Menu

Partnership & Co-Founder Disputes

Partners falling out — accounts, exits and control resolved before the business dies.

Partnership Act + LLP Act, 1932 / 2008 · Rights, dissolution & accounts

Overview

Partner disputes kill more small businesses than markets do: one partner running the bank account as personal money, profit-sharing 'adjusted' unilaterally, a partner locked out of premises or accounts, or a walkout that leaves liabilities behind. The Partnership Act gives every partner enforceable rights — access to books, a share of profits, participation in management — and remedies from rendition of accounts to dissolution by court. For LLPs and companies, the toolkit shifts to the LLP agreement and oppression-mismanagement law. The commercial goal is usually not litigation forever: it's a valued, documented exit or buyout — which the legal pressure exists to produce.

Key Provisions — Partnership Act + LLP Act, 1932 / 2008

  • Every partner is entitled to access books and accounts; exclusion from management or premises is actionable.
  • Suits for rendition of accounts make the controlling partner explain every rupee — often the decisive remedy.
  • Dissolution: by agreement, by notice in a partnership-at-will, or by court on grounds like misconduct and deadlock.
  • Company/LLP deadlocks: oppression and mismanagement petitions (NCLT) and LLP-agreement enforcement.

What You Can Get

Accounts & your true profit share
Injunctions against asset diversion
Valued exit / buyout on fair terms
Dissolution and winding-up where beyond repair

How We Handle It

1

Position Audit

Deed/agreement, capital, drawings, and what each partner can actually claim.

2

Notice & Negotiation

A rights-asserting notice — most disputes settle into a buyout here.

3

Interim Protection

Injunctions on bank accounts and assets where diversion is running.

4

Suit / NCLT

Accounts, dissolution, or oppression proceedings — pursued to a valued exit.

Typical timeline: Negotiated exits 1–4 months · account suits and NCLT matters 1–3 years.

Frequently Asked Questions

There's no written partnership deed — do I still have rights?

Yes. An oral partnership proven by conduct (joint accounts, shared profits, GST/bank records) gets the Act's default rights: equal profit share, access to books, and dissolution remedies.

My partner has locked me out of the office and the bank account — what's the fastest move?

An injunction application with a rendition-of-accounts suit, plus notices to the bank putting them on notice of the dispute. Lockouts usually reverse quickly once court pressure starts.

Legal Connect connects you with independent commercial advocates; we are not a law firm and this page is general information, not legal advice. Business enquiries are handled confidentially — call +91 22 6555 3444.

Related Business Matters