Home Case Index All Cases Indian Laws Indian Laws + HC Indian Laws - 2018 (10) TMI HC This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2018 (10) TMI 1009 - HC - Indian LawsLiability of a partner for acts of the firm - loan taken by partnership firm unpaid - recovery proceedings by bank - contention for the petitioner is that till date the entire repayment has been made by the petitioner only, the other partner and his legal heirs have not made any payment - partners jointly and severally liable for the acts of the firm - Held that:- It has not been disputed that the loan was taken by the partnership firm. Petitioner and Jai Singh were partners. The liability of the partners is co-extensive. The repayment of loan to the respondent No.3-bank cannot be stalled on the ground that there is dispute between the partners and that one of the partner is not discharging his share of liability. It is between the partners to settle their dispute inter-se. In case of a partnership firm, it cannot be contended by one of the partner that his liability is restricted according to his share and he will not discharge rest of the liability. The argument raised is against the provisions of Section 25 of Indian Partnership Act, 1932. As per Section 25 of the Indian Partnership Act, 1932, every partner is jointly and severally liable for the acts of the firm. The petitioner is liable to clear the liability of the firm. The right of the bank while making recovery is not affected by the individual share percentage of each partner in the firm, it is something into the partners. Thus the contention of the petitioner that on discharge of half of the liability, his share of property may be released by the respondent No.3-bank, deserves rejection. The alleged dispute between the partners is being used as a tool to deprive the respondent No.3- bank from recovering the outstanding dues. The property mortgaged was in joint ownership yet the endeavour is to get partial mortgaged property released. Petition dismissed.
|