How to rectify mistakes in partnership deed
3 years ago
Dear Experts,
Requesting your suggestion on the following :
State: Telangana.
Agriculture land is purchased by A & B and together they have decided to start a firm and executed a partnership deed and as part of the deed they have provided the land to firm and applied for NALA and started running the firm. Now one of the partner let's say A is willing sell of his share to B.
One issue while executing the partnership deed is that it is registered before the sale deed of the land.
Let's say A&B have paid for land in May and sale deed registration in the name of A&B in July.
Partnership deed and land provided to firm is registered in the month of June.
Now, one of the partner wants to leave the firm - What are the implications of still using this partnership deed? Is it Void ?
How to rectify now so that there will be not be any issues from "A" in the future.
Ayantika Mondal @ Prime Legal
Responded 3 years ago
Yes the previous partnership deed between the two partners A and B would be considered as void, since both of them cease to be partners. Also, once after the dissolution of such partnership there would be distribution of assets and liabilities of both the parties and then A may continue to run the business as a sole proprietor.
Since one partner is not willing to continue the partnership, the partnership would dissolve and thus, the deed would be void, and both the partners have to go through the dissolution process and distributing the assets and liabilities into the decided ratio after this A could continue the business as a sole proprietor.
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