Please let me know in brief the procedures involved in both the cases (as mentioned in the title) and what is the cost involvement in both cases. Which is more cost-effective?
We are attempting to make a partition of 6 apartments on a land owned by 8 brothers and sisters of my father. 2 of my father’s sisters died without leaving any legal heir. Want to know the pros and cons of the above captioned procedures (along with cost involved in both the cases) namely –
1) In-Court partition by creating Solenama
2) Out-of-Court partition through Registrar
For the purpose of this answer, let us assume that you are a member of hindu undivided family. Out of court partition/ settlement is an easier and cost effective method than in court partition suit. Solenama is a compromise deed which is an adjustment of partition suit made to the satisfaction of the court and both the parties that the property has been distributed in a just way. In court partition suit will be expensive. It will also be very tedious and exhausting for all the parties. For the purpose of a partition suit, each one of the sibling will be a party and each of them should employ their own advocates. It will also consume a lot of time. In case of out of court partition, there has to be mutual consent amongst all the parties that they have reached a proper and just settlement. If any party feels aggrieved about the terms and conditions of the settlement, he/ she can institute a partition suit. It is to note that, husbands of your aunts can also be legal heir to your aunts; it is not limited to off springs only. Cost of a partition suit will depend upon the market value of the property that is to be partitioned, stamp duty, court fees, advocate’s fees etc. Out of court settlement will be a onetime expenditure.
Since, you have not provided us with the details of the value of your property and the state in which you reside we can neither tell you the specific procedures of any of the two cases nor we can pinpoint any specific amount which will be spent for them.
However, if all six of you agree on your respective shares then you can opt for in court partition by signing the solenama. It is more cost effective as well as you only need to pay stamp duty equal to 0.5 % of the value of your property. (In Case of West Bengal) If you are opting the second option i.e., out of court partition through registrar you will need to pay 1.2 % of the total value of your property as duty. In your case two co-owners died without any legal heirs had they been alive then they would have to sign a gift deed in favour of you six to relinquish their right and gifting it to you all which would have resulted in extra expenditure for you all.