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Recovery of outstanding dues by a non updated PARTNERship firm


20-Jun-2025 (In Recovery Law)
One partnership firm having five 6 partner but three of them facing trial in court.... The accused partner has sent legal notice for inflated outstanding dues..... Can I demand forensic audit And they have not updated there registration as they reconstitute many times.....
Answers (3)

Answer #1
693 votes
In the scenario you described, where a partnership firm has multiple partners, and three of them are facing trial, it is indeed possible to demand a forensic audit, especially if there are concerns regarding inflated outstanding dues and the financial integrity of the firm. Conclusion: It is advisable to consult with a legal professional who specializes in partnership law to draft a formal demand for a forensic audit and to address the issues related to the registration of the partnership. Ensure that all communications are documented and that you maintain a clear record of the partnership's financial dealings to support your position in any legal proceedings.
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Advocate Joyson Pereira

Adv. Joyson Pereira

LawRato VasaiVirar | 25+ Answers
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Answer #2
936 votes
Yes, as a partner, you can absolutely demand a forensic audit of the partnership firm, especially given that some partners are facing trial and there are concerns about inflated outstanding dues and unreconciled reconstitutions. Under the Indian Partnership Act, 1932, every partner has a right to access, inspect, and copy the firm's books, and to demand true accounts and full information. The failure to update the firm's registration after multiple reconstitutions is a serious non-compliance issue under Section 69 of the Act, potentially limiting the firm's and its partners' ability to enforce rights in court, including the recovery of dues. A forensic audit would be crucial to investigate the alleged inflated dues, assess the true financial position, and uncover any irregularities or fraud, providing you with evidence for potential legal action against the accused partners or for protecting your interests.
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Advocate Mahrukh Khan

Adv. Mahrukh Khan

LawRatoMumbai | 200+ Answers
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Answer #3
786 votes
Yes, you can demand for a Forensic Audit, moreover they should have reconstituted and renewed the partnership structure/partnership if certain old partners have resigned or died and new partners would have come into picture!
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Advocate Pankaj Bajaj

Adv. Pankaj Bajaj

LawRatoMumbai | 1000+ Answers
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