Properties and human
beings are inseparable. With progress and social change over the ages the urge to own property, wealth has acquired demonic proportions. In the present day
world,immovable properties are the most valued assets one can possess.
The desire to own
material possession reared its head in the inquisitive mind of the Stone Age man.Thus
women, children came to be his first personal assets followed by immovable
properties.While literacy and social outlook have elevated the status of women
and children,there has been no change worth the name as to the status of immovable property as the personal asset of the human being. So long as this state of
affairs continues, problems relating to property transfer will persist. From
Stone Age to cement age, it has been a long haul.
What is Partition?
Partition is division
of property held jointly by co-owners. When a property is divided each member
becomes the sole owner of his portion of the property. Each divided property
gets a new title and each sharer gives up his or her interest in the estate in favor
of other sharers.Therefore,partition is a combination of release and transfer
of certain rights in the estate except those which are easements in nature.
Partition is neither a gift nor a transfer of property. It merely breaks a joint right into several
rights. It is not acquisition of property or exchange of property. It is a
combination of release and conveyance of the rights of the property in favor of
individuals. And therefore it can be affected orally. Partition is not transfer
but when it assumes the form of transfer, the intention may be to hoodwink the creditors.
The basic character of
joint Hindu family is that each member has inherited title to the property by
birth.Each member has joint title to the entire property and that joint
enjoyment of the title is converted by partition into separate title of the
individual co-owner for his enjoyment.Therefore, it is now an established fact
that partition is not transfer, but transformation of joint property.
There are some
properties which cannot be divided physically.If physical division is not
possible, partition can still be affected by paying cash or other assets to a
sharer in lieu of his or her share in the property.Such situation arises when
the division of an estate is considered to be dangerous and unreasonable and
when such division dilutes the inherent value of the property, or when the
immovable property is too small for division.
The instrument of
partition is a document by which the co-owners of a property agree to divide
the property among themselves by oral agreement or written agreement or by
arbitration or through court. If a document of release shows that the
executants are to get cash or other assets, the document is an instrument of
partition.The basis of partition is equality. The parties shall share the
property equally.If there is no agreement among the co-owners for amicable division of the property, the only alternative is to sell the property by
mutual consent or by court decree and distribute the sale proceeds among the
co-owners.Any of the co-owners may also enforce partition through Court.
In a partition suit a
court may have decreed partition of the property in the interest of the co-owners.But If it is found that the sale of the property and distribution of the
proceeds to the co-owners is more beneficial, the court can at the request of
the shareholders direct sale of the property and distribution of the proceeds
to the co- sharers.
There are three types
of co-owners:Joint tenants or tenants-in-common; Hindu Joint Family owners or
coparceners; partners of a partnership firm.
Under the Hindu Law in
general everyone being a co-owner in a joint ownership has a right to claim his
share and such right cannot be denied to him if the property is held as joint tenants. Since joint tenancy is unknown to Indian law, there is not much
difference between joint tenancy owners and tenants-in-common.
Christians and Muslims hold properties as tenants-
in-common or as joint tenants and partition of such immovable property can
happen by mutual consent or by partition deed or by court decree or
arbitration.
Partition in Hindu law covers two aspects. One is the
division of the status of the members and the other is the division of the
joint family property. In the former ca e, the members are divided according to
their standing in the joint family and in the latter case division of joint family property into separate shares. Share of a member depends on the status
he enjoys in the family. These are interlinked.Partition must be
according to law.If a minor gets less shares than he is entitled to in law,
the partition is defective and he can re-open the same when he attains
majority. If a member gets more than his share in a property, the excess
received will be treated as a gift.
It is not necessary
that all co-owners agree to partition. When a member desires partition, the
property is divided into two portions one for the separating according to his
status and share and the rest jointly held by others. Though oral partition is
allowed under Hindu Law, it is not preferable as it may give rise to disputes
particularly with respect to immovable properties. It is advisable that oral
partition should be reduced into writing (palu patti). Also, the Income Tax Act
does not recognize oral partition of a Hindu Family property unless the Income
Tax Officer is satisfied with the facts and this is possible only when it is
recorded in partition deed.
Effects of
Partition
When a property is divided into more than two parts, the co-owners of the different portions shall
agree to hold their portions separately as absolute owners and each of them
shall make a grant to release his share from portions given to others.
Partition of joint
property is not an exchange. If it is reduced into writing, it must be
registered in the case of immovable properties. Deed of partition requires
registration. Mere writing of previous partition does not require registration.
Mere list of properties allotted to different co-owners does not require
registration. Partition means collapse of joint ownership. It destroys the
harmony of joint ownership and of possession. A large property falls into
pieces over a generation or two. The land is very much there in bits and pieces
in the name of different owners.
Stamp duty
The Stamp Duty payable
on partition varies from State to State. In Karnataka, it depends on nature of
property. In case of partition of movable property, it is Rupees Two Hundred
and Fifty for each share. If the property is converted for non-agricultural purpose or meant for non-agricultural use, it is Rupees One Thousand for each
share within jurisdiction of Municipal Corporation, Urban Development
Authority,Municipal Councils or Town Panchayats and Rupees Five Hundred per
share in other areas.
The partition of
agricultural land attracts stamp duty of Rs.Two Hundred Fifty for each share.
In case an agreement of partition is executed and the partition follows in
pursuance of such agreement, the stamp duty payable on partition deed is
reduced to the extent of duty paid on agreement; but shall not be less than
Rupees Fifty. The partition should not be mistaken with partnership.
Partnership is coming together of persons, whereas partition is parting of
persons.
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