Wednesday, May 16, 2012

SLEEPING PARTNER NOT RESPONSIBLE FOR FIRM'S VIOLATIONS: COURT

A partner who is not in charge of the day-to-day affairs of running the firm and who is merely a
sleeping partner should not be harassed for non- compliance with law.This was the Delhi High Court verdict in a petition filed by Mr. Dharampal Gulati, the octo generation brand ambassador of MDH, whose 'Kitchen King' was sent for analysis under the Prevention of Food Adulteration Act. Following this, a case was filed against the firm and the petitioner. The High Court, after going through
the partnership deed, agreed with the petitioner that he was only a sleeping partner and, hence, ought
not to be disturbed. Hence, the proceedings against the petitioner, a sleeping partner in the firm, were quashed.

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