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UMy father has been a **partner in a supermarket business for 25 years**. The business was started with a **partnership deed**, where my father owns **30%** and the other partner owns **70%**. However, we are unsure if the deed was officially registered. The **managing partner** has been handling all accounts and finances since the beginning.
When they started, my father already had **10 years of experience** in the supermarket business, while the other partner was inexperienced. Over the years, my father worked full-time in the business, **essentially like an employee**, while the managing partner controlled finances and **never properly shared profits**. Instead, he only provided money during family emergencies (education, marriage, etc.) but not as regular profit-sharing.
Meanwhile, the managing partner expanded and opened **multiple supermarkets** using funds from the partnership. My father **blindly trusted him** and **signed balance sheets every year without verifying the financial details**. Now, the managing partner wants to **dissolve the partnership** and take full control of the business, offering my father a **very low settlement**.
**Key Issues We Found:**
• We **requested account statements and balance sheets**, but the managing partner **refused to provide them**, despite the **partnership deed stating that any partner has the right to check accounts at any time**.
• We managed to retrieve **ITR (Income Tax Returns) and balance sheets for the last 5 years** through the accountant. From these, we noticed that **₹25 lakh is deducted from the accounts every year**, even though my father never withdrew such an amount.
• The managing partner has been **withdrawing funds from both his and my father’s capital** for his own use.
• As per the latest balance sheet, **my father now has more capital in the business than the managing partner**, despite the original 70-30 split.
• The managing partner still insists on giving us a **small settlement and refuses to disclose the current financial position of the firm**.
**Our Concerns:**
1. Since the managing partner has **misused partnership funds and withdrawn money from both accounts**, can we **file a criminal case** against him? **Would the fact that my father has been signing the balance sheets every year without verifying the figures weaken our case?**
2. Does my father’s **higher capital** in the latest balance sheet work in our favor legally?
3. Should we **settle for the low amount** he is offering or **fight this legally**?
4. What are the key legal aspects we should check before making a decision?
We want to ensure that my father gets a **fair settlement** for his **25 years of hard work and investment**. Any **legal or practical advice** would be greatly appreciated! **We are based in Kerala, in case that’s relevant to legal proceedings.**
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