Selling share of joint property
Ganesh Ram
(Querist) 09 February 2023
This query is : Resolved
• 5 brothers formed a partnership company.
• Apart from regular business, they bought a property in the name of the company represented by one of the members (the managing director) signing the document.
• Patta is in the name of all the 5 people as shareholders of the company.
• After some years, they wound up the company and distributed the profits between them.
• But they did not do anything with the property.
• After 25 years, 2 of the 5 brothers want to sell the property but the rest including the one who represented as MD are refusing.
• The MD brother says since he has signed the document representing the company he can only sell and the others are not allowed to do any transaction. Is this right?
• Can the 2 brothers go ahead and sell their shares of the unpartitioned property without NOC from the rest, using the partnership deed and the property documents.
kavksatyanarayana
(Expert) 09 February 2023
No. As the company/firm was dissolved, the 5 brothers had equal rights over the property. Hence all the brothers shall divide the property and enjoy as they wish the property. NOC is not correct. Some brothers may relinquish their rights to other brothers on mutual understanding regarding the amount.
Dr J C Vashista
(Expert) 10 February 2023
It is not understood as to how the company property patta was in the name of 5 individual partners ?
The company is already stated to have been dissolved and assets disbursed among partners wherein property was not divided ?
The MD has signed purchase document on behalf of company and not in individual capacity, hence he has "no title, claim or interest" except his share in the subject property.
File a suit for partition of the property through a local prudent lawyer.
Advocate Bhartesh goyal
(Expert) 10 February 2023
Yes ownrship/title of property vests to you all brothers so your brother( ex M.D of company ) alone has no right to sell the property.if mutual settlement is not possible then you need to file partition suit.
