In a case that underscores the importance of strict adherence to partnership agreements, a legal notice has been served to a Chennai-based partnership firm by one of its founding partners for alleged breach of the Partnership Deed. The notice, issued through legal counsel, accuses the firm of violating key terms related to profit sharing, operational decisions, and financial disclosures.

According to the contents of the notice, the complainant—a partner holding 25% stake in the firm—has alleged that the remaining partners made unilateral business decisions and withheld financial records, thereby breaching the mutually agreed terms laid out in the original Partnership Deed. The notice also states that no prior consent was taken before executing contracts with external vendors, a clause clearly requiring unanimous approval under the deed.

Legal sources confirm that the aggrieved partner is seeking immediate rectification of the breach, full disclosure of financial statements for the past two fiscal years, and settlement of unpaid dues. The notice further warns that civil proceedings will be initiated if the firm fails to respond or resolve the matter within the statutory notice period of 15 days.

This development highlights the growing number of disputes arising in small and medium-sized partnership firms, especially those operating without regular internal audits or structured decision-making protocols. Legal experts emphasize the importance of maintaining updated Partnership Deeds and conducting periodic reviews to avoid misinterpretation or misuse of agreed terms.

“This case is a reminder that partnership deeds are legally binding documents and any deviation without consent can lead to serious consequences,” said Advocate Rajeev Menon, a corporate legal advisor based in Chennai.

If unresolved, the matter is expected to proceed to a commercial civil court, where the complainant may seek dissolution of the partnership or enforcement of specific performance under the Indian Partnership Act, 1932.