My Partner refuses to pay Emi of bank
3 years ago
Due to Covid, our partnership firm, which mainly dealt in food item distributorship faced huge amount of loss. There are two partners in the firm including myself sharing a 50:50 profit/loss ratio which is mentioned in our partnership deed. Our firm had taken unsecured loan from 3 banks in the year 2019. The firm is now unable to pay its dues from current profits. I came up with a solution to pay our dues from our personal accounts in the proportion mentioned in our deed i.e 50:50. But my partner refuses to pay his share. I want to dissolve this firm as the business is going nowhere and pay my share of the dues from my personal account i.e 50% of what the firm owes to the banks. But my partner is making excuses, that he doesn't have money, he is a retired senior citizen etc. My question is can the bank dump my partners liabilities on me? can the bank force me to pay off 100% of what the firm owes to them? Please advice what steps can I take? My partner is not willing to sit for discussion even. He just wants to escape from his liabilities.
On the basis of records maintained by you like electronic evidence you may file a money recovery suit and teach him a lesson.
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Ayantika Mondal @ Prime Legal
Responded 3 years ago
The liability of partners is joint and several, that is the bank can recover from any one of you or both of you and certainly any pensionary benefits of an employee are not attachable bank will recover everything from you. After making payment to the bank you have a right to recover is proportional liability from him under Partnership Act and Indian Contract Act, 1972.
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The risk of partners is joint, that is the bank can recuperate from any of you or both of you and absolutely any pensionary advantages of a representative are not appendable bank will recuperate everything from you. Subsequent to causing installment to the bank you to reserve an option to recuperate is corresponding obligation from him under Partnership Act and Indian Contract Act, 1972.
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