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Ram (Scientist)     31 July 2013

Huf division of properties

Family of Father and 3 Sons. Father died intestate leaving ancestral property to their sons unpartitioned. There has never been a partition in the family after father's death and the brothers lived together. Three brothers ran joint business and elder brother acquired properties in his name using the profits generated from joint family business (the younger brothers were aware of the properties being registered under their eldest brother's name but believed that he'll endow them with equal share if a situation for partition arised). Unfortunately, when the youger brothers were forced out of the house they lived together, they were told, none of the properties belonged to them and they wouldn't get a share of the properties bought by their eldest brother under his name from the joint family revenues.


Questions are:

1. Does the younger brothers have any rights over the share of properties acquired and registered under the name of eldest son while they lived together ?

2. Since there has never been a partition in the family, would the properties acquired under the eldest son will be considered as joint family property (since it was purchased from the revenues of joint business) hence the younger brothers are entitled equal share?

The younger brothers do have some documentation to prove that they contributed to the wealth of the family and the properties were acquired during the contribution timeframe.



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 7 Replies

adv.raghavan (Advocate,9444674980)     31 July 2013

father died intestate, property passes on to  legal heir, i.e., 3 sons, under HINDU SUCCESSION ACT 1956, in your case elder bother by doing joint business he purchased all the intestate properties from you 2, people, and in the process now he is saying u people do not have any share on this. this is  possible only if  he had paid you 2, due consideration for the all the intestate properties he had  purchased, secondly if you 2 had issued relinquish deed in favour of your elder brother, . if both the above said things had not happened you can go for partition suit , then the court will take cognisance  of that.

Ram (Scientist)     31 July 2013

Thanks for the reply. Please note that the contention is not about the ancestral property. The conflict is about the properties newly bought by the elder brother in his name from the profits of joint business operation run jointly by brothers (All the new properties bought were only in the name of eldest son). The ancestral property inherited is of meagre value but the new properties acquired and registered in the name of the eldest brother is of considerable value. Hence the two questions I have raised in the above message has to be answered.

adv.raghavan (Advocate,9444674980)     06 August 2013

for joint family business,  was capital contribution  equal from all u people, or is it fathers business which ur carrying forward, if it is fathers business what was the total capital invested by your father, and after death was there any formal agreement between u people to share profits, any returns were filed for the business after your father demise. if is fathers money u people have to share it equally only the capital part, profits it is upto u people to decide about sharing percentage.failing which it is implied that  you 2 sons have blanket permisson to your brother to take away major profits, which is happend  now.

Ram (Scientist)     07 August 2013

There has been no formal agreement between brothers on the capital contribution and profit distribution. I understand that among brothers, ancestral property left intestate has to be divided equally. However the question is about the acquired property in the name of eldest brother.

The income from ancestral property was meagre and wouldn't have been a major portion of the seed money for the business operations.

My question arises from the context of HUF.

1. Would the eldest brother become the kartha of the house?

2. If so, any property acquired in his name (He had no means of generating all the capital/operational cost required to run the joint business) as the kartha of the house would have to be divided amongst his brothers(The brothers do have enough documentation to prove that they contributed to the acquisition of properties and lived together as a joint family) ?

3. Can the younger brothers claim equal partition of the properties acquired in the name of eldest brother?

adv.raghavan (Advocate,9444674980)     07 August 2013

i am not disputing ur fact that ancestral property had to be divided equally among all brothers, which is inclusive of all profits made out of ancestral properties, but in some cases brothers  use to enter an agreemnt on profit sharing, which cannot be ignored in due process. coming back to your query,as u have stated there is no agreement between u people,all the profits earned out of ancestral property has to be divided equally, yes he is the kartha of the family,any property he has earned out of ancestral propertis can be divided equall, but anything he has acquired on his own cannot be disputed by anybody, if u have documentaion u can very well go for partition suit and claim  your share in his earnings made out of ancestral property,.yes younger brothers are eligible for share in acestral properties , which is inclusive of subsequent earning on that. Partition under Hindu Law, can be total or partial. In total partition all the members cease to be members of the HUF and all the properties cease to be properties belonging to the said HUF

NGOKC (pm)     07 August 2013

 

if you cAn prove that revenue from joint ownership business was not split and provided to you, you can claim for share of revenue.

However not property itself as it has been bought in individual capacity

P Patel   11 September 2015

Dear Ram,

I heave read your case and understood. Same is the dispute/cheating arising amongst my brothers. Elder brother is denying share in property registered under his name , which was accrued from the joint income of family, where all brothers were working together.

Please do contact me so that we can discuss our case and see if solution arises. it has been 2 years since you posted this query. Please also let me know if you proceeded in court of law for justice.

Please contact in below mail ID or give yours.

You seem to be scientist as per designation. Ihave made this account on behalf of my Father, just primary school passed. Even I am scientist in DAE and we can discuss our case to help each other.

patel.npti@gmail.com


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