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?
4 Replies
Ayush
(Executive )
(4162 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)
(88 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
(1938 Points)
Replied 24 March 2023
Do any agreement between parties make and VOIDE transaction done by them enforced in law??
sabyasachi mukherjee
(18976 Points)
Replied 25 March 2023
Arrange for an agreement , because the deposits won't fetch you any interest. Adjust the payable with deposits.
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