The Partition Act, 1893
The Partition Act, 1893 is a central law enacted by Act No. 4 of 1893 to amend the law relating to partition. It lets a court, in a partition suit, order sale of property instead of physical division in certain cases, sets out how co-sharers can buy shares at a valuation, and gives special protection where an outsider seeks partition of a family dwelling-house.
What this law governs
The Partition Act, 1893 is a central law that applies to partition suits. It deals with situations where property owned by multiple shareholders cannot reasonably or conveniently be divided, and where sale of the property and distribution of the sale proceeds would be more beneficial.
It also states that nothing in the Act affects any local law providing for the partition of immoveable property paying revenue to Government.
Who it affects
The Partition Act, 1893 matters to:
- co-owners or shareholders in property involved in a partition suit
- members of an undivided family living in a dwelling-house
- a person who has bought a share in a family dwelling-house and then sues for partition
- parties under disability, acting through an authorised person
Main powers given to the court
In a partition suit, the court may direct a sale of the property and distribution of the proceeds if:
- the property cannot reasonably or conveniently be divided
- the number of shareholders makes division difficult, or
- there is any other special circumstance
- a shareholder, or shareholders together, interested to the extent of one moiety or upwards request a sale
The court may also:
- order valuation when another shareholder wants to buy the share of the party asking for sale
- sell to the shareholder who offers the highest price above the court's valuation if more than one shareholder wants to buy
- require unsuccessful applicants to bear the costs of their application if no one is willing to buy at the valuation price
Special rule for family dwelling-houses
Where a share in a dwelling-house of an undivided family has been transferred to a person who is not a family member, and that transferee sues for partition, the court must value that share and direct its sale to a family member who is also a shareholder if such family member undertakes to buy it.
If more than one family member wants to buy, the highest offer above valuation is to be preferred.
Sale procedure and legal effect
Key points on sale are:
- every sale under section 2 is subject to a reserved bidding fixed by the court
- shareholders may bid at the sale on terms the court considers reasonable
- if a shareholder and a non-shareholder bid the same amount, the bid is treated as that of the shareholder
- an order for sale under section 2, 3 or 4 is deemed to be a decree
- the court may order part of the property to be partitioned and the rest sold
- the Act also applies to suits instituted before its commencement if no scheme for partition had been finally approved by the court
Extent
The Partition Act, 1893 extends to the whole of India.
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Common questions
Can a court order sale instead of dividing the property in a partition case?
Yes. The court may direct a sale and distribution of the proceeds if the property cannot reasonably or conveniently be divided, or because of the number of shareholders or any other special circumstance, and if shareholders interested to the extent of one moiety or upwards request a sale.
If one co-owner asks for sale, can another co-owner buy that share instead?
Yes. If a shareholder applies for leave to buy at a valuation the share of the party asking for sale, the court must order a valuation and offer the share to that shareholder at the price so fixed.
What happens if an outsider buys a share in a family house and files a partition suit?
If the share is in a dwelling-house belonging to an undivided family, and the transferee is not a family member, the court must value that share and direct its sale to a family member who is also a shareholder if that family member undertakes to buy it.
Can the court split some property and sell the rest?
Yes. In a partition suit, the court may make a decree for partition of part of the property and a sale of the remainder under the Partition Act, 1893.