Section 48 of the Partnership Act lays down the manner in which the assets of a partnership firm are to be applied after its dissolution:
“48. Mode of settlement of accounts between partners.—In settling the accounts of a firm after dissolution, the following rules shall, subject to agreement by the partners, be observed:
(a) Losses, including deficiencies of capital, shall be paid first out of profits, next out of capital, and, lastly, if necessary, by the partners individually in the proportions in which they were entitled to share profits.
(b) The assets of the firm, including any sums contributed by the partners to make up deficiencies of capital, shall be applied in the following manner and order—
(i) in paying the debts of the firm to third parties;
(ii) in paying to each partner rateably what is due to him from the firm for advances as distinguished from capital;
(iii) in paying to each partner rateably what is due to him on account of capital; and
(iv) the residue, if any, shall be divided among the partners in the proportions in which they were entitled to share profits.”
If, as per your arrangement, after dissolution, the industrial land is required to be transferred to a particular partner, then it may have to be transferred by way of registered transfer like any other land is transferred. Depending upon on whose name the land is presently registered, the person(s) concerned may have to sign such transfer deed as transferor(s). If the industrial land was allotted by any Government agency, you may have to take necessary steps to get such allotment transferred in the name of such partner to whom the land is to be transferred after dissolution of the firm.
Dr. Ashok Dhamija is a New Delhi based Supreme Court Advocate and author of law books. Read more about him by clicking here. List of his Forum Replies. List of his other articles. List of his Quora Answers. List of his YouTube Videos.
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