Business & company
Dispute with my business partner (partnership firm or LLP)
Partner disputes come down to the deed, the accounts and who did what. Let's collect those.
Answer a few questions and get your list →What the law says
Partnership firms are governed by the Partnership Act, 1932; LLPs by the LLP Act, 2008. An unregistered firm faces limits on suing third parties and partners in some cases. Many deeds require arbitration.
General information, not legal advice.
Papers that usually help
- Partnership deed / LLP agreement and amendments
The starting point. - Registration certificate (Form A / LLP incorporation)
Affects remedies. - Proof of capital contributed by each partner
Basis for return of capital. - Books of accounts, bank statements and tax returns of the business
Shows diversion and profit shares. - Evidence of diverted clients or money (invoices raised elsewhere, messages)
Supports recovery and criminal complaints. - Messages, payments and witnesses showing the partnership existed
Needed when nothing was written. - Your notice of retirement/dissolution or the notice expelling you
Fixes dates and rights. - Firm loans, guarantees and creditor demands
Partners can be personally liable in firms.
Questions Saboot will ask you
- What kind of business?
- Is the firm registered with the Registrar of Firms?
- What is the problem?
- Is there a written partnership deed / LLP agreement?
- Does it have an arbitration clause?
Sources
- Indian Partnership Act, 1932 and Limited Liability Partnership Act, 2008
- Indian Contract Act, 1872
Common situations
- Partner not showing accounts
- Partner took money from the firm
- Want to leave the partnership
- Thrown out of the partnership
- Informal business with a friend broke down
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