alleged to have embezzled the company's funds restraining them from operating the bank account until the disposal of the suit and also can seek a direction to the bank to freeze the account till a decision is arrived by court in this regard.
Dear Client,
Yes you can made a representation in bank through writing or directly by telling them to suspend your operation temporarily by telling them about the misuse of power done by the managing partner and also attach some proofs related to your problem. You can also go for negations among partners to resolve the matter or use Arbitration as it is written in the Partnership deed.
Thank You.
Hi, You can write a letter to the Bank for the suspension of the operation of the Account. If they not agreed for the same then you have to file a suit with limited prayer for suspension of the operation of the Bank Account.
Dear Sir,
Yes, third partner who is having interest in the business and investments can request the banker to stop all transactions which are being carried by first partner in the name of partnership firm if bank refuse then you can approach Civil Court to get an order.
- In case of any violation of the banking transaction by the partners, the third partner can loge an FIR against them for the offence of cheating and misappropriation of the fund .
- Further, he can also inform the bank for freezing the account as well.
- If nor response by the police , then the third partner can approach the court as well.
Yes the arbitration is the way out as per above facts
