Merger of proprietorship concern to partnership

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MANISH MITTAL (Querist)
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13 June 2009 suppose, Mr. X was running a proprietorship concern in the name of M/s X & co and hold a immovable property in the name of firm in title deed. Later on he became a partner of another partnership firm and give all fixed and current assets to partnership firm with an clasue that immovable property will be continue in the name of Mr. X and no title will be transfer in the name of firm. it is describe in partnership deed. The partnership firm have applied FI for loan but bank is not agree this condition that it is contradication to law and not lawfull. is bank contention is right or no.

Late CA Sampat Jain

Late CA Sampat Jain (Expert)
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13 June 2009 Whenever a business is taken over by another firm , the assets and liabilities to be taken over is determined by the agreement.IT IS MATTER OF AGREEMENT BETWEEN THE PARTIES........NO ILLEGALITY.