Property given on rent to partnership firm
Property was given on rent for 3 years to a partnership firm and rent agreement was signed and registered. Now the partnership firm is dissolved- do we need to cancel the rent agreement and enter into a fresh rent agreement or just a letter confirming that the partnership firm has been dissolved and all the liabilities will be carried out by remaining partners
Asked in Property Law from Mumbai, Maharashtra
1) firm is no loner in existence . terminate the agreement . take vacant possession of the premises
2) enter into fresh rental agreement with the parties
The firm which formed a resolution shall have taken decision about the continuation of the tenancy and meeting the liabilities of the firm accordingly.
Whether the firm has officially informed you about the dissolution of the partnership firm, if so whether it has intimated about the continuation or termination of rental agreement and also about the future rental payments.
Until you have not got any official confirmation about the development you may wait and watch and afterwards you can initiate proper legal action as is required by law under the prevailing circumstances.
Partners can be made liable only to the extent mentioned in the partnership deed unless the deed of dissolution prescribes a liability in addition to what the partnership deed states. On the dissolution of the partnership firm the remaining partners do not ipso facto become liable for the debts of partnership. You may, subject to what the dissolution deed prescribes, terminate the lease through a legal notice.