Division Of Partnership Property
Apartnership is a relationship between people to carry on a business venture and share the profits and losses arising from it
. The property of a partnership firm consists of assets, moveable and immoveable, brought in by any or all the partners. A partnership is governed by the provisions of the Indian Contract Act.
Anugraha Builders provides
premium villas in Bangalore,
Luxury villas in Bangalore, Villas for sale Bangalore and independent house Bangalore at competitive prices by the builders in Bangalore / developers in Bangalore.
A partnership firm is not a legal entity. A partner is not entitled to transfer his interests to a third person so as to substitute him in his place. The legal relationship of a partnership is based on an agreement between people to share the profits of a business carried on by all, or any of them acting for all.
In case a property is bought by a firm, it vests in all the partners of the firm and not in the firm. This is because the firm has no separate legal existence. There can be no purchase or sale of property by a firm without the names of partners. Partners may give a power of attorney to certain partners to undertake such transfers of purchase and sale of property. On dissolution of a firm, the partnership property may be divided among the partners. This does not amount to transfer of property.
It is not necessary that the partnership should own and use its own partnership property. It can also use property owned by others for the purpose of its business. Such a property would become partnership property only if there is an agreement, express or implied, that the property under the agreement of partnership to be treated as partnership property. Therefore, for a property to become property of a firm it must have been brought into the stock of the firm by the partners originally when the firm was formed or subsequently acquired by purchase or otherwise in the course of the business of the firm. A partner has no rights to enforce a partition of the partnership property.
Since a firm has no legal existence, the partnership property will vest in all the partners and in that sense every partner has an interest in the property of the partnership. During the subsistence of the partnership, no partner can deal with any portion of the property as his own. Nor can he assign his interests in a specific item of the partnership property to any one else. A property belonging to a person, in the absence of an agreement to the contrary, does not become the property of the partnership merely because it is used for the business of the partnership firm. It will become a property of the partnership only if there is an agreement, express or implied, that the property under the agreement of partnership is to be treated as property of the partnership.
A partnership firm may be dissolved under these circumstances:
Agreement between all
partners
Adjudication of all partners or all partners but
one as insolvent
An event which makes it
unlawful for the business
of the firm to be carried
on in partnership
Death of a partner or insolvency
A partnership can also be dissolved by a court. In case a partnership is 'at will' the partnership can be dissolved by any partner or partners giving notice of his intention to dissolve the firm. The partnership agreement may provide whether the firm will be dissolved or not on the happening of certain events. Even if the deed provides that the partnership will not be dissolved on the death or insolvency of a partner, it does not mean that on the death or insolvency of a partner he ceases to have interest in the partnership property. In such a case, after his death, his interest in the partnership property will devolve to his heirs or to his assignees in case of insolvency.
On the dissolution of a partnership, the division of all property, including movable and immoveable property, among the partners does not amount to transfer of property.
The right of a partner in a partnership property crystallizes only when there is a division of properties and assets between partners in the event of a reconstitution of partnership or dissolution of the partnership firm. Till then, no partner has any specific right to any specific property of the firm. Further, in respect of properties owned by a partnership firm, the partners do not have any co-ownership rights whatsoever.
Who gets how much would depend on the terms agreed by the partners in the partnership deed or at the time of dissolution of the partnership firm.
for more details visit
http://www.anugrahabuilders.com/luxuryvillasinbangalore.htmlby: abhiram
Some Special Irctc Provisions Vision Fitness Pt600 Power Tower Reviews-is It Worth Having? Circus Agent: Man With Creative Vision Step Into The Future With Genee Vision 3100 Notice To Implement Income Tax Provisions In Canada- What You Must Know Silicone Hydrogel Colored Contacts For Clear Vision Choosing The Correct Vision Center The Unpleasant Honest Truth Relating To Your Wonderful Nike Lebron 9 Vision Borosil Vision Glass - Decor Your Kitchen Why Students Want To Go To Revision Courses Exam Revision Courses At Exam Confidence Revision Courses With Exam Confidence A Level Revision With Exam Confidence