In 1893, the Partition act was enacted to provide for where the division of the property cannot be reasonably or conveniently rendered that sale of the property and distribution of proceeds would be more beneficial for all the shareholders. The court may direct the sale of the property and the distribution of deeds.
1. Section 2 Power of the Court to Order Sale instead of Division in Partition
Before the commencement of this act, in any suit for the partition where a decree of partition might have been made the court thought that by the nature of the property and the number of shareholders involved in the suit, a division of suit could not reasonably or conveniently be made and that a sale of the property and distribution of proceeds would be more beneficial for all the shareholders. The court, if it may think fit in a suit, would direct the sale and distribution of proceeds if one of the shareholders were interested.
2. Section 3 Procedure when the shareholder undertakes to buy
In any case in which the court is requested to direct the sale under section 2 of this act, and any other shareholder applied to buy at the valuation the share or shares of the party or parties for a sale the court shall order valuation of the shares at the price it so ascertains and may give all the necessary and proper direction in that behalf. If two or more shareholders apply to buy shares, then the court shall sell it to the one who offers to pay the highest amount above the valuation set by the court. If no shareholder is willing to buy the shares at the ascertained price, then applicants shall pay all costs of or incidents to application.
3. Section 4 Partition Suit by Transferee of Share in Dwelling- House
Dwelling-house is referred to as a house used for residence rather than a business. Where a share of a dwelling-house belonging to an undivided family is transferred to a person who is not a member of the family, and such a person sues for partition only then section 4 is applicable. If a family member or two or more members of the family being the shareholders undertake to buy such share from the transferee the court shall evaluate such share which deems fit and direct the sale of such share to the shareholder. In the case or two or more members, the court shall follow the procedure prescribed under section 3 of this act.
4. Section 6 Reserved Bidding and Bidding by Shareholders
Any sale as per section 2 of this act is subject to silent bidding, and the amount of such bidding shall be set by the court and be varied from time to time. Any shareholder shall be at liberty to bid at sale on such terms as to non-payment of deposits or as to setting off for the purchase money instead of paying the same to the court may seem reasonable. If two or more shareholders advance the same sum at any bidding of such sale, such bidding shall be deemed to be the bidding of the shareholder.
5. Section 9 Saving of Power to Order Partly Partition and Partly sale
In any suit for partition under this act, if the court finds it suitable to the case, it shall make a decree for the partition of the part of the property to which the suit is related to and a decree for sale for the rest of the property under this act.
6. Section 10 Application of Act to Pending Suits
This act shall apply to suits instituted before the commencement, in which the court has finally approved no scheme for the partition of the partition.