What is the Dissolution of Partnership (Dissolution of Joint Venture) Case?

What is the Dissolution of Partnership (Dissolution of Joint Venture) Case?

A joint ownership case is filed to terminate the partnership on movable or immovable property in the status of joint or shared ownership and to transfer it to personal ownership. In other words, the case for the dissolution of the partnership can be concluded in two ways:

• By division in kind (by dividing movable or immovable property)

• By sale (by selling the goods through execution and dividing the price among the shareholders)

How to End a Partnership, Who Are the Parties to the Case?

Each of the shareholders may request the sharing of the property in accordance with Article 698 of the Turkish Civil Code. Sharing is possible in accordance with the agreement made by the shareholders among themselves. If an agreement cannot be reached on the sharing method, upon the request of one of the shareholders, the judge may decide to divide the property in the same way and to provide an equalization by adding money to the part with the lesser value if the values of the divided parts do not match. If the request for division is not deemed appropriate in the circumstances and conditions and especially if it is not possible to divide the shared property without suffering a significant loss in value, a sale by auction is ruled. The decision to make the sale by auction among the shareholders depends on the consent of all the shareholders.

Where to File a Dissolution of Partnership Suit?

The lawsuit must be filed in the court where the real estate is located, in accordance with Article 12 of the Civil Procedure Code. This authority is final and it is not possible to decide otherwise.

Dissolution of Partnership by Partition Method:

In the case to be heard, if one of the parties requests the elimination of the partnership through in-kind division, the judge must first examine whether the conditions for in-kind division are present. In order for the court to decide on the division of the property in-kind in a case to eliminate the partnership, it is necessary to investigate the area, quality, number of shares and stakeholders of the real estate, the nature of the agricultural lands and whether in-kind division is possible according to the zoning legislation. If the real estate has suffered a significant loss of value, it cannot be decided to divide in-kind. If in-kind division is possible, if the values of the divided parts do not match, money is added to the part with the missing value and the balance is made. If it is possible to establish a condominium in the real estate, the judge must investigate whether condominium can be established. If it is possible to establish a condominium, it cannot be decided to eliminate the partnership in the real estate through sale.

Dissolution of Partnership by Sale:

If the real estate cannot be divided in kind, it is decided to dissolve the partnership by sale (by auction). However, if all stakeholders come together and unanimously agree that the sale will be made between the partners, the sale will only be made between the partners. The integral parts of the real estate are also sold together with the real estate they are attached to.