S (consultant) 01 November 2013

Partnership business

I would like to put forth for disussion problem of a Doctor who has been running a hospital . He has been running the hospital since 1958. This hospital was started before him by his father and was taken over by son who is a doctor. His brother also doctor joined the business and formed a partnership firm in 1969. As the hospital functioned in the ground floor in the premises constructed by father. The house tax and electricity bill also is separate in the name of the Hospital, which is a partnership firm run by the 2 doctor brothers whose children (again doctors) are entered in the new partnership deed. I would like to know what is the right of the Doctors who are currently in the partnership , in the building where they run the hospital . Can the other siblings force them to evacuate the hospital .And if there is a reconstruction on the land can the doctors claim right to the space of the hospital in addition to their share in the property by virtue of being of physical possesion of the premises for 50 years.The hospital has been continiously functional over all these years .

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BAALASUBRAMANNYAMM (Advocate) 01 November 2013

It appears that the actual doctor, who started the hospital in the year 1958 was the actual owner of the said hospital building. The brothers two doctors are the sons of actual doctor and the latest the children two doctors are the grand sons of the actual doctor. Hence as a Class-I legal heirs, the children two doctors are entitled the share in the said property. The question of a partnership deed witnesses only to do the business.

T. Kalaiselvan, Advocate (Advocate) 01 November 2013

If the property over which the hospital is constructed and is still functional, was bought by the father of the two doctor brothers and the father died intestate, the property automatically devolves upon the two brothers, their mother and their sisters as legal heirs to their deceased father. This property which is separate entity is earning rental income from the doctors partnership hospital. If the hospital property has been further developed into two or multi-storey building out of the rental income it fetched all the while from the partnership hospital run by two doctor brothers, the entire property becomes Hindu undivided family property under the joint possession and enjoyment of all the legal heirs/representatives, thus the grand children of the father of the doctor brothers gain right to the property by birth as coparceners in the HUF property. Hope now you understand the status of the grandchildren doctors in the property.