Rule 49 of CPC : Rule 49: Attachment of partnership property.

Explanation using Example

Example 1:

Scenario: Ramesh, Suresh, and Mahesh are partners in a textile business. Ramesh has a personal debt and a court decree has been passed against him to pay ₹10 lakhs to his creditor, Mr. Sharma.

Application of Rule 49:

1. Attachment of Partnership Property: Mr. Sharma cannot directly attach or sell the textile business's property to recover his money because the decree is against Ramesh personally, not against the partnership or all partners.
2. Charging Ramesh's Interest: Mr. Sharma applies to the court to charge Ramesh's interest in the partnership. The court orders that Ramesh's share of the profits and his interest in the partnership property be used to pay the debt.
3. Appointment of Receiver: The court appoints a receiver to manage Ramesh's share of the profits and any other money due to him from the partnership.
4. Redemption by Other Partners: Suresh and Mahesh, the other partners, have the option to pay off Ramesh's debt to Mr. Sharma to redeem Ramesh's interest in the partnership. If they choose not to, the court may order the sale of Ramesh's interest in the partnership to satisfy the debt.

Example 2:

Scenario: Anjali, Priya, and Kavita run a catering business as partners. Anjali has a personal loan and defaults on it. The bank obtains a court decree against Anjali for ₹5 lakhs.

Application of Rule 49:

1. Attachment of Partnership Property: The bank cannot attach or sell the catering business's assets directly because the decree is against Anjali personally.
2. Charging Anjali's Interest: The bank applies to the court to charge Anjali's interest in the partnership. The court orders that Anjali's share of the profits and her interest in the partnership property be used to pay the debt.
3. Appointment of Receiver: The court appoints a receiver to manage Anjali's share of the profits and any other money due to her from the partnership.
4. Redemption by Other Partners: Priya and Kavita, the other partners, have the option to pay off Anjali's debt to the bank to redeem Anjali's interest in the partnership. If they choose not to, the court may order the sale of Anjali's interest in the partnership to satisfy the debt.
5. Service of Application: The bank's application to charge Anjali's interest is served on Anjali and her partners, Priya and Kavita, who are within India. Similarly, if Priya and Kavita decide to redeem Anjali's interest, their application is served on the bank, Anjali, and any other partners who do not join in the application.