Navigating a Partnership Dispute in a Family Business Setting

cabba
My father worked in a ready-made kids' garment shop, which was typically purchased by his three brothers (they purchased the shop) and added my father as a proprietor in the firm. My father honestly worked there for 27 years, and finally, the three brothers decided to give away the shop. They denied my father any partnership or settlement amount. They never looked after the shop but always took the profits.

Could someone provide legal advice on the laws related to this scenario? What should we do as the three brothers deny the partnership claim since my father's name wasn't on the purchase document?

Any help would be highly appreciated.

Thanks,
MV
tushar.swar
Dear Cabba,

Kindly provide the below details for more clarity.

1. Who is the sole owner? Names on purchased documents or land documents.
2. Name of proprietors in all legal documents.
3. Is there any partnership deed?
4. How much % of share each one & what is the payment mode of share?

Regards,
Tushar Swar
tajsateesh
Hello MV,

Further to the queries Tushar Swar mentioned, please confirm the type of remuneration your father was being paid for the 27 years - was it a flat salary or any share in the monthly/annual profits? Also, you mentioned "added my father as a proprietor in the firm" - was it done informally, or was there any documented agreement?

Additionally, who was responsible for handling the statutory obligations like Sales Tax, etc., on paper?

Please provide as many details as possible. This will enable the members to offer more accurate and practical suggestions.

Regards,
TS
Adv. Manoj Liyonzon
Though it's very unfortunate, only upon perusal of clauses in agreements related to profit sharing, liability, and liquidity, claims shall be sought. So approach a lawyer with relevant documents.
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