A firm has credit balance to be paid to a company. Partners of the firm have deposits given to the company in their individual capacity. Can they request company to adjust the outstanding of the firm to be settld with their deposits?
CA Shailesh Urdhwareshe (Sr. Partner) (95 Points)
23 March 2023A firm has credit balance to be paid to a company. Partners of the firm have deposits given to the company in their individual capacity. Can they request company to adjust the outstanding of the firm to be settld with their deposits?
Ayush
(Executive )
(6755 Points)
Replied 23 March 2023
No, the partners of the firm cannot request the company to adjust the outstanding credit balance of the firm with their individual deposits. The credit balance of the firm and the deposits made by the partners are two separate transactions, and they cannot be set-off against each other without the mutual agreement of both parties.
CA Shailesh Urdhwareshe
(Sr. Partner)
(95 Points)
Replied 24 March 2023
What if they mutually agree for the same? They will mutually sign a document declaring their consent for mutual adjustment of personal account with firm and company accounts.
Is this admissible and ahreeable under the law?
Mahesh Shah
(2308 Points)
Replied 24 March 2023
sabyasachi mukherjee
(27529 Points)
Replied 25 March 2023
Landmark Judgments: Important Provisions of the EPF & ESI Act interpreted by the Honorable Supreme Court of India