Partnership- Property on death of one of two partners?
This query is : Resolved
Quick Summary
06 July 2020
Respected Members,
A partnership firm has two partners which owns some landed property. One of the two partners passed away.
Question :
1. Who becomes the owner of the landed property?
2. Does it become joint property of 1st deceased partner's family & 2nd partner and accordingly will these names be mutated in land records?
3. Does it become sole properietorship of 2nd partner i.e he becomes the sole owner of the property?
Contradictory views :
1. Local experts have given contradictory views.
2. I read the view of the Supreme court in a judgement of 2016? that the partnership automatically dissolves even if there is clause to the contrary (In this partnership also there was a clause that the partnership shall not dissolve on death of a partner).
I would be very thankful for your valued reply.
A partnership firm has two partners which owns some landed property. One of the two partners passed away.
Question :
1. Who becomes the owner of the landed property?
2. Does it become joint property of 1st deceased partner's family & 2nd partner and accordingly will these names be mutated in land records?
3. Does it become sole properietorship of 2nd partner i.e he becomes the sole owner of the property?
Contradictory views :
1. Local experts have given contradictory views.
2. I read the view of the Supreme court in a judgement of 2016? that the partnership automatically dissolves even if there is clause to the contrary (In this partnership also there was a clause that the partnership shall not dissolve on death of a partner).
I would be very thankful for your valued reply.
06 July 2020
It become joint property of 1st deceased partner's family & 2nd partner.
Property will not be registered in the name of Partnership firm.
Check whose name is there in registered deed.
Property will not be registered in the name of Partnership firm.
Check whose name is there in registered deed.
07 July 2020
Thanks a lot Mr Seetharaman for your valued inputs.
Sir, further to this, if the given property is sold now and if the LH of the 1st partner give their consent in the sale deed for partner no 2 to receive the full amount, will it amount to gift in the hands of the LH?
Sir, further to this, if the given property is sold now and if the LH of the 1st partner give their consent in the sale deed for partner no 2 to receive the full amount, will it amount to gift in the hands of the LH?
07 July 2020
Yes, it amount to gift.
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