I have Purchased land in individual Name.Later on transfer it in Partnership firm by book entry.Partnership firm Construct Flats on it. Flats sold by Partnership firm in his name.In the sale Deed showing land purchased in the firm Name but there is no sale deed in firm name.
My question is Can Land transfer to partnership firm without sale deed?
As per Section 14 of the Partnership Act, 1932, which deals with what constitutes partnership property, partnership property consists of property originally brought in by the individual partners as their capital contribution and/or it may also consist of property purchased by the partners jointly out of the funds belonging to the partnership firm. Please remember that unlike a company, a partnership firm is not a separate legal entity.
As far as I understand when a partner brings in his property as his capital contribution in the partnership firm, there is no need for a sale deed, but it must be reflected in the deed of partnership or if it is brought in subsequently it should be properly reflected in the books of the partnership as the capital brought in by that partner. In such situation, it would be helpful if the partnership firm is registered.
You must be logged in to reply to this topic. Log in/Register