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Q. Breach of Agreement On settlement from partnership exit

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Sindhu Suresh

posted 1 year ago

Q.Breach of Agreement On settlement from partnership exit
Dear Sir/Madam

My neighbour and his friend had a running pre-school in partnership. After 2 years he had closed down the school and approached us for buying it. After lot of thinking we thought instead of buying we will reopen and work as partners. So we invested 10 Lakhs. So we three partner resumed the pre-school. There was an existing registered Trust deed of school which was already registered as non-profitable organisation. So after passing a resolution through a Trust meet I was added as Trustee with Treasurer responsibility. But on profit sharing and investment we had only a separate MOU and it was agreed through emails among three of us. But it was never registered or signed in a stamp paper. I was also added as a joint account operating person in Bank as joint signatory of Trust account of school.

We Successfully grew from 0 to 75 children. But from day one we had misunderstanding in running the operations of school. After tolerating for 3 years I decided to exit. Then my neighbour realised without me school will shut down and used all tactics to retain me. Finally I sent a resignation email with a condition that I will exit from Trust after my settlement of investment. Neighbour raised points like I have to sign a new MOU that I will not open new school. As it was never a condition signed any where I did not agree.

After lot of discussion the partners agreed to pay back 6L against my investment of 10L vide post dated cheques in a week. This was documented in a MOU and agreed on mail and about to be signed. But after a week they changed their mind and came back with new thought such that since school is registered as non profitable Trust they don’t have to pay back any. Also they two (partners) sent a mail that my resignation is accepted and passed a resolution to remove me from Trust.

This new resolution was produced in bank and they got me removed from bank’s joint signing authority from School Trust operating account.

This was a clear breach of what they agreed. But I have all evidences of profit sharing including bank statement. I also have audio recording of all the agreements made in recent meeting, Also I see many of the whatasp messages they sent have been deleted by them to remove evidence.

Also Bank is now saying they removed me from account based on Trust deed and they don’t have any rule verify / intimate me before removing from signatory of Trust operating account as the Trust deed is empowering them from removing me as Trustee and bank has to only see the Trustee resolution document to remove or add any one.

Kindly advice how to proceed on this with my partners. Also please suggest if banks stand is correct one.

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Suneel Moudgil

Experience: 16 Year(s)

Responded 1 year ago

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A. ) the bank is correct,
you do not take legal advice when it was most needed,
now any advice can be given after going thoroughly the documents since you entered in the TRUST and till your resignation and maybe till today,
a detailed discussion after going through documents will be fructify for you,

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Kishan Dutt Kalaskar Retired Judge

Experience: 34 Year(s)

Responded 1 year ago

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A. ) Dear Sir,
The description given by you is so lengthy, please make it short and re-submit, as experts have no time to spare as this is free and charity work.

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