BHAGWANT P. SULAKHE versus DIGAMBAR GOPAL SULAKHE AND ORS.

BHAGWANT P. SULAKHE versus DIGAMBAR GOPAL SULAKHE AND ORS.

Remuneration received by Bhagwant as managing agent under the managing agency agreement was joint family property; however, remuneration received by Bhagwant as managing director after the managing agency agreement ceased and after disruption of the joint family was his personal property. Shares acquired out of joint family funds were to be divided equally; movable assets in dispute were addressed specifically per the decree.

Parties
Plaintiff/appellant: Bhagwant P. Sulakhe; Defendant/respondent: Digambar Gopal Sulakhe; Defendant/respondent: Dattatraya Vishwanath Sulakhe; Defendant/respondent: Heirs of Gopal Sulakhe
Jurisdiction
India
Judgment Date
30 September 1985
Procedural Posture
Civil Appeal / Final Decree on Appeals From High Court Judgment
Outcome
Appeals partly allowed; final decree passed.
Legal Topics
Joint Family Property, Partition, Managing Agency Agreements, Remuneration in Partnership Firms, Shares in Companies
Hindu Law Property Law Company Law Joint Family Property Partition Managing Agency Agreements Remuneration in Partnership Firms Shares in Companies

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Parties

Bhagwant P. Sulakhe

Plaintiff/appellant

Digambar Gopal Sulakhe

Defendant/respondent

Dattatraya Vishwanath Sulakhe

Defendant/respondent

Heirs of Gopal Sulakhe

Defendant/respondent

Procedural Posture

Civil Appeal / Final Decree on Appeals From High Court Judgment

Legal Issues

  1. 1 Whether unilateral acts by a joint family member can convert joint family property into personal property
  2. 2 Whether remuneration/commission received as managing agent/director is joint family property or personal property
  3. 3 Division of shares purchased out of joint family funds

Ratio Decidendi

Remuneration received by Bhagwant as managing agent under the managing agency agreement was joint family property; however, remuneration received by Bhagwant as managing director after the managing agency agreement ceased and after disruption of the joint family was his personal property. Shares acquired out of joint family funds were to be divided equally; movable assets in dispute were addressed specifically per the decree.

Court Disposition

Appeals partly allowed; final decree passed.

Orders

  • Plaintiff Bhagwant to pay Rs. 2 lacs to defendants, divided equally between heirs of Gopal and Dattatraya (Rs. 1 lac each), within 2 months.
  • In default, decree amount carries 9% per annum interest from 1st December 1985 till recovery.