• Husband bankrupt and forcing to enter into partnership

My husband had a partnership business of distribution; cc limit of 75lakhs, he is now bankrupt and litigation is going on; our liability would be around 35-40 lakhs since I am the Guarantor. Now he is planning to continue the same business under a different partnership and wants to make me as a partner. Is it alright that I can become partner, since he has already lost everything.
 I have a daughter studying in school and a widow mother. I am the only bread winner in the family. I had already lent him around 10lakhs of rupees and paying instalments for the same. All the household expenses and everyone's personal expenses are met from my salary. I hardly have any savings, since everything has been utlised by him in the name of business
Asked 1 year ago in Civil Law from Mumbai, Maharashtra
1) under no circumstances become aparter with your husband . 

2) you are already a guarantor in his earlier business and have liability of 40 lakhs 

3)further you have daughter and widowed mother to look after 

4) in addition you are running the household 

5) ask your husband to forget business and take a job 
Ajay Sethi
Advocate, Mumbai
23351 Answers
1221 Consultations
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1) file for divorce on grounds of mental cruelty 

2) you have no future with husband who is chain smoker ,drunkard 

3) refuse to give any further money . 
Ajay Sethi
Advocate, Mumbai
23351 Answers
1221 Consultations
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Hello,
1) The fact that your husband is bankrupt does not disqualify  him from floating a new firm and your joining the firm as a partner, provided your husband can show availability of funds.

2) If your question pertains to the fact whether it is financially a viable option as the entire family runs on your earning you need to place conditions in the partnership agreement that will keep you absolved and indemnified from financial implications and that you will be entitled to profits in equal shares.

S J Mathew
Advocate, Mumbai
1953 Answers
65 Consultations
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1. It's your personal crisis and hence you have to take a call.
2. Since no legal dispute has started as of now I would suggest you not to think on the line of divorce.
3. Refuse to lend him any money. If he fend for himself may be then he will learn not to incur loss in the business venture.
Devajyoti Barman
Advocate, Kolkata
5246 Answers
54 Consultations
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Hi, from the narration it is better you can stay away form the entering into the partnership firm and you have to suffer unnecessary for no fault of you. 
Pradeep Bharathipura
Advocate, Bangalore
4105 Answers
133 Consultations
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1. The liability of a guarantor is co-extensive with that of the borrower. So you will be liable for his debts if he is unable to repay the same. Be that as it may, the pendency of litigation does not prevent you from acceding to his demand of being inducted as a partner in his new business.

2. You are at liberty to file for divorce on the ground of physical and mental cruelty by him, but even divorce will not abrogate or reduce your liability for his those debts in respect of which you stood as a guarantor. 

3. Keeping divorce papers will also not mitigate your liability. If he does not sign the divorce papers you cannot file for mutual divorce. 

4. You may not want to be made further liable for his debts. 
Ashish Davessar
Advocate, Jaipur
18183 Answers
449 Consultations
5.0 on 5.0
 Now he is planning to continue the same business under a different partnership and wants to make me as a partner. Is it alright that I can become partner, since he has already lost everything.

With your commitments and burden to take care of the family affairs including children education and mother's health bill, it may not be advisable to enter into partnership with him or to invest anymore in his new company, especially when he stands bankrupted  in the previous business. This is an indication about his  incapability to successfully run a business.  Therefore in my opinion, it may not be a wise decision to invest once more into his business and get your hands torched again.
T Kalaiselvan
Advocate, Vellore
14151 Answers
127 Consultations
5.0 on 5.0
Now he even threatens to end his life. I am afraid that incase he does something to himself, whether i will be liable for all his losses and i even don't know how much.; since he has also mortgaged our home which is the only asset we have

Dont get bogged down by such emotional or sentimental dramas.  If you have decided to not to tolerate his attitude or habits anymore, better stay away fro him or even you can take divorce from him so that you shall not be made liable (even emotionally) for his loans and liabilities.  






My inlaws are threatening me emotionally and sentimental values; that I should not leave the family, take care of my husband. I am doing everything, but how long?

Your in laws are not fighting for their son's well being or in the interest of saving your marriage, it is because of their insecurity feeling once you leave the house by divorcing him.  This sentimental drama may be to garness permanent financial support to them because their sons have failed to take care of them instead one son is extracting money from them. Therefore this sympathy is with selfish motivation alone, hence better do not budge to their pressures of any kind.





Is it possible that I take a divorce and keep the divorce papers with me, so that in worse situation, I can prove that I dont have any relation with my husband and in-laws

Yes, why not?.  You can very well divorce him and secure the judgement copy in your possession.
T Kalaiselvan
Advocate, Vellore
14151 Answers
127 Consultations
5.0 on 5.0

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