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Ghulam Qadir Mir VS UT of J&K - Current Civil Cases
).Ghulam Qadir Mir VS UT of J&K - Current Civil Cases
, 2024 0 Supreme(J&K) 75).References:- Use of property in trade or commerce: 2024 0 Supreme(Kar) 436, 2023 0 Supreme(Bom) 1442, 2023 0 Supreme(Cal) 1359, 2024 0 Supreme(All) 875, 2025 0 Supreme(Bom) 751,
Ghulam Qadir Mir VS UT of J&K - Current Civil Cases
, 2024 0 Supreme(J&K) 75, 2023 0 Supreme(Bom) 1668- Transfer procedures and legal requirements: 2023 0 Supreme(Del) 5692, 2023 0 Supreme(Del) 4884
In legal disputes involving shared ownership, such as partition cases, questions often arise about the fate of immovable property. A common query is: Under what circumstances can an immovable property in a partition case be sold by auction? This issue is particularly relevant when the property belongs to entities like registered trade unions or is tied to commercial activities. While partition suits aim to divide assets equitably, courts may order an auction sale if physical division is impractical or prejudicial to the owners' interests.
This blog post delves into the legal framework, drawing from statutory provisions and case insights. We'll examine trade unions' capacity to handle property, the role of commercial use, and procedural requirements. Note: This is general information based on legal sources and not specific legal advice. Consult a qualified lawyer for your situation.
In partition suits under the Code of Civil Procedure (CPC), particularly Sections 44-54 and Order 26 Rule 4, courts assess whether immovable property can be divided without loss of value. If partition in kind is not feasible—due to the property's nature, size, or location—the court may direct a sale by public auction to ensure fair distribution of proceeds among co-owners.
Key circumstances include:- Impracticability of division: When splitting the property would significantly reduce its value or utility.- Consent of parties: Though not always required, majority consent can facilitate auction.- Court's discretion: The judge evaluates prejudice to shares and orders auction if equitable.
However, special rules apply if the property is owned by a body corporate like a trade union or used in commerce.
A registered trade union under the Trade Unions Act, 1926, holds a unique status. Section 13 establishes it as a body corporate with perpetual succession, enabling it to acquire, hold, and transfer property, including immovable assets 2019 0 Supreme(SC) 508. This legal personality means a trade union can sell its own immovable property.
In a partition case involving trade union property, this capacity implies the union can participate in or authorize an auction sale, provided it aligns with internal governance.
A registered trade union is a body corporate with perpetual succession and the power to acquire, hold, and transfer property2019 0 Supreme(SC) 508.
Not all immovable property qualifies equally for auction or commercial court jurisdiction. Several sources highlight that for disputes to be commercial, the property must be used exclusively in trade or commerce.
In partition cases, if the property is exclusively used in trade or commerce (e.g., union office or commercial space), the dispute may fall under commercial courts, potentially expediting auction processes. Conversely, residential or non-commercial use may keep it in civil courts 2024 0 Supreme(Kar) 436 2023 0 Supreme(Bom) 1442 2023 0 Supreme(Cal) 1359 2025 0 Supreme(Bom) 751 2024 0 Supreme(All) 875 2023 0 Supreme(Bom) 1668.
Can a trade union sell its immovable property? Generally, yes, if used exclusively in trade or commerce and via proper legal channels. Otherwise, restrictions apply.
Even in auction sales during partition, ownership transfer demands strict compliance:- Registered sale deed: Essential for conveying title. Agreements to sell do not transfer ownership unless followed by a stamped, registered deed 2023 0 Supreme(Del) 5692 2023 0 Supreme(Del) 4884.- The agreement to sell with respect to immovable property is enforceable. Agreement to sell is a complete contract between the parties. But it requires execution via deed 2017 0 Supreme(P&H) 1274.- No GPA or MOU sufficiency: Power of Attorney or MOUs create rights but not title transfer 2023 0 Supreme(Del) 5692 2023 0 Supreme(Del) 4884
Ghulam Qadir Mir VS UT of J&K - Current Civil Cases
.As per the alleged agreement to sell dated 07.10.2008... illustrates scrutiny on transaction validity, like source of funds 2018 0 Supreme(Del) 756.
For trade unions, sales must follow procedural requirements, governing body approval, and property laws 2019 0 Supreme(SC) 508. Special laws, e.g., Jammu and Kashmir Migrant Immovable Property Act, may void unauthorized transfers
Ghulam Qadir Mir VS UT of J&K - Current Civil Cases
2024 0 Supreme(J&K) 75.In practice:- Obtain union resolution for sale.- Ensure auction publicity for best price.- Comply with stamp duty and registration.
The transfer of immovable property by a trade union (or any entity) requires a deed of conveyance (sale deed) that is duly stamped and registered as per law2023 0 Supreme(Del) 5692 2023 0 Supreme(Del) 4884.
Immovable property in partition cases can typically be sold by auction when physical division is impractical, subject to court discretion. For trade unions, their body corporate status under the Trade Unions Act, 1926, grants capacity to sell, especially if commercially used 2019 0 Supreme(SC) 508. However, success hinges on exclusive trade/commerce use for jurisdiction, registered deeds for validity, and procedural compliance 2023 0 Supreme(Telangana) 21 2019 0 Supreme(SC) 508 2020 0 Supreme(UK) 505).
Key Takeaways:- Trade unions can sell immovable property as bodies corporate [JK JUTE MILL MAZDOOR MORCHA VS JUGGILAL KAMLAPAT JUTE MILLS COMPANY LTD. THROUGH ITS DIRECTOR - 2019 0 Supreme(SC) 508.- Commercial use essential for certain disputes 2016 0 Supreme(Guj) 1202.- Auction in partition: When division prejudicial.- Always use registered sale deeds; seek professional advice.
This framework promotes fair resolutions while protecting rights. For tailored guidance, contact a legal expert.
Therefore, it cannot be said that the agreement is as such relating to immovable property used exclusively in trade or commerce. ... It may be noted that important words used in the relevant provisions are “immovable property used exclusively in trade or commerce”. ... As observed hereinabove, at the time of filing of the suit and even so pleaded in the plaint, the immovable#HL....
A dispute relating to immovable property per se may not be a commercial dispute. But it becomes a commercial dispute, if it falls under sub-clause (vii) of Section 2(1)(c) of the Act viz. “the agreements relating to immovable property used exclusively in trade or commerce”. ... As rightly pointed out by the High Court, there is nothing on record to show that at the time when agreement to sell#HL....
It thus makes it clear that a dispute relating to immovable property simplicitor will not amount to a commercial dispute unless it is also actually used exclusively in trade and commerce. 17. ... The trial court is required to ascertain the nature of the immovable property mentioned in the agreement if being exclusively used for trade or commerce as on the date of the agreement and any ....
Therefore, it cannot be said that the agreement is as such relating to immovable property used exclusively in trade or commerce. ... It may be noted that important words used in the relevant provisions are “immovable property used exclusively in trade or commerce”. ... As observed hereinabove, at the time of filing of the suit and even so pleaded in the plaint, the immovable#HL....
A power of attorney is not an instrument of transfer in regard to any right, title or interest in an immovable property. ... It is thus clear that a transfer of immovable property by way of sale can only be by a deed of conveyance (sale deed). In the absence of a deed of conveyance (duly stamped and registered as required by law), no right, title or interest in an immovable property can ....
in trade or commerce whereas in the present case the immovable property is not used exclusively in trade or commerce. ... As noted above Section 2(1)(c)(vii) of the Commercial Courts Act requires that for a dispute to be a commercial dispute with respect to agreements relating to immovable property, the immovable property has to be used exclusively in ....
Once no right in the immovable property was vested in the petitioners pursuant to the agreement to sell, the same could not have formed the basis for filing a suit seeking ownership over the suit property. ... The petitioners, admittedly, had filed the suit on the basis of an agreement to sell, which as per law does not confer any title or ownership qua the immovable property#H....
Once no right in the immovable property was vested in the petitioners pursuant to the agreement to sell, the same could not have formed the basis for filing a suit seeking ownership over the suit property. ... The petitioners, admittedly, had filed the suit on the basis of an agreement to sell, which as per law does not confer any title or ownership qua the immovable property#H....
A dispute relating to immovable property per se may not be a commercial dispute. But it becomes a commercial dispute, if it falls under sub-clause (vii) of Section 2 (1) (c) of the Act viz. “the agreements relating to immovable property used exclusively in trade or commerce”. ... f] The property is not used for trade or commerce at present : In view of judgments cited ....
It is trite that transfer of immovable property by way of sale can only be by a Deed of Conveyance/Sale Deed, duly stamped and registered as required by law and in the absence of this, no right, title or interest can be transferred in an immovable property. ... Aggarwal (supra), wherein the Court has held that while documents such as Agreement to Sell/GPA do not confer ownership rights as held in Suraj La....
(vii) agreements relating to immovable property used exclusively in trade or commerce; (c) "commercial dispute" means a dispute arising out of - The question therefore would be that, in the instant case though the parties have entered into a sale transaction of the immovable property and presently in the suit the registration of a Mortgage Deed pertaining to the immovable property is sought, whether the immovable property involved could be considered as being used exclusively....
(vi) construction and infrastructure contracts, including tenders; (vii) agreements relating to immovable property used exclusively in trade or commerce;
(c) As per the alleged agreement to sell dated 07.10.2008, the petitioner had allegedly entered into an agreement with the respondent No. 1 to sell his land bearing No. 10/1 (7-14) Village Dhumaspur, Tehsil and District Gurugram, Haryana to total consideration of Rs. 3,00,00,000/- in which Rs. 40,00,000/- was paid in cash at the time of the agreement which has not been explained by the respondent No. 1 as to how he came into possession of such a huge cash without any ITR to back this humungous....
The agreement to sell with respect to immovable property is enforceable. Agreement to sell is a complete contract between the parties. Defendants had received a sum of Rs.5,00,000/- towards earnest money. They had promised to sell the shop to the plaintiff on receipt of balance sale consideration.
Therefore, by no stretch of imagination it can be said to be a dispute arising out of the agreements relating to immovable property used exclusively in trade or commerce. As observed hereinabove the suit is instituted for a declaration that the sale deed executed by the appellant herein-original defendant No. 1 in favour of the respondent No. 4 herein-original defendant No. 2 be declared illegal and also for permanent injunction with respect to the land in question. Merely be....
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