We have a building which was earlier being used commercially. But the building is almost century years old although it is still in good condition. But this is a joint property. Our grandfathers were three brothers.One of them were unmarried. We are the descendants of rest two of them. Now we are planing to sell the building as it is no more used. All of the stake-holders are ready for this but one share-holder (12% share on the property) is opposing for this. As the building is no more used now a days, the maintenance cost is growing day by day and it is becoming difficult to spend most of the expenses for few share-holders who are relatively principal share-holders of the property (75% & 13%). If any steps cannot be taken within few years, the building would collapse very soon. Now as per property laws in India, with the resistance from minimum shareholder, any joint decision would be nullified.So it is quite difficult to sell this building with all stakeholders total agreement as the resistant stakeholder is not ready to sell his shares at any cost. Instead he is arguing for abrupt high shares/cash for agreeing on this which again is total illogical and illegal. In such circumstances, is there any way that the building can be sold legally? One option is there to sell the shares of the property to any third person and handover the legal shares of the building. But as we live in relatively small town (almost 120 km from Kolkata), the potential buyers are getting afraid because the resistant shareholder can file a lawsuit once the buyer wants to do a remodeling/reconstruction/demolition of the building after buying the shares. Is there a way to protect the potential buyer from this kind of potential financial as well as legal harassment? Because then only, people can be assured over to buy major shares (88%) of the building. This is a very crucial decision for us. Please help me with proper legal guidance for the same.
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1) you can file suit for partition for division of property by metes and bounds . If it is not possible fir property to be divided court can direct property to be sold
2) in the alternative co owner can sell his share under provisions of section 44 of transfer of property act without consent of other co owners
3) the purchaser can file suit for partition
Thank you Ajay for quick response. Hereby I would like to know more about it: 1. The building contains total 5 shareholders, one of whom is married and lives in other city. I have heard that partition suit can take upto 20-25 years to get resolved. Is it true? Also we have some other properties near to that building. If we apply partition suit in local court, would it be applied to the whole property where the same shareholders contain shares? If so, then that would be a problem? Can partition suit be filed for a particular section of the property/only for the building, where the shareholders would not be impacted using other sections of the property. I am asking because we have some tenants paying rents in other parts which can go straight to rent-control office if partition suit covers the entire property instead of the old building. 2. I am aware of the section 44 (transfer of property act). But I want to know the probable legal consequences in case the potential buyer buys major share. What if the buyer wants to reconstruct/demolish the building for commercial utilization and the resistant share holder puts a holding petition on that? Can the buyer put aside 12% of the building for the resistant share holder anywhere and start utilizing the rest? How can we ensure buyer that on buying major shares, he wont face any litigation/legal harassment? 3. Boils down to question 1. If partition suit takes around 20-25 years, nobody would be interested to buy in the property. Is there a way to fast track the partition suit process? Is there any legal process to facilitate the same? Thanks in advance.
1) partition suit would cover all the properties
2) disposal of case would depend upon pendency of court cases
3) buyer has to move court for partition of property if he wants to take possession of property and further
4) if buyer is senior citizen he can move high court for expediting the suit
Is there a way to protect the potential buyer from this kind of potential financial as well as legal harassment? Because then only, people can be assured over to buy major shares (88%) of the building. This is a very crucial decision for us. Please help me with proper legal guidance for the same.
If the building is 100 years or more old then by its depreciation it can be valued at zero value. Hence there is no building value for the property in legal sense and has only land value.
If one of the shareholders isn't willing to jointly dispose the property, if there is a buyer to buy the remaining portion of the undivided share you can proceed with the disposal but if you dont find anyone willing to buy the undivided share then you have no option than to file a partition suit and seek separate possession of share.
1. Partition suit can be filed for particular property also without including other properties but that may not solve the full problem. If the defendant ropes in that other property also in this suit then you would have lost your purpose of excluding it, so think of it to not defeat the purpose of partition suit.
The time taken by court to dispose a partition suit cannot be predicted.
2. Whether major or minor portion how will the buyer identify his share of property purchase by him without giving him demarcations or boundaries marked. If a buyer is buying undivided share in a property then he cannot demolish the building with out the consent of other shareholders, he has to take permission otherwise he has to file a partition suit seeking separate possession of the share of property he purchased.
3. There is no fast track system for partition or civil cases.
1. The heirs who are desirous of selling the property may execute a sale deed in respect of their share in favour of a prospective buyer, who will then have to file a suit for partition to seek the separation of the share sold to him. This is why any prospective buyer would think twice before purchasing a property that is co-owned and whose co-owners are not at consensus to the sale.
2. The heirs who want to sell the property may also file a suit for partition to cull out heir separate share in the property which can then be freely sold by them.
3. In case the prospective buyer attempts to reconstruct/demolish the builder the non-consenting heir may file a suit for injunction to restrain him from doing so. He is sure to face litigation at the hands of the disgruntled heir.
4. The partition suit should not take more than 1-3 years.
