Imagine a small business in India, run by five partners, taking out a five-year loan from a government bank to fund a new project. Sadly, the project hits a snag, causing financial strain and leaving the company owing the bank. The partners are struggling to meet their repayment obligations, slowing down the project’s completion. They now want to bring in a new partner who will not only manage the project but also inject much-needed funds. How can this new partner safeguard themselves from the existing bank debt?

Apni Law
Apni Law
Law Forum › Category: Corporate › Imagine a small business in India, run by five partners, taking out a five-year loan from a government bank to fund a new project. Sadly, the project hits a snag, causing financial strain and leaving the company owing the bank. The partners are struggling to meet their repayment obligations, slowing down the project’s completion. They now want to bring in a new partner who will not only manage the project but also inject much-needed funds. How can this new partner safeguard themselves from the existing bank debt?
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Apni Law Staff asked 9 months ago

Imagine a small business in India, run by five partners, taking out a five-year loan from a government bank to fund a new project. Sadly, the project hits a snag, causing financial strain and leaving the company owing the bank. The partners are struggling to meet their repayment obligations, slowing down the project’s completion. They now want to bring in a new partner who will not only manage the project but also inject much-needed funds. How can this new partner safeguard themselves from the existing bank debt?

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Apni Law Staff answered 9 months ago

The new partner can safeguard themselves by entering the partnership agreement with a clear clause stating they are not liable for the existing bank debt. They should also ensure the agreement clearly defines their contribution and ownership percentage, independent of the previous partners’ liabilities.

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Previous Article My business partner and I started a telecom office as a partnership, representing Tata Docomo. Now, my partner wants to take over the entire business. Our company policy requires him to have his own space or a registered agreement to start a new firm. We have a registered agreement for our current office. He claims he’s made arrangements with the landlord for a new agreement. How can I prevent this new agreement from being finalized, considering our existing registered agreement?
Next Article I signed a two-year contract with a company in India and started working. After only two months, I had to leave. Now, the company is demanding a large sum of money from me. Is this kind of contract legally valid in India?

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