Is partner legally allowed to generate bills after firm dissolution?
I am a partner in a partnership firm formed to collect rental income by generating rental invoices. My other partner issued a dissolution notice six months ago but continues to generate rental bills under the pretext of winding up. I have already served him a notice. Is it legal for him to generate bills post-dissolution, and what further steps should I take?
Dear Client, As soon a dissolution notice is given, the partnership ceases to exist from that moment on unless a different date for dissolution is mentioned in the notice. He can continue to generate bills after the partnership is dissolved, if there is need to pay creditors of the company and to settle the debts of the company. However, with out any valid reason if he continues to issue bills, then you should initiate criminal proceedings against him unless there is a need for him to do it for settling the assets and liability of the partnership. I hope this was helpful. For further queries, please do not hesitate to contact us. Thank you.
Once a partnership firm is dissolved, continuing to generate invoices without your consent is illegal. You can send a formal legal notice demanding cessation of billing and settle pending dues. If he continues, you may approach the civil court for injunction and compensation, as well as file a complaint with the partnership tribunal to protect your interests. For further legal assistance contact on our helpline number.
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