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The
property of a partnership firm will consist of all the assets, moveable
and immoveable brought in by any or all the partners into the firm and also
include the goodwill.
As to what is goodwill see Introductory Note to Ch.
3 Part III. It may be stated that relying upon the specific provision of
s. 22 of the English Partnership Act, 1890, the Supreme Court has held that
all property of a partnership firm, whether moveable or immoveable is moveable
property. and therefore, on retirement of any partner or dissolution of
partnership the division of even immoveable property among the partners
does not amount to transfer of property and the deed of retirement or dissolution
does not require registration.
The Supreme Court has not considered the law of
vesting and divesting of interest in an immoveable property. A property
acquired by A by purchase or otherwise is vested in him and even
if A brings that property into partnership and it is used for the partnership
business, the property is not automatically divested from A and vested in
A and his other partners.
Vesting and divesting can take effect only by
act of parties or by operation of law, and, therefore, the property brought
in by A cannot become vested in the other partners unless there is
a regular transfer of the property by A to himself and other partners. And
similarly if property vested in the
partners is divided, among them, it amounts to transfer of one partner's
interest to the other, and such transfer is necessary to vest and divest
the title from one to the other.
Even in English law, inspite of the provisions
of Partnership Act above referred to, the conveyancing practice is to effect
the transfer of property brought in or taken out of the partnership by a
Deed of Conveyance.
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