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Report No. 86

3.6. Kinds of sales under the Act.-

It is necessary to bring out a recurrent theme of the Act-sale of the property or of a share. There are several kinds of sales contemplated by the Act, firstly, there is the sale under section 2. The sale can be ordered on the application of share-holders interested in a moiety or upwards, but the Court is not bound to grant the application. Next, there is the sale under section 3. If any other share-holder applies to purchase the share or shares of the shareholders who desire a sale by public auction under section 2, they, have a right to do so. Here the sale is mandatory, but it is a sale only of the share or shares of those who applied under section 2.

This is not a public sale,1 but only a sale amongst2 the co-sharers. The third category of sales is that contemplated in section 4, whereunder a stranger purchaser (transferee) of a share can be compelled to sell his share to a member of the family applying for such purchase. Here the Court is bound to grant the application, and the sale is, thus, mandatory. The sale is not of the entire property, but only of the share of the transferee. It is not held by public auction, being merely a sale from the transferee to the applicant.

1. See section 3(2).

2. Hari Charan v. Fakir Chandra, (1936) 40 CWN 955.



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