Dissolution of Partnership and Immovable Property

In this article, I examine the treatment of immovable property of a partnership firm, in view of various dissolution scenarios.

Statutory Framework

Section 14 of the Partnership Act, 1932 (“Partnership Act”) talks of the property of the firm, which include property (a) brought in by the partners, and (b) acquired by or for the firm, for its business (including the goodwill of the business). In this regard, unless stated otherwise, any property acquired from funds of the firm shall be deemed to have been acquired for the firm.

Section 48 of the Partnership Act talks of settlement of accounts upon dissolution of the firm. For the purposes of this article, sub-section (b) talks of assets of the firm, and that upon paying (i) debts of the firm, (ii) the partners, (what they are due for advances as distinguished from capital, and on account of capital. Thereafter, the residue will be divided among the partners in proportion to the profit sharing ratio.

Read More: https://tlegal.com/blog-details/dissolution-of-partnership-and-immovable-property

Comments

Post a Comment

Popular posts from this blog

ANALYSIS OF CONCEPT OF MATERIALITY

In recent years, India has witnessed a significant surge in investments across various sectors, marking a promising trend for the country's economic growth.1 This increase in investments can be attributed to several factors, including the Indian government's proactive efforts to improve the ease of doing business and implement investor-friendly policies such as the Goods and Services Tax Act, 2017 which has simplified the tax structure, making it more transparent and investor-friendly. Additionally, the Indian government has introduced amendments to the Insolvency and Bankruptcy Code, 2016 in subsequent years thus streamlining the process of resolving insolvency issues and enhancing creditor rights. The Government has relaxed foreign investment guidelines which in turn has promoted foreign direct investment. Additionally, India's burgeoning consumer market driven by the upper middle class, skilled workforce, and a growing appetite for innovation have attracted both domest
Read more

NAVIGATING THE ENIGMA OF STOCK APPRECIATION RIGHTS FOR INDIAN UNLISTED COMPANIES AMIDST THE DARK WATERS OF STATUTORY HUSH

 Stock Appreciation Rights (or “SARs”, as they are more popularly known) have found their way into the board rooms of many companies as a noteworthy model of incentivization. SARs, in layman language, are indicative of a right issued by a company which entitles the right holder to benefit from the appreciation in value of the company on maturity over a fixed period, if any, in cash or in shares or a combination of both. As is the case with any other investor in a company, the entitlement of a SAR beneficiary grows with the growth of the company and likewise, declines with the downward performance of the company. At the threshold, SARs appear to be, and are indeed, a promising win-win model wherein the company can have substantial control over risk exposure and capitalization table while the beneficiary of SARs can get an exit in cash at the market value or corresponding shares of the issuer company or both, as applicable, all of which is relatively less onerous than the conventional
Read more

Exploring Unchartered Territory? – Laws for the Void

  This 2 part series outlines the regulatory regime involving private sector participation in the space sector. This article explores the changes in the regulatory regime and the next one will explore the key challenges faced by private players (both domestic and international) in the Indian space sector.   What can the Indian space sector learn from the Avengers? Besides, the incredible budget and scale, the key takeaway would be - bringing experts together to achieve phenomenal results. We all remember the fascinating back stories, the strength of and the role each member plays to fill an essential need under the able guidance of a strong leader. The moment when the team does come together lights up the screen and assures the audience that all will be well. It isn’t all that different from how one may feel about India’s space journey. To build on this excitement, the Indian space sector needs the support of the regulations, patience from the private sector, and a unified vision from
Read more