partition
seema arora
(Querist) 16 April 2011
This query is : Resolved
Dear Experts
Is this possible a suit can be sold on percentage basis ie some third party will fight for my share and pay me upfront and take % of my share
abhishek
(Expert) 16 April 2011
interest of a person in subject matter of a suit can be given to some other person, and then the other person can step into shoe of the seller
J K Agrawal
(Expert) 17 April 2011
No sir, It comes in definition of 'champerty and maintenance' of suits which is not permitted in India. Such practice is permitted in America and in some European Countries and in England but Indian laws prohibits it.
But one thing is there that one can sale his 'actionable claim' to other person and it is valid under TP Act. In SARFACI ACT similar position is there.
There is very slight difference in both the situations. In First situation the profit or loss of seller depends upon the result of case but in second position the seller gets his consideration at the time of selling rights and he is not concern with fate of case.
Srajadvo460
(Expert) 18 April 2011
It is not possible to sell the share of a suit property Lis Pendence please read section 52 of Transfer of Property Act. Even if the third party purchases the property Lis Pendence then whether he can be impleaded as a party to the pending suit or not is a question raised in High Court, Madras which has been referred to the larger bench which is still to be decided.
