Exploring the complexities of a legal battle over Partition and Rendition of Accounts, specifically focusing on disputed shares in Durga Enterprises Pvt Ltd. This case involves intricate details surrounding the transfer and ownership of assets, with implications for all parties involved in the proceedings before the Delhi High Court.
Facts
- Plaintiffs filed a suit for Partition and Rendition of Accounts of the assets of the HUF
- Defendant No.3 transferred all his shares in Durga Enterprises Pvt Ltd to Defendant No. 6
- Defendant No. 2 HUF’s shareholding in Durga Enterprises Pvt Ltd was revealed during a different court case
- Defendant No. 6 sold the shares to Pyramid Commodities Pvt. Ltd for a substantial sum
- Plaintiffs seek amendments to include subsequent buyers of the HUF shares
- Defendant No.3 is accused of fraudulently transferring HUF shares in his favor
- Plaintiffs seek addition of prayer clauses for Declaration of title to shares or sale proceeds
Arguments
- Plaintiff No 4, husband of Plaintiff No 3 and father of Plaintiff No 1 & 2, was aware of the proceedings in CS No 59345/2016 as a defendant.
- Plaintiffs are attempting to include time-barred reliefs by seeking to amend shares in Durga Enterprises Pvt Ltd.
Analysis
- Plaintiff Nos. 1 to 3 sought to insert para 4A in the plaint to explain the chain of transactions with respect to the shares of the defendant No. 2 HUF in Durga Enterprises Pvt Ltd.
- Details of subsequent transfers were provided, indicating involvement of Pyramid Commodities Pvt. Ltd and Shri Surender Kumar Gupta in purchasing the shares.
- Plaintiff Nos. 1 to 3 attempted to substitute paragraph 15 of the plaint to address defendant No. 10 filing a case regarding shares in Durga Enterprises Pvt. Ltd.
- Shares allegedly belonging to defendant No. 2 HUF were stated to have been illegally transferred from 01.10.2010 to 30.09.2011, before the present suit was filed.
- The shares meant to be under defendant No. 2 HUF were purportedly gifted by the Karta/ defendant No. 3 to his sister, Ms. Archana Dalmia.
- The right of the Karta to alienate Joint Hindu Family property for legal necessities is well-established based on previous Supreme Court judgments.
- Applications for amendment of pleadings should be rejected if the proposed amendments alter the fundamental character of the suit.
- Coparceners have the right to challenge alienations of Joint Hindu Family property post-alienation.
- Amendment seeking relief of Declaration in a suit for Partition and Possession is impermissible as it changes the nature of the suit.
- Plaintiff can only claim partition of HUF assets as of the date of filing the suit.
- Plaintiff Nos. 1 to 3 can seek cancellation of the transfer of shares belonging to defendant No. 2 HUF.
- Amendments to the plaint sought by plaintiff Nos. 1 to 3 cannot be permitted.
- Introducing fresh pleas and reliefs regarding shares already alienated before the case was filed would enlarge the scope of the suit.
Decision
- Plaintiffs sought directions for maintaining status quo on remaining amount from transfer of shares in Durga Enterprises Pvt Ltd
- Plaintiffs’ application for amendments to the plaint regarding shares in Durga Enterprises Pvt Ltd was disallowed
- Current application for directions dismissed
- Case to be listed on 08.07.2024 for framing of issues
Case Title: AMAARA & ORS. Vs. MRIDULA DALMIA & ORS. (2024:DHC:4209)
Case Number: CS(OS)-380/2017
