If you are stuck in such a situation, here is what to do.

A young man named Rohan is seeking guidance regarding a complex family dispute involving his father, Mr. Anil Verma, and his uncles. The issue revolves around a business and an ancestral property located in the city of Aligarh.

Decades ago, Mr. Anil Verma and one of his brothers started a small hardware business. A third brother joined them later, while the fourth sibling was never involved. Over the years, the business became moderately successful. About ten years ago, the brothers separated to pursue their individual careers and businesses.

Recently, Mr. Verma’s siblings have started demanding a share in the profits and assets of his current business. Initially, Mr. Verma provided some financial help to keep the peace, but he stopped when their demands became excessive. In retaliation, his brothers forcefully shut down his shop, prompting him to file a police complaint.

The situation is complicated by two key factors. First, the trade license for the business has always been exclusively in Mr. Anil Verma’s name since its inception. Second, the shop and Mr. Verma’s family home are built on a piece of undivided ancestral land. While all siblings have an equal right to the ancestral land, it has never been formally partitioned. Mr. Verma and one of his brothers have already constructed their houses on parts of this land, and now the other siblings are laying claim to the specific portion where Mr. Verma’s house and business are located.

Advice in such cases

Navigating such family disputes requires a careful understanding of the distinction between business ownership and property rights.

• Business Ownership vs. Property Rights: The dispute has two separate legal dimensions: the ownership of the business and the partition of the ancestral property. While the business is physically located on the ancestral property, its ownership is a distinct issue determined by factors like its registration, funding, and operation.
• Strength of the Trade License: The fact that the trade license has always been in Mr. Anil Verma’s name is a significant piece of evidence in his favour, suggesting he is the sole proprietor. This, along with tax records and bank statements in his name, strengthens his claim over the business as a separate entity from any family arrangement.
• Ancestral Property Claims: All legal heirs have an equal and undivided right to the ancestral property by birth. The fact that the shop is on this land does not automatically give the siblings a right to the business itself, but it does give them a right to a share in the land. The primary legal remedy here is a suit for partition to divide the property fairly among all co-owners.
• Self-Acquired Structures on Ancestral Land: The house and shop constructed by Mr. Verma using his own funds may be considered his self-acquired property. During a partition, the court often tries to allot the portion of land with the self-acquired structure to the person who built it, with the value of the land being adjusted against their share.
• Consult with Lawyer: The very basic and important step to start is talk to Lawyer / advocate. You should not hesitate in paying his consultation fee i.e. might be in range of Rs. 10,000 to 50,000 depends case to case. He is helping you in this situation of come out. He is expert in the domain and can help you explain the procedure which you might have never explored. A good lawyer can get the issues resolved much faster than you think.

Applicable Sections of Law

Several laws are pertinent to this situation:

• The Hindu Succession Act, 1956: This act governs the inheritance and partition of ancestral property among Hindu families. It establishes the rights of all co-parceners (in this case, the siblings) to an equal share in the property.
• The Indian Partnership Act, 1932: The siblings might argue that the original business was an informal partnership. However, the burden of proof would be on them to establish the existence of a partnership agreement, either written or implied through conduct.
• Bharatiya Nyaya Sanhita, 2023 (BNS): The act of forcefully shutting down the shop can attract criminal charges. Relevant sections could include:
  • Section 139 (Wrongful Restraint): For preventing Mr. Verma from entering his place of business.
  • Section 321 (Criminal Trespass): For unlawfully entering the property to cause annoyance or commit an offence.
  • Section 324 (Mischief): For causing wrongful loss or damage to the property or business.
• Bharatiya Nagarik Suraksha Sanhita, 2023 (BNSS): Procedural law, particularly provisions related to preventing a breach of peace (e.g., Section 164), may be invoked by the police.

If you are the complainant

If you are in Mr. Verma’s position, here are the steps to consider:

• Gather Documentation: Collect all documents that establish your sole proprietorship of the business. This includes the trade license, GST registration, income tax returns, bank statements, purchase and sale invoices, and any other official papers in your name.
• File a Partition Suit: To resolve the property dispute permanently, it is advisable to file a civil suit for the partition of the ancestral property. This will lead to a court-mandated division of the land among all legal heirs.
• Seek an Injunction: You can file an application for a temporary injunction along with the partition suit to restrain your siblings from interfering with your possession of the house and the peaceful operation of your business until the case is decided.
• Pursue the Criminal Complaint: Actively follow up on the police complaint filed for the forceful shutdown of your shop. Provide evidence and witness statements to the police to ensure a charge sheet is filed.
• Consult with Lawyer: The very basic and important step to start is talk to Lawyer / advocate. You should not hesitate in paying his consultation fee i.e. might be in range of Rs. 10,000 to 50,000 depends case to case. He is helping you in this situation of come out. He is expert in the domain and can help you explain the procedure which you might have never explored. A good lawyer can get the issues resolved much faster than you think.

If you are the victim

If you are one of the siblings who believes they have a rightful claim, your approach would be different:

• Establish Contribution: Your primary challenge is to prove your contribution to the original business. Gather any evidence you can, such as bank statements showing financial contributions, witness testimonies from old employees or suppliers, photographs, or any informal written agreements.
• File for Partition: Your strongest claim is on the ancestral land. You should file a suit for partition to get your legal share of the property.
• File a Suit for Accounts and Share of Profits: You can file a separate civil suit claiming that the business was a joint family venture or an informal partnership and demand a rendition of accounts and a share of the assets and profits. The success of this suit will depend heavily on the evidence you can produce.
• Consult with Lawyer: The very basic and important step to start is talk to Lawyer / advocate. You should not hesitate in paying his consultation fee i.e. might be in range of Rs. 10,000 to 50,000 depends case to case. He is helping you in this situation of come out. He is expert in the domain and can help you explain the procedure which you might have never explored. A good lawyer can get the issues resolved much faster than you think.

How the police behave in such cases

Typically, the police are hesitant to intervene deeply in what they perceive as a civil or family dispute. While they will register a complaint for a cognizable criminal act like wrongful restraint or trespass, their primary focus will be on maintaining law and order. They will likely advise both parties to approach a civil court for the resolution of the underlying property and business ownership disputes. They may also initiate preventive proceedings under the BNSS to ensure there is no breach of peace from either side.

FAQs people normally have

What evidence is required?

For the business owner (like Mr. Verma), crucial evidence includes:

• Trade license, GST registration, Udyam Aadhar, etc.
• Income Tax Returns and balance sheets filed for the business.
• Business bank account statements.
• Invoices and receipts in the name of the business/proprietor.

For those claiming a share (the siblings), evidence could include:

• Property records (revenue records, title deeds) to prove it is ancestral.
• Proof of investment or active participation in the business (bank transfers, witness statements).
• Any communication or informal agreement that suggests a joint venture.

How long will the investigation take?

The police investigation into the criminal complaint of forcefully shutting down the shop might conclude within a few months. However, the civil litigation is a much longer process. A suit for partition of property, especially if contested, can take several years, often more than a decade, to be finally resolved through the Indian judicial system, including appeals.

Advocate Sudhir Rao, Supreme Court of India