Attachment of partnership property
Full Text
(1) Save as otherwise provided by this rule, property belonging to a partnership shall not be attached or sold in execution of a decree other than a decree passed against the firm or against the partners in the firm as such.
(2) The Court may, on the application of the holder of a decree against a partner, make an order charging the interest of such partner in the partnership property, and profits with payment of the amount due under the decree, and may, by the same or a subsequent order, appoint a receiver of the share of such partner in the profits (whether already declared or accruing) and of any other money which may be coming to him in respect of the partnership, and direct accounts and inquiries and make an order for the sale of such interest or other orders as might have been directed or made if a charge had been made in favour of the decree holder by such partner, or as the circumstances of the case may require.
(3) The other partner or partners shall be at liberty at any time to redeem the interest charged or, in the case of a sale being directed, to purchase the same.
(4) Every application for an order under sub-rule (2) shall be served on the judgment-debtor and on his partners or such of them as are within India.
(5) Every application made by any partner of the judgment-debtor under sub-rule (3) shall be served on the decree-holder and on the judgment-debtor, and on such of the other partners as do not join in the application and as are within India.
(6) Service under sub-rule (4) or sub-rule (5) shall be deemed to be service on all the partners and all orders made on such applications shall be similarly served.
Plain English Summary
Prohibits attachment of partnership assets for a partner's personal decree, establishing the mechanism of a charging order on the partner's profit share, appointment of a receiver, and partner redemption rights.
Key Legal Elements
- Shielding Firm Property: Partnership assets protected from execution for individual debts of partners.
- Charging Order Mechanism (Sub-rule 2): Court creates a charge on the debtor-partner's share of profits.
- Appointment of Receiver: Receiver collects partner's profit distributions and deposits into court.
- Pre-emption/Redemption by Other Partners (Sub-rule 3): Co-partners can buy out the charged interest to keep business intact.
Practical Note
Protecting Partnerships from Individual Partner Debts: 1. Prohibition of Direct Attachment: Under Rule 49(1), attaching physical partnership machinery or stock-in-trade for an individual partner's personal loan decree is illegal (Addanki Narayanappa v. Bhaskara Krishtappa AIR 1966 SC 1300). 2. Proper Course: Apply under Rule 49(2) for a Charging Order and appointment of a Receiver over his profit distributions.
हिंदी पाठ
(1) इस नियम में अन्यथा उपबंधित के सिवाय, भागीदारी की संपत्ति किसी ऐसी डिक्री के निष्पादन में कुर्क या बेची नहीं जाएगी जो फर्म के विरुद्ध अथवा उस रूप में फर्म के भागीदारों के विरुद्ध पारित डिक्री से भिन्न हो।
(2) किसी भागीदार के विरुद्ध व्यक्तिगत डिक्री का धारक आवेदन करके भागीदारी संपत्ति और लाभों में उस भागीदार के हित पर प्रभार (Charging order) लगवा सकेगा, लाभों में उसके हिस्से के लिए रिसीवर (Receiver) नियुक्त करवा सकेगा, तथा लेखा और जांच करा सकेगा।
(3) अन्य भागीदार प्रभारित हित का मोचन (Redemption) कराने अथवा बिक्री की दशा में उसे क्रय करने के लिए स्वतंत्र होंगे।
(4)-(6) ऐसे आवेदनों की तामील सभी भागीदारों पर की जाएगी।