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2018 Supreme(Del) 694

IN THE HIGH COURT OF DELHI AT NEW DELHI
VALMIKI J.MEHTA, J.
M/S Gupta International & Ors. – Petitioners
Versus
Ashok Kumar Singhal & Anr. – Respondents
CS(COMM) No. 1666 of 2016
Decided On : 18-04-2018

Advocates Appeared:
For the Petitioner:Mr. T.K. Ganju, Sr. Advocate with Mr. Aquib Ali and Mr. Manik Ahluwalia, Advocate
For the Respondents:Mr. P.D. Gupta, Sr. Advocate.

Headnote:

Transfer of Property - Partnership Dispute - Section 19(2)(g) of the Partnership Act, 1932 - Balance Sheets - Consent and Agreement - Power of Attorney - Validity of Transfer - Irrevocable Power of Attorney - Devolution of Interest - Doctrine of Part Performance

Fact of the Case:

The suit involved a dispute over the transfer of a property by a partner of a partnership firm to another partner without the consent of the plaintiff. The plaintiffs sought declaration, possession, mesne profits, and injunction.

Finding of the Court:

The court found that the transfer of the property was done with the knowledge, consent, and agreement of the plaintiff based on the examination of the Balance Sheets, the Retirement-cum-Partnership Deed, and the Memorandum of Settlement. The court dismissed the suit, holding that the plaintiffs were not entitled to the reliefs claimed.

Issues: The main issue was whether the transfer of the property was done with the consent and agreement of the plaintiff. Other issues included the construction of a new building on the property, the status of the plaintiff as a dormant partner, and the relief sought by the plaintiffs.

Ratio Decidendi: The court held that the transfer of property was valid based on the examination of the Balance Sheets, the Retirement-cum-Partnership Deed, and the Memorandum of Settlement. The court also discussed the validity of the transfer under Section 53A of the Transfer of Property Act, 1882, Section 202 of the Indian Contract Act, 1872, and the devolution of interest pursuant to a Will.

Final Decision: The suit was dismissed, and the parties were left to bear their own costs.

JUDGMENT :

VALMIKI J. MEHTA, J.

1. This is a suit for possession, mesne profits, cancellation of documents etc filed by three plaintiffs. Plaintiff no.1 is a partnership firm M/s Gupta International. Plaintiff nos. 2 and 3, and who are husband and wife, are partners of the plaintiff no.1 partnership concern. Defendant no.1 is the erstwhile partner of plaintiff no.1/partnership firm, defendant no. 2 (also an erstwhile partner) is the transferee of the suit property being Shop No.4 (7ft.x 30ft.) and Shop No. 5 (9ft. x 30 ft.) with roof rights built on Plot nos. 31 and 32, out of Khasra No.4/2, Village Hastsal, Delhi, in a colony known as Arya Samaj Road, Block No.-C, Uttam Nagar, New Delhi. By the suit, plaintiffs have prayed for declaration that plaintiffs are the joint owners of the suit property and that it should be declared that the documentation dated 3.7.2000 executed by defendant no.1 in favour of the defendant no.2 with respect to the suit property are null and void. A decree for possession is also prayed with respect to the suit property. Relief of grant of mesne profits/damages of Rs.1,65,000/- is prayed with further relief sought of mesne profits pendente lite and future till recovery of possession. Perpetual injunction is also prayed from restraining the defendants from further alienating etc of the suit property.

2. The case of the plaintiffs is that on 16.5.1998 a Partnership Deed was entered into between plaintiff no.2/ Smt. Bimla Gupta, defendant no.1/Sh. Ashok Kumar Singhal and defendant no.2/Smt. Bimla Aggarwal. This partnership was engaged in the business of export/import, trading/distribution in gold, bullion, jewellery or other items as may be mutually agreed upon. Defendant no.1 was pleaded to be an active partner of the partnership firm for plaintiff no. 2 and defendant no. 2 being dormant partners. The suit property was purchased by the partnership firm on 22.1.1999 in terms of the Sale Deed dated 22.1.1999 for a total consideration of Rs.3,40,000/-. After the purchase of the suit property, it is pleaded that a new 3½ storied building was constructed on the plot. Defendant no.2 had expressed her desire to retire from the partnership firm, and hence she retired on 15.6.2000, as per the Retirement Deed entered into. In terms of the Retirement Deed, the defendant no.2 received a sum of Rs.73269.80/- in full and final settlement of all her claims in the assets of the partnership firm. This amount of Rs. 73269.80/-was paid to the defendant no.2 by means of a cheque. On account of retirement of defendant no.2 a new Partnership Deed dated 16.6.2000 was entered into between plaintiff no.2 and defendant no.1. During the continuance of this partnership, it is pleaded that defendant no.1 in a most dishonest manner and with conspiracy/collusion with defendant no.2 so as to deprive the rights of the plaintiff no.2 in the suit property un-authorisedly and acting against the terms of the partnership deed transferred to the defendant no. 2 rights in the suit property by means of documentation dated 3.7.2000 for consideration of Rs.3,70,000/-. The documentation dated 3.7.2000 executed by defendant no.1 in favour of defendant no.2 were registered Power of Attorney, Agreement to Sell and Purchase, possession letter, receipt, affidavit and a Will. It is pleaded that plaintiff no.2 had no knowledge of this alleged sale/transfer by the defendant no.1 in favour of defendant no.2. Defendant nos. 1 and 2 are related to each other as brother-in-law and sister-in-law and who have caused the illegal transaction of transfer of the suit property and this transaction is void as against the plaintiffs. It was also pleaded that disputes had arisen between the parties in the year 2002 on account of defendant no.1 being removed from the directorship of a company M/s Gupta Jewellers Pvt. Ltd., and in which company the plaintiff nos. 2 and 3 were the other shareholders. The relationship between the parties therefore became strained and bitter.



























































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