Dear Sir, I am a partner in a partnership firm along with two other partners (who are husband and wife) other then me. The ratio was 30% me, 30% husband and 40% wife. The partnership is "AT WILL" with no clause of expulsion by majority partners. While formation I agreed to signing by "ANY TWO" partner without realising the consequences. They siphoned off huge sum of money by colluding with each other. When I objected we had a clash and I was forcefully restrained from entering my business premise. I sent a legal notice in my name and asked them to give me books of account and also asked them to restrain from doing any activity without me in October 2021. I also got the bank account of the firm FREEZED. They replied in November 2021 and accused me of certain wrong doings and also mentioned that I have been EXPELLED by the majority partners (Husband & Wife). I did not reply to this notice and moved to Commercial Court in May 2022 to get a permanent injunction and settlement of account. The court's decision has not come. I have come to know that they have opened another bank account in the name of the firm using same PAN number and they have sold the assets of the firm though I have not signed any RETIREMENT Deed and I am still shown as a partner in the records of the "REGISTRAR OF FIRMS" My query is 1. how they could have opened the bank account when the partnership deed in the record of "Registrar Of Firms" has my name present. 2. Is it possible that they are relying on their reply to my notice where they stated that I have been expelled. 3. Is it a fit case for 467, 468, 472 & 120B,
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1. The firm can open multiple current bank accounts for a single partnership firm. This flexibility allows them to compartmentalise funds for different purposes within their business, hence there is no legal infirmity in it.
2. You can challenge their decision to expel you as per articles of association or partnership act.
3. Criminal complaint may not be maintainable especially when you have already approached civil court for remedy
If it’s opened illegally then yes offence made out
Inform the bank wherein bank account has been opened that you are a partner of firm and account has been opened without your consent and to freeze the account
2)you have to seek others for setting aside sale if assets of firm
3) fir case for filing criminal complaint against accused
dont you think you should move an interim application for interim reliefs like maintaining status quo during pendency of the suit
i dont think there is any provision which permits majority partners to expel a partner for alleged misdeeds
two partners signing would mean that such signature of any two partners would be needed for the purpose of signing cheques
it would not mean that two partners [in this case who are closely related to each other] would form a cartel and unilaterally expel the third partner
File FIR agasint them.
of criminal breach of trust
1. Ask for the partnership deed only, signature of two partners would have sufficed for opening the bank account or they could have forged your signature.
2. Not in my opinion
3. This is a fit case under the force mentioned provisions of the Indian penal code along with fraud cheating criminal reach of trust and a section 420 415 and 406 as they had siphoned of money belonging to the form for their personal gains and therefore should be held liable for the same.
Dear client,
From what you've described, it seems there are serious breaches of partnership agreements and potential legal violations by your partners. The fact that they've opened a new bank account for the firm and sold assets without your consent while the partnership deed still includes your name could indicate fraudulent activity.
Since you've already filed a case in the Commercial Court seeking a permanent injunction and settlement of accounts, keep track of the progress. Legal proceedings can take time, but it's crucial to follow up with your lawyer and the court to ensure the case is moving forward. Inform the bank where the new account was opened about the ongoing dispute within the partnership. Provide them with any legal documents you have regarding the freeze of the previous account and the unresolved partnership issues. They might freeze or investigate the new account considering the discrepancies. If your name is still listed as a partner in the records of the Registrar of Firms, this can be a basis for legal action against your partners for fraudulent activities or misrepresentation. Collect all relevant documents, including the partnership deed, the legal notice you sent, their response, bank statements, communication records, and any other evidence that supports your claims and demonstrates their wrongdoing.
It's possible that they are relying on their response to your notice where they claimed you have been expelled. However, whether or not their claim of expulsion holds legal weight depends on various factors, including the terms outlined in your partnership agreement, the laws governing partnerships in your jurisdiction, and the actions taken by all parties involved. In many cases, expulsion from a partnership typically requires a specific clause in the partnership agreement that outlines the conditions and procedures for expulsion. If your partnership agreement doesn't explicitly state conditions for expulsion or if it requires a certain process that wasn't followed, their claim of expulsion might not be legally valid. Moreover, if you haven't officially signed any retirement deed and are still listed as a partner in the records of the Registrar of Firms, this could work in your favor to contest their claim of expulsion.
The sections you've mentioned—Sections 467, 468, 472, and 120B—are sections of the Indian Penal Code (IPC) related to forgery, counterfeiting, and criminal conspiracy. They deal with various aspects of fraudulent activities and conspiracy to commit an offense. Section 467 of the IPC deals with forgery of valuable security, will, or document. Section 468 deals with forgery for the purpose of cheating. Section 472 deals with making or possessing counterfeit seals with intent to commit forgery. Section 120B relates to criminal conspiracy. Whether your situation falls under these sections would depend on specific details and evidence related to the forgery, counterfeiting, or conspiracy you believe has taken place in your partnership dispute. If there is evidence of forged documents, counterfeit seals, or a conspiracy among the partners to commit fraud or harm your interests in the partnership, these sections might be applicable. To determine the applicability of these sections to your case, it's essential to gather concrete evidence. You can reach out to us for further assistance
