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Mohandas (General Manager)     22 April 2011

bar on right to alienation in partition

Sirs, Me, my mother and two sisters posess ancestral property got through a partition deed signed by our father(died in 2004) in 1951. The partition deed contains a clause that "since these adjacent plots are our residential places any deed on these plots shall be done only mutually and in the event of someone trying to sell his plot to strangers, the others and their successors will have right to nullify such deeds". The partition deed was signed by my father, his elder brother and a brother of my grandfather. Today when we wanted to sell our plot, we orally offered it to everyone of our family, keeping with the spirit of the clause in the partition deed. No takers were there. But when we tried selling it outside the family, one our relative threatens prospective buyers by showing this clause. His contention is that we cannot sell the plot to someone outside the family even if there are no takers within the family. The only option is for us is to stay in that plot or sell it to other family members at any price decided by them. If this is not acceptable the plot shall lay vacant eternally!

I got contradicting advice from local advocates. One says the clause is valid because it is only a partial restriction of the rights of alienation. The only way is a negotiated settlement because every family member is provided with a right to veto the sale by another! Another advocate says the clause is only a personal covenant based on vicinage. Since all three signatories of the partition died, they are no more residents of the plot and the argument of vicinage is lost. Moreover, the clause is practically an absolute bar on alienation which is against public policy. Both advocates showed me several judgments of various high courts, supreme court and privy council.

Would request everybody to advise me the latest legal position of this issue. Oneof my sister is badly in need of money and see how a mischievous member plays havoc when all others watch helplessly.. Mohandas



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 4 Replies

adv. rajeev ( rajoo ) (practicing advocate)     22 April 2011

First let her issue a notice to the family members that she wants to sell her share for her legal necessity.  If you  are interested to purchase her share contact her within 7 days from the date of receipt of the notice, otherwise if anybody is not interested to purchase the plot then she would sell her share to the third party.

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Mohandas (General Manager)     22 April 2011

Thank you, Adv Rajeev, for your prompt reply. When we offered the plot to everyone ie 11 members of the family, nobody was interested. The member who objects to the sale to a stranger, is prepared to buy the plot at half of the market price! His contention is that the impugned clause do not bind anybody to purchase the plot at market rate. In fact there is nothing in the clause which is binding the family members to purchase - only the right to nullify sale to outsider is provided. Irony is that everybody has a right to spoil the sale but no responsibility to buy. And this precisely is being used against us. This is one point my advocate uses to show that the clause is unenforceable and against public policy. Please comment further.. Mohandas

adv. rajeev ( rajoo ) (practicing advocate)     23 April 2011

whether it is written offer, if not issue notice quoating the rate of the plot.

Mohandas (General Manager)     23 April 2011

Sir, I will do that. Kindly clarify following points also - 1. Whether this clause is legally valid? 2. If a stranger-purchaser is bold enough to take risk and buy the plot, what are the chances of winning an eventual case?.. Mohandas

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