and respondent.

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Partnership Act, 1932: s. 29(2) – Right of transferee under heirs of partner of dissolved partnership – partnership of two brothers being co-owners of property dissolved due to death of one of them – Heirs of deceased partner transferring suit property – Right of transferee in possession to obstruct delivery of possession to auction purchaser in execution of decree in a suit for recovery of dues against erstwhile partnership – Held, partnership having stood dissolved after death of one partner, his heirs could transfer the property, and transferee having been put in possession had right to obstruct delivery of possession to auction purchaser – Code of Civil Procedure, 1908 – Order 21, r.97. Two brothers being co-owners of certain property formed a partnership. One of them died later and with that the partnership firm stood dissolved. Legal heirs of the deceased partner transferred the suit property through a sale deed to the predecessor-in-interest of the respondents. Thereafter a third party filed a suit for recovery of certain amount against the said partnership firm. The vendee was not a party to the said suit. The suit was decreed and the suit property was auctioned in execution of the decree to the appellant, who claimed delivery of possession. The vendee under the sale deed obstructed thereto and the appellant-auction purchaser filed an application for removal of obstruction. The executing court dismissed the application holding that legal heirs of deceased partner could sell the property and the respondents were lawful owner thereof. The appeal of the auction purchaser was dismissed so also was his second appeal. In the instant appeal filed by the auction purchaser it was contended on his behalf that respondents not being the legal heirs of the dissolved firm they did not derive any share and as such they had no right to offer resistance. =2007 AIR 1501, 2006(10 )Suppl.SCR1234, , 2006(14 )SCALE75 , =Dismissing the appeal, the Court HELD:1.1. A distinction exists between the right of a partner to sell a property during subsistence of the partnership and the right of an erstwhile partner to sell the property of the firm after it stood dissolved. In the instant case, the partnership stood dissolved on the death of one partner, whose heirs and legal representatives, therefore, could transfer the property at least to the extent of their own share. [1236-G-H] Addanki Narayanappa and Anr. v. Bhaskara Krishnappa (dead) and thereafter his heirs and Ors., AIR (1966) SC 1300, referred to. 1.2. It has been found as of fact by all the three courts below that after purchasing the property from the heirs and legal representatives of the deceased partner, the respondents had been put in possession and they had been residing therein when the auction sale was effected. They had caused some improvements and a new building had also been constructed by them. As the suit was filed after the deed of sale was executed and registered, the respondents predecessor, in interest was a necessary party. He was not arrayed as a party in the suit. He having been found to be in possession of the property as on the date when the delivery of possession of the property was sought to be effected, a `fortiori’ he had a right to obstruct thereto. B.V. Deepak (NP) for the Appellant. C.S. Rajan, Fazlin Anam and E.M.S. Anam for the Respondent.

CASE NO.: Appeal (civil) 10588 of 1995 PETITIONER: M.V. Karunakaran Appellant RESPONDENT: Krishan Respondent DATE OF JUDGMENT: 15/12/2006 BENCH: S.B. Sinha & Markandey Katju JUDGMENT: J U D G M E N T S.B. SINHA, J : Auction purchaser is the appellant before us being aggrieved by and dissatisfied with a judgment and order dated … Continue reading

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