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Ramesh   14 September 2024

Regarding a shop purchase among family members

  • Subject: Dispute Over Shop Purchased with Family Funds - Need Legal Guidance

    Dear members, I am writing to seek legal advice regarding a family dispute over a shop purchased using joint contributions from myself, my mother, and my younger brother.

    Facts of the Case: My mother and I each contributed ₹5 lakh via cheques, totaling ₹10 lakh, to my younger brother for the purpose of purchasing a shop, with the understanding that the rental income would be shared.

    My younger brother, however, bought the shop jointly with a friend, with both holding 50-50% shares of the shop (so half money my younger brother paid other half by his friend).

    The property registration was completed in my brother's and his friend's names. Since the registration and the occupation of the shop by the first tenant, my younger brother has refused to share any rental income with us, claiming that since the property is in his name, we have no rights over it.

    He asserts that neither I nor my mother are the owners and thus do not deserve any share of the rental income.

    Our Position: We contributed significantly to the purchase of this shop, and the refusal to acknowledge our contribution or provide any rental income is unfair. The payments were made through proper banking channels (cheques), which should provide a clear record of our contribution.

    Assistance Needed: What legal steps can we take to either recover our contribution or secure a share in the rental income? Is there any way we can assert our rights based on the cheque payments we made? How should we approach this matter in terms of filing a claim, and what documentation or evidence would be most helpful? We would appreciate any legal guidance or advice from the members of this forum. Thank you in advance for your help.


Learning

 2 Replies

T. Kalaiselvan, Advocate (Advocate)     14 September 2024

Since you have evidence for having given him money through cheque and also as your mother also financially assisted him by a cheque payment, you may first issue a legal demand notice demanding return of your amount with interst from the date of payment till the date of setlement.

If he fails to respond or do not comply then you can file a suit for recovery of money and also file an application in the same suit seeking attachment before judgment of the shop property insofar as  share in the shop property is concerned for the purposes of security towards the borrowed amount. provided the claim is not barred by limitation

P. Venu (Advocate)     16 September 2024

There is no legal basis for claiming share in rental income. The remedy lies is claiming the amount advanced, with interest.


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