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Nishant Dogra (hier)     23 August 2011

Business dispute - huf

 

Hi!

My  father had built a business (a Hotel & a Restaurant). for this he had taken a loan from the bank on his name. Later, he transfered 50%  share in the Hotel & Restaurant through Memorandum of Oral Partition  on 09/06/2005 on his brother's name who was actually holding only 25% share.

It was verbally agreed that Hotel & a Restaurant would be in 50-50 share pattern as an asset ,whereas the businesses would be run seperately. My father has been solely/individually filling IT Returns since last more than 20 years for the Restaurant & as a 50% partner in the Hotel. All the registrations & clearances/NOC, like from the Municipal CommitteeFood, Health Deptt., Labour Deptt.,  Shop registration etc are on my Father's name. My father also gave one of his personal plots to the brother as a goodwill gesture.  Whereas, his brother only files IT Returns for the hotel that too as 50% partner only. 

Now, his brother(our uncle) is threatning us and also not letting us work. He forcibally closed both the units & said he'll not let us work & is further asking for a new arrangement as 50-50 partnership in the business also.Both the establishments are closed since last 3 months. My father thought that probably sooner or later his brother would come back in right state of mind & everything would be sorted out. But till date nothing has worked out. In the mean while, he started his own business also whereas we are out of work & with no source of income.

Apart from that, my father had laso taken a loan of 20 lacs for renovation of the Hotel on his name. None of the liabilities are on his brothers name & also we were bearing all his  expenses like personal expenses, household epenses, car loan etc (amounting to almost 30,000 - 40,000 p.m.).

Also, none of us have gone to court.

Now,

Can he legally stop us from continuing the business ?

If  we file a Caveat in the court & start the work at the premise can he still get a stay or restraining  or stay order from the court  as weare the ones who  have to pay back the loan & not him? 

What  is the legal standing that we have in regard to the business?

What is hisl claim/position?

Please advise.


Regards.




Learning

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