Sale Of Property In Case Of Partition: Property Partition Laws In India

by Anurag Gupta Real Estate Consultant

According to a court of law, a partition suit may not lead to a successful partition of the property. Rather the partition suit directs the sale of such property based on following rules mentioned in the Partition Act, 1893.

 

The sale of the property is mandatory under the following circumstances:

• Filing of the partition suit before 1893
• Property can't be partitioned
• A huge number of shareholders
• If an announcement for partition has been made before
• Any special circumstance accepted by the court

 

In case of any of the above, the court may consider fit that the distribution of proceeds may be helpful to the concerned parties. In some circumstances, the shareholder may feel the necessity for sale of the said property and may request it.

 

Once the decision for sale has been taken and the distribution of proceeds has been accepted, many situations may arise. These situations are-

• When a shareholder wants to buy: If the shareholder shows interest to buy, the court can order the price of the share and sell it at a determined price.
• When multiple shareholders want to buy: Suppose two or more shareholders want to buy the same property. In this case, the court will order the sale of the property to that shareholder, who is willing to pay the highest price for the property. This amount would exceed the price, which is ascertained after the valuation is conducted.
• If there is no shareholder, who is willing to buy: The situation may arise that no shareholders may be willing to buy the property. In this case, the applicant will have to bear the costs regarding the application.
• When the transferee files a partition suit: Suppose the property share of an undivided Hindu family was sold to a non-member of the family. When this transferee or non-member of the family files a partition suit, the court can order the willing family-member or shareholder to buy this property after a valuation. The court supervises all necessary directions. But if multiple shareholders want to buy the property, the court will direct the shareholder, who is willing to pay the highest amount.
• Request for sale on behalf of a member: One can authorize a competent person to act on his behalf and file a partition suit. However, a court of law may or may not accept such a request, undertaking, or application unless the court identifies that it is for benefit of the party.
• The Court Fixes The Bidding Amount: The court reserves or fixes the bidding amount for all kind of sale. This varies over time. Shareholders can also fix the bidding amount at such a sale citing non-payment of deposit or accounting for the purchase of money or setting off the purchase-money. If a non-member or transferee has fixed the same bidding amount at such a sale, the shareholder is at an advantageous position.

 

Rules behind The Sale Of Property

If the High Court of Calcutta, Madras of Bombay orders the sale of the property, the Registrar will supervise the sale of the property. If any other court orders the sale of the property, the property will be sold based on rules mentioned in the Code of Civil Procedure or rules made by the High Court from time to time.

 

Those pending partition suits, which were filed before the announcement of the Partition Act and in which partition was not finally approved, fall under this Act.

 

Conclusion

The Partition Act applies to the property in India except for the property of Jammu and Kashmir. Even the property can be partly sold if the Court considers it fit.

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Created on Oct 14th 2020 05:26. Viewed 378 times.

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