What can I do if my business partner has done fraud in partnership deed?
If 3 people are shown as partners of a firm by means of partnership deed to sales tax department in 2020 but on the same time 2 partners open another account of firm in bank by showing another partnership deed, which show only 2 people as partners of the firm then is it a fraud?. There is no dissolution or retirement deed of the firm available and all 3 initial partners still are shown as partners of the firm to sales tax department. The partnership deed in which all 3 were partners of the firm is not in dispute and original of it is shown in court. +Is there any judgement of high court of supreme court which is similar to this case. please mention the case title and date of judgement along with name of judge/bench.
Yes, the actions of two partners may constitue fraud, as they have opened a new bank account under a different partnership deed excluding the other partner, ignoring the fact that all three of them are still being recognized by the sales tax department. If the fraud is committed then you can file a suit and get partnership dissolved and accounts settled as per law and as per terms of partnership deed. Relevant judgement is given in Gurudevdatta Maryadit v. State of Maharastra. Bench;G.B. Pattanaik, Umesh C Banerjee & B.N. Agrawal
The Indian Partnership Act, 1932, defines a partnership as "the relation between persons who have agreed to share the profits of a business carried on by all or any of them acting for all." This means that all partners have a right to be involved in the management of the firm and to share in its profits and losses. For further enquiry Contact us on helpline number.
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