Adjudication

Querist : Anonymous (Querist) 10 September 2011 This query is : Resolved
A property was bought by six partners in 1973, and was managed buba firm registered in 1974. Mutation entry name was entered directly of the same. Two partners were managing partners. The two of them have formed a co. And sold the land to the co. In which one partner owns 50 % and wife of the other partner owns 50 % . now they have sold property on peanuts price to themselves. But they have taken adjudication from collector office for reducing stamp duty and sold property worth 100 rs for only 2 rs. And paid stamp duty on 2 rs. But it is adjudicated. Now what can do.

Follow Query

Report Abuse

Devajyoti Barman (Expert) 10 September 2011
In express consent of other partners the two partners can not sell the property to the company specially when the act of those partners is in conflict with the interest of the firm.
The Firm should immediately file a suit for dissolution of the firm or for expulsion of those firms and ask for declaring the sale deed as null and void.

The said two partners can also be accounted for the loss caused to the firm and directed to make good the loss from their personal assets.

Querist : Anonymous (Querist) 10 September 2011
But now they are saying that we have paid fair price as there is adjudication attached made by collector. Also can I file criminal complaint

ajay sethi (Expert) 10 September 2011
were the 2 partners authorised to sell property belonging to firm . ?

as rightly advised by Mr barman if they have not been authorised by the firm they cannot sell property and you can challenge the sale . merely because fair price is paid is immaterial .

M/s. Y-not legal services (Expert) 10 September 2011
am also agree with mr.barman..

prabhakar singh (Expert) 10 September 2011
Mr. Barman advise is perfect,the sale was made without consent,the adjudication of collector is limited to collection of stamp duty which relates to state but is not binding on partners without whose presence the adjudication order was passed.

All remedies shown forward by Mr.Barman are available to you and adjudication of collector can not come in the way of partners who did not consent the sale.The activity of adjudication would be deemed as collusive.

When they have acted wrong then naturally
they will say you wrong things.