They gave an undertaking in court and admitted their liabilities. Now they haven't acted as they had stated. File a contempt application.
Sir/Madam Plaintiff filed RCS against 03 Defendants being 2 Partners Mr A and Mr B and third Defendant is their Partnership Firm namely M/s. AB Enterprises and summons were served to all these three Defendants. One Partner Mr A appeared before Court and admitted claim of the suit and gave undertaking in Court as under :- “ that we will pay Fixed amount to Plaintiff in 03 Months otherwise the suit property will be transferred in the name of the Plaintiff by registering the 'Agreement to Sale' in favour of Plaintiff”. And these Defendants executed 'Agreement to Sale' in advance in favour of Plaintiff and copy thereof has been submitted in Court Relying on the aforesaid undertaking and Agreement to Sale the Court disposed the suit But Defendants did not pay even a single paisa to the Plaintiff in three months on one Hand but they changed partners in Partnership Firm by making “Deed of Sale' in which one partner Mr B sold his share in M/s. AB Enterprises to Mr. X and registered the aforesaid Deed in sub-registrar by paying stamp Charges and Registration Charges Thus the suit property though belongs to the same Partnership Firm but the Partners of the said Firm have changed without consent of Plaintiff and Court In such situation whether (1) it is not contempt of Court ? (2) the aforesaid 'Agreement to Sale' made in favour of Plaintiff by the old partners is still subsisting and valid in such situation or it will need signature of new partner also (3) Or New partners will have to make new 'Agreement to Sale' in favour of the Plaintiff ? Please guide, HARIOM
They gave an undertaking in court and admitted their liabilities. Now they haven't acted as they had stated. File a contempt application.
It is contempt of court you can seek cancellation of the sale deed and also direction to register the flat in your names as per the consent terms
Any wilful disobedience or violation of any court order judgements decrees are contempt of court.
In partnership, one partner can not admit any liability in a suit against the firm.
So the order passed by the trial court is void ab initio. Which the higher court can not force to comply and therefore out of scope of any contempt proceedings.
New partner do not require to sign further.
1) agreement for sale is valid and binding
2) if it is un registered Issue legal notice to firm to register the sale deed
3) if they refuse to register then take out contempt of court proceedings against the firm and its partners
1. This is contempt of court.
2. File execution petition and also contempt petition.
3. The previous agreement to sell gives to the plaintiff the cause of action to file a fresh suit to declare the subsequent sale deed executed, in violation of the undertaking given to the court on the basis of which the suit was disposed, as void and non est.
1. It's not contempt of court because you have not filed an execution petition to execute the order.
2. The agreement of sale has been entered by a partner representing the company and not in his individual capacity.
Therefore it is very much valid and there's no need for the new partners to enter into an agreement once again.
3. Not necessary.
Dear Sir,
My answers are as follows:
(1) it is not contempt of Court ?
Ans: Yes, it is contempt of court but in rarest of rare cases the courts register such
contempt cases. Court ask to file execution first but you may file an application to refer the
matter by trial court to the High Court to treat such matter as deliberate contempt in many
matters.(2) the aforesaid 'Agreement to Sale' made in favour of Plaintiff by the old
partners is still subsisting and valid in such situation or it will need signature of
new partner alsoAns: If it has not expired three of period then it is valid.
(3) Or New partners will have to make new 'Agreement to Sale' in favour of the Plaintiff ?
Ans: Not necessary.
I would definitely answer your questions legally point to point which are as follows:-
1- The answer to first question is No Contempt.
Because it is the internal affairs of partnership firm and their partners.
You have to check whether the partnership firm is registered or not .If not then there is problem. Section 69 1,2,2a and 3 of Indian Partnership Act 1932 are very much sound and clear about registration of Indian Partnership Firm.
2-It is valid agreement, no need for fresh agreement or signature as long as the firm is not dissolved.
3- No New agreement by new partners as the firm is still in existence and previous agreement and undertaking is binding on the partnership firm and partners as of today.
1) Yes, it is contempt of court.
2) Yes, the AOS is binding on all the parties.
3) If new partners deviate from orders and refuse to comply with the directions you can initiate Execution Proceedings and also file Contempt application for not complying the undertaking.
A partner is an agent of other partners and any statement made by him is binding on the partnership and its partners
so the deed of sale made by the partners in favour of the new partner will be subject to the agreement of sale already executed by the partners in favour of plaintiff
so the sale deed will now have to be executed in favour of the plaintiff by the existing partner [one who did not sell his share] and the assignee of the outgoing partner [i.e. X] in favour of the plaintiff
thus X is bound by the undertaking given to the court on behalf of the partnership and partner B
Hello,
1. It is not contempt of court .
2. If a resolution was passed by the firm appointing one or more of its partners as the authorized agent to sign agreement or the sale deed then agreement is valid.
3. not required.
1. No it is not contempt of court as there was no order for further transfer of firm by selling it.
2. The agreement of sale is still valid and you should file execution petition before court for execution of orders by trail court.
3. In execution petition Former partners and firm will be judgement debtors.
Sirji Actually the case is as under :- Suit property agreed by Defendants in Court to be sold to Plaintiff is 1 Acre of NA Land P. Ship Firm M/s. ABC enterprises had 16 acres Agricultural Land and 1 Acre of NA Land thus totally 17 acres of Land. Out of that 1 acre of NA Land was agreed in Court to be sold to the Plaintiff. BUT Mr. B one partner transferred his share of Agricultural Land to Mr X and NA Land of 1 Acre (which had been agreed to sell to the Plaintiff) is not transferred and it is untouched. But new Partner Mr X has been admitted to the Partnership Firm M/s. AB Enterprises Thus, the basic structure of Partnership Firm has been changed WITHOUT CONSENT OF COURT AND PLAINTIFF Please guide about validity of Agreement to Sale made by Old Partners in favour of the Plaintiff and submitted in the Court ? Whether such change in structure of P.Ship Firm without consent is contempt or not ? Regards please guide HARIOM
Change in structure of firm is not contempt of court
there is no court order restraining change in constitution of firm
No Contempt.
1-Yes, agreement is valid and All partners along with partnership firm is bound to comply the undertaking made before the court of law and order of the Court.
2-Neither the court nor you have any rights to interfere in the internal affairs of the partnership firm. If firm and partners are not complying the undertaking and order of the Court then Contempt other wise "NO CONTEMPT".
You are not getting the trick played by opponent.
In partnership one partner can not admit claim in a suit. All partners should agree.
Other partners will raise this issue and lower court order will be declared void ab initio.
Is there any order passed by court subsequent to the partnership firm/defendant agreeing to sell the one acre of NA land to the plaintiff.
You say that the partnership firm/defendant sold one acre of agricultural land only and the the agreed NA land remains untouched, hence it is very much available to sell it to the plaintiff as agreed before court.
The subsequent development of including another person as partner to the firm has nothing to do with this sale of property or pending dispute before court.
The firm's routine and specific activities which do not contravene or contradict the court proceedings, need not be considered as an act of contempt of court.
It is their own affairs for which they need not obtain permission from court.
If at all the plaintiff is aggrieved then he can file an execution petition seeking to execute the orders of the court against the defendant, however before that he has to plead before court to pass an order on the basis of the willingness expressed by the defendant before court to sell the one acre of NA land to the plaintiff and obtain a copy of the orders so passed in order to execute the same if the defendant is not cooperating with the plaintiff in this regard.
Please remember that the firm is being represented by the firm as defendant in the case, hence it does not matters that who remains as director/partner now or earlier to execute the court orders or to appear before court.
The partnership structure of the firm has been changed in order to circumvent the judgment of the court and hence it amounts to contempt.