Partnership firm - partners fraud
7 months ago
We have started a partnership firm with 5 no’s of partners but we have not registered in the MCA site.
While start-up we have been together for 3 years and after that, I joined another company on the basis of business growth of over partnership firm within our mutual understanding.
Till date, I have given approx. more than 10 crores of business to our partnership firm without taking any single rupee from our firm.
We have invested our yearly profit in the company to increase company business and now my shares value is approx. 40 lakh.
We all partners had taken 2 lakh rupees in last 2 years in Diwali period.
They started a new Pvt. Ltd. Company 4 years ago with mutual stating that we add you when you come.
Now I left my company and joined a partnership firm, but other partners do not want me there.
The Pvt. Company has the same business as our partnership firm. Also, they have shifted all partnership firm assets to their Pvt. Company.
Also, I got information that they have withdrawn 25 lakh rupees each in the last 2 years without intimating me. And now I am approaching them to give me money of 25 lakhs but they are saying that our firm is in loss and no balance available in the company account.
They are saying that we can dissolve this firm and take a share by selling assets.
Can I get my actual share value from other partners?
What should I do, pls reply.
Partners of a partnership firm is governed by the contents of the Deed of Partnership executed between the partners stating therein all the terms including initial investment of capital in the business by the respective partners and the ratio of sharing the profit and loss of the firm by the partners apart from others obligations and responsibilities of the partners. So, go through the terms/points in the deed of partnership and react accordingly with your partner. If the partnership agreement doesn't provide a clause of the arbitration to resolve the disputes or differences between the partners as per the provision of the Arbitration and Conciliation Act, 1996, then you may file a suit against your partner for criminal breach of trust u/s.406 IPC and also for cheating u/s.420 IPC for appropriate relief in the matter. Consult with an Advocate for guidance and steps.
would like to inform you that the law governing partnership firms in India is the Indian Partnership Act, 1932. According to Section 69 of the Act, it is not mandatory to register a partnership firm with the Ministry of Corporate Affairs (MCA). However, it is always advisable to register a partnership firm to enjoy certain legal benefits and protection.
In case of a dispute or disagreement among the partners, Section 44 of the Indian Partnership Act provides that any partner may serve a notice in writing to the other partners expressing his intention to dissolve the firm. Alternatively, if the partnership deed contains a provision for dissolution, it can be dissolved in accordance with such provision.
Regarding your situation, it is important to assess the terms of the partnership deed, if any, to determine the rights and responsibilities of each partner. If the partnership deed is silent about the withdrawal of profits by individual partners, it may be necessary to examine the accounts and financial records of the firm to establish whether any wrongful withdrawal of funds has taken place.
If you feel that you have not received your fair share of the profits from the partnership firm, you may have a legal claim against the other partners. In such cases, it is advisable to consult with a lawyer who specializes in partnership law to discuss the specific details of your case and explore the available legal options.
Furthermore, if you believe that the assets of the partnership firm have been transferred to the private limited company without your consent or in violation of the partnership agreement, you may have grounds to challenge the transfer and seek appropriate legal remedies.
Thank you.
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