Legal

Flat booking with partnership firm – Dissolved after booking – Partners’ liability

In 2008, the Original Complainant had booked flat with the partnership firm of M/s. Bhoomi Construction at Raheja Estate, Borivali, East, Mumbai.   Receipt dated 16.6.2015 for Rs.51,000/- was issued by Bhoomi Construction for part payment of Flat NO.501 on 5th floor in Bhoomi Breze project.   However, neither allotment letter was issued nor any agreement of sale or sale agreement was signed.

The Original Complainant filed the consumer complaint in 2009 against the partnership firm and its two partners. 

The State Consumer Commission allowed the complaint by the order dated 3.4.2017 and directed the builder – firm to hand over possession of flat at the rate of booking of flat in 2008.

The Builder – partnership firm has challenged the said decision on various grounds including that receipt is not enforceable and that the partnership was dissolved.

NCDRC held that the developer cannot avoid liability under the garb of “dissolved partnership” and MOFA Act does not absolve from the liabilities in the absence of partnership.   Invoking Section 45 of the Partnership Act, 1932, it was held that the partners are liable for the obligations incurred during the firm’s existence even post-dissolution of the partnership.

Order dated 5.8.2024 of the National Consumer Disputes Redressal Commission, New Delhi, in First Appeal No.1321 of 2017 of Akshay Doshi Vs. G. Sundar & others

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