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Indian Law/Power of attorney given by a partner


My dad and his 4 brothers are partners in a registered firm in tamilnadu. My father has given me a poa based on which I am attending the business. I have found out some misappropriation of funds by one of my uncles and have filed a suit against him. Now my uncle says that a partner cannot appoint anyone as his poa and has filed a suit in the munsif court praying to declare the poa given as null and void. My question is is that true?  Can my uncle challenge me in being the poa of my father because I have unearthed a lot of money diversions from the business to his personal accounts! Now he wants to stop me from involving in the business at any cost. Please advise me as and how to proceed? Thanks in advance Sir

Every person competent to contract has the right to engage a representative to look after his interest through a power of attorney. Nobody could prevent it.

The object of forming a partnership is to combine oneís talent and resources with another in order that both of them can make profits. However, when a business partner gets greedy, he starts stealing from Firmís Account. In such a situation, you can file a criminal complaint for embezzlement. It means theft of money by a person in position of trust. You can also file a suit for breach of fiduciary duty. You can also dissolve the Firm and form a new partnership.

Before lodging the complaint please ensure that mis-appropriation is actually taking place by inspecting the books of accounts. Otherwise, it will affect the reputation of the business and may ultimately result in dissolution of the firm. Further, if theft has indeed taken place, an employee rather than the partner might be behind it. So please make sure that the theft indeed took place, and that your uncle and not anyone else was behind the theft. Nothing is worse for the business than partners accusing each other of things that are misunderstood or absolutely untrue. Moreover, the Firm can face adverse consequences that arise from the criminal conduct of one of its partners. The partner can also sell his shares to a stranger, forcing you into an unplanned partnership.

So please take appropriate actions on the matter in consultation with a lawyer.

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Arun Kumar Maitra


Contract Law,Companies Act,Sale of Goods Act,Partnership Act,Negotiable Instument Acts,Constitution of India,Arbitration Act,Consumer Protection Act,Maternity Act,Payment of Gratuity Act,Payment of Bonus Act,Shops & Establishment Act etc.The answer to the grievance of the particular online query depends on the facts of the particular case and law applicable to it.However,my comments relating to the various queries raised through the "All Experts" should not be treated as legal advices and should not at all be relied upon.I do not accept any responsibility for them.They will only give you some ideas about the probable merits of your cases.Ultimate actions/decisions in the matter may please be taken in consultation with the Legal Experts in the relevant fields.My purpose of giving the comments is to increase my own knowledge on the subjects and share it with others.It is purely of academic interest to me. I strongly feel the more knowledge we share,the more we shall be able to learn because there is neither any age nor any end to learning.


I have experience of dealing with matters relating to holdings of board/general meetings,maintenance of statutory registers,filing of necessary returns with the RoC,obtaining licenses for import,replies to Parliament Questions,dealing with the Parliamentary Committees,appearing before various courts to defend my employers,filing affidavits/counter -affidavits,preparing written statements/re-joinder,giving advice to management on complicated legal issues,preparation,drafting and vetting of contracts etc. I have more than 35 years of experiences to deal with the Company Law and Other Commercial Laws of leading Organisations in the country both in Public as well as Private Sectors.

Member,Inst. of Chartered Accountants of India Member,Inst. of Company Secretaries of India; Member,Bar Council of India Member,All India Management Association Member,Delhi Management Association Ex. Vice-Chairman,Durgapore Chapter of the I.C.A.I. Expert ,CA Club India Expert ,Lawyers Club India Expert,AllExperts Ex. Faculty ,I.C.S.I as well as I.C.W.A of India Retd. Co. Secy. & G.M.(Law)/NFL(A Mini-Ratna A Schedule Central P.S.U.),New Delhi Ex.V.P.(Secretarial Dept.),Jaiprakash Associates Ltd. Ex. Co. Secy.,MAMC(A Govt. of India Enterprise),Durgapore



Awards and Honors
Obtained ''A'' Grade Certificate in the Parliamentary Procedure from the Secy. General of Parliament in 1994-95.It was in connection with a training course conducted by the BPE for PSU Executives.

Past/Present Clients
I am presently working as a Company Secretary in Old World Hospitality Pvt. Ltd.located in Delhi.It is engaged in Hospitality Industry.It has Units in India and abroad.It has been given the responsibility to look after operation & Management of ''India Habetat Centre'' located at Lodhi Road,New Delhi.

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