Partner has every right to sue the other one: Madras HC
The HC held that under Section 14 of the Partnership Act, property of the firm includes all property rights and interests brought into the stock of the firm.
Published: 15th September 2019 04:42 AM
Madras High Court
By Siva Sekaran
Express News Service
CHENNAI: A partner in a partnership firm is entitled to sue other partners, the Madras High Court has held in a significant order, while permitting BR Srinivasa Rao, one of the partners in Cauvery Hospital to take steps to evict the hospital from its current premises in Villivakkam.
According to advocate VS Suresh, Rao’s partners were his close relatives. After certain disputes erupted in the family, Rao sought to evict the hospital from the premises. However, lower courts rejected his plea following which he moved the High Court.
Justice Saravanan of the High Court held that under Section 14 of the Partnership Act, property of the firm includes all property rights and interests brought into the stock of the firm. Unless a contrary intention appears, the property and rights and interest in the property acquired and the money belonging to the firm, are deemed to have been acquired by the firm.
Thus, unless the intention was to amalgamate the premises with that of Cauvery Hospital, it cannot be said that Rao cannot exercise an independent right over the property, which has been settled by his father to him.Therefore, it cannot be said that Rao cannot demand rent or seek for the eviction of the hospital from the premises merely because he also happens to be a partner in it.
The HC held that under Section 14 of the Partnership Act, property of the firm includes all property rights and interests brought into the stock of the firm.
Published: 15th September 2019 04:42 AM
Madras High Court
By Siva Sekaran
Express News Service
CHENNAI: A partner in a partnership firm is entitled to sue other partners, the Madras High Court has held in a significant order, while permitting BR Srinivasa Rao, one of the partners in Cauvery Hospital to take steps to evict the hospital from its current premises in Villivakkam.
According to advocate VS Suresh, Rao’s partners were his close relatives. After certain disputes erupted in the family, Rao sought to evict the hospital from the premises. However, lower courts rejected his plea following which he moved the High Court.
Justice Saravanan of the High Court held that under Section 14 of the Partnership Act, property of the firm includes all property rights and interests brought into the stock of the firm. Unless a contrary intention appears, the property and rights and interest in the property acquired and the money belonging to the firm, are deemed to have been acquired by the firm.
Thus, unless the intention was to amalgamate the premises with that of Cauvery Hospital, it cannot be said that Rao cannot exercise an independent right over the property, which has been settled by his father to him.Therefore, it cannot be said that Rao cannot demand rent or seek for the eviction of the hospital from the premises merely because he also happens to be a partner in it.
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