01 May 2011
Respected Experts If a Partnership deed of a running partnership business is lost & no copy of such deed exist then what to do - does the Partnership business is automatically desolve - again that deed was registered through Notary Public, but not registered under partnership act then such notary can help us in this regard or not Thanks Debashis Mandal
As per section 4 of Indian Partnership Act, 1932, 'partnership' is the relation between persons who have agreed to share the profits of a business carried on by all or any one of them acting for all.
Indian Partnership Act, 1932 Section 18 states that a partner is an agent for doing the business of the firm and the partnership firm will not be treated as legal entity.
Hence, a firm which has entered into deed got notorized have no legal status for any proceedings, it is the sole discretion of partners either to continue the same business by re-drafting the deed, else restart with a new deed with new firm name by getting p-deed registered
Dissolution of a firm without intervention of Court can be (a) By agreement (section 40) (b) Compulsory dissolution in case of insolvency (section 41) (c) Dissolution on happening of certain contingency (section 42) (d) By notice if partnership is at will (section 43).A firm can also be dissolved by Court u/s 44.
first of all it is not compulsory to register the partnership business under partnership act to carry on the business. however, it is highly advisable to get the deed registered which u had done. since the deed is lost, u should approach the notary for help in this regard. if the notary is unable to get u a copy of the deed, u may have to get the deed registered again. loss of deed does not result in dissolution.
CAclubindia
