My tenant, a partnership of 3 friends, rented my commercial property in May 2015. One partner didn’t contribute any money. After 6 months, one partner told me the non-investor couldn’t handle losses and wasn’t participating. Another partner wanted to transfer his share to his mother. I signed a new partnership agreement with the remaining two (one original partner and the mother). The non-investor didn’t respond to calls or sign the new agreement. Now, after 18 months, he’s sent a notice claiming I shouldn’t have signed the new agreement without his resignation. What should I do?

Apni Law
Apni Law
Law Forum › Category: Landlord / Tenant › My tenant, a partnership of 3 friends, rented my commercial property in May 2015. One partner didn’t contribute any money. After 6 months, one partner told me the non-investor couldn’t handle losses and wasn’t participating. Another partner wanted to transfer his share to his mother. I signed a new partnership agreement with the remaining two (one original partner and the mother). The non-investor didn’t respond to calls or sign the new agreement. Now, after 18 months, he’s sent a notice claiming I shouldn’t have signed the new agreement without his resignation. What should I do?
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Apni Law Staff asked 8 months ago

My tenant, a partnership of 3 friends, rented my commercial property in May 2015. One partner didn’t contribute any money. After 6 months, one partner told me the non-investor couldn’t handle losses and wasn’t participating. Another partner wanted to transfer his share to his mother. I signed a new partnership agreement with the remaining two (one original partner and the mother). The non-investor didn’t respond to calls or sign the new agreement. Now, after 18 months, he’s sent a notice claiming I shouldn’t have signed the new agreement without his resignation. What should I do?

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Best Answer

Apni Law Staff answered 8 months ago

The non-investor’s claim is likely invalid. Under Indian law, a partner can be expelled from a partnership for inactivity or failure to contribute. Since he wasn’t contributing and the remaining partners informed you, you were within your rights to sign a new agreement. You should consult a lawyer to respond to the notice and explain the situation.

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