2020 (3) TMI 3 - HC - Indian Laws

Partition of immoveable properties - dissolution of partnership firms in terms of the Agreement/Family Settlement - suit either for specific performance of what the defendants had agreed/undertaken under the Agreement/Family Settlement or for recovery of possession of or monies as may be due to plaintiffs from defendants. HELD THAT - What the plaintiffs are required to do is a complete overhauling of the plaint and not merely amendment of the plaint. It is thus not deemed appropriate to adjourn the case - The counsel for the plaintiffs however states that the plaintiffs have paid court fees on the plaint and though the plaintiffs on amendment/filing fresh suit, would be required to pay additional court fees but if this suit is disposed of, the court fees paid shall be wasted. The suit and pending applications are dismissed as withdrawn with liberty to sue for enforcement of obligations of the defendants under the Agreement/Family Settlement dated 11th March, 2014 but on the condition that the plaintiffs, along with the fresh proceedings if any file copies of the plaint in the present suit as well as this order and in the fresh plaint/suit so filed, prominently plead the said aspect. A certificate entitling the plaintiffs to refund of court fees paid less ₹ 20,000/-, be issued and handed over to the counsel for the plaintiffs.

Summary

Issues: Suit for partition of immovable properties and dissolution of partnership firms based on an Agreement/Family Settlement dated 11th March, 2014; Interpretation of the Prohibition of Benami Property Transactions Act, 1988; Whether seeking partition again after alleged partition under the Agreement/Family Settlement is permissible; Distinction between seeking partition and recovery of possession; Requirement for plaintiffs to clarify their stance on the partition affected by the Agreement/Family Settlement; Recognition of jointness in coparcenary and partnership; Need for plaintiffs to overhaul the plaint instead of mere amendment; Dismissal of the suit with liberty to sue for enforcement of obligations under the Agreement/Family Settlement.

Analysis:
1. The court addressed the suit filed for partition of immovable properties and dissolution of partnership firms based on an Agreement/Family Settlement dated 11th March, 2014. The judge highlighted that signing an agreement for joint properties does not necessarily make them legally joint, especially under the Prohibition of Benami Property Transactions Act, 1988, which requires compliance with property transfer laws. The court emphasized that if properties have already been partitioned as per the agreement, seeking partition again is not permissible, and the appropriate remedy would be specific performance of the unfulfilled terms of the agreement.

2. The judge also discussed the distinction between seeking partition and recovery of possession, stating that if properties have been partitioned, the focus should be on recovering possession of specific assets rather than seeking a partition. The court stressed the importance of plaintiffs clarifying whether they are bound by the partition effected through the Agreement/Family Settlement or if they claim a share in properties held by others based on legal rights, especially in the absence of a coparcenary or specific pleadings regarding trusteeship.

3. Furthermore, the court highlighted the legal recognition of jointness in coparcenary and the differentiation between partnership firms under the Partnership Act, 1932, and Joint Hindu Family Business Firms not governed by the Partnership Act. The judge emphasized the need for a comprehensive overhaul of the plaint instead of a mere amendment to address the fundamental issues raised in the case, leading to the dismissal of the suit with liberty to sue for enforcing obligations under the Agreement/Family Settlement.

4. Lastly, the court addressed procedural concerns regarding court fees paid on the plaint, allowing for a refund with conditions for filing fresh proceedings related to the Agreement/Family Settlement. The judgment focused on the necessity for clarity, compliance with legal provisions, and a thorough reevaluation of the plaintiffs' claims to ensure proper enforcement of rights under the agreement.