Note: This story has not been edited by LegalSeva and is generated from a news syndicate feed.
Minors can, on reaching adulthood, cancel sale transactions made by guardians, says top court
-NEW DELHI: The Supreme Court has ruled that minors, on attaining majority, can repudiate sale transactions executed by their guardians without the court’s permission, and it is not mandatory for them to move court to cancel such sales.
Clarifying an important point of law under the Hindu Minority and Guardianship Act, 1956, a bench of justices Pankaj Mithal and PB Varale held that when minors, after reaching majority, transfer the same property that was earlier sold by their guardians, such an act itself constitutes sufficient repudiation of the earlier transaction.
This ruling is significant as the bench clarified a long-standing legal ambiguity. Previous Supreme Court decisions had not conclusively determined whether filing a separate suit was mandatory to repudiate property sales made by guardians without court sanction. By settling this uncertainty, the judgment provides clearer guidance on how minors can assert their property rights once they attain majority.
Significance of ruling- Long-standing legal ambiguity
Previous SC decisions had not conclusively determined whether a separate suit was mandatory to cancel property sales made by guardians without court sanction under Hindu Minority and Guardianship Act, 1956
The ruling came last week in an appeal filed by one KS Shivappa, who had purchased two adjoining plots in Davanagere, Karnataka, from minors after they attained majority. The dispute centred around a plot of land, which had earlier been sold by the minors’ father and natural guardian, Rudrappa.
Court intervention not needed for cancelling sale
“The disposal of any immovable property by a natural guardian without the court’s permission is voidable at the instance of the minor…the transfer…can be repudiated by the minor on attaining majority by his action and not necessarily by the intervention of the court.”
-Supreme Court
Rudrappa had purchased two plots in 1971 in the names of his three minor sons. Shortly there after, he sold both plots to different buyers without seeking the court’s sanction, as required by law. One of these plots changed hands twice before being sold to KS Shivappa in 1989 by the two surviving sons (the third having passed away) after they reached majority. The other plot was
similarly sold by Rudrappa to another buyer, Neelamma, in 1993.
When Shivappa bought both plots from the sons upon their attaining majority, he constructed a house on the combined land. Neelamma, claiming ownership of one of these plots, later sued him for possession and declaration of title.
The trial court ruled in favour of Shivappa, holding that the father’s sale without judicial permission was voidable, and the minors had effectively repudiated it by selling the property themselves after attaining majority. However, the first appellate court and the Karnataka High Court reversed this finding, saying the minors could not transfer the property without first filing a suit to cancel the earlier sale deed. Setting aside the high court’s decision, the Supreme Court restored the trial court’s ruling.
For case specific advice, get in touch with property Lawyers Punjab and Haryana High Court District Court Chandigarh Panchkula Mohali Derabassi Kharar State Commission
More on 99888-17966
Property cancellation in India is possible through mutual agreement and a registered cancellation deed, or through a court order if there is a dispute. Grounds for cancellation include fraud, coercion, or mutual consent, and the process is governed by the Transfer of Property Act, 1882. If it’s not a mutual cancellation, the aggrieved party must file a suit in civil court, which can issue a decree to cancel the sale deed. [1, 2, 3]
Cancellation by mutual agreement
• Draft a cancellation deed: Both parties must agree to cancel the original sale deed.
• Draft the agreement: Create a cancellation deed that states the original deed is being canceled and the agreed-upon reason.
• Execute and register: The cancellation deed must be executed on stamp paper, and then registered at the same Sub-Registrar’s Office (SRO) where the original deed was registered.
• Pay duties: Stamp duty and registration fees will be applicable for this new deed. [2, 3]
Cancellation through court
• File a lawsuit: If one party refuses to cooperate, the other party must file a civil suit for cancellation of the sale deed.
• Provide grounds: The lawsuit must be based on valid grounds like fraud, misrepresentation, coercion, or undue influence.
• Court decree: The court will review the case and, if the grounds are valid, will issue a decree for cancellation.
• Update registration records: The court’s decree is sent to the registration office, where officials will update the records to show the deed is canceled. [1, 2, 3, 4]
Key legal points
• The Transfer of Property Act, 1882: This law, along with the Indian Contract Act, 1872, governs the cancellation of property deeds.
• Court’s role: A civil court can cancel a sale deed if it was obtained through fraud or coercion.
• Registrar’s role: In some cases, the Registrar may only be able to act upon a court order to cancel a sale deed; however, some states have given registrars this authority through specific circulars. [1, 2, 3]
AI responses may include mistakes.
[1] https://www.casagrand.co.in/blog/what-is-a-cancellation-of-a-sale-deed-and-how-does-it-work/
[2] https://housing.com/news/can-a-sale-deed-be-cancelled/
[3] https://www.ghar.tv/blog/property-deal-cancellations-in-india-legal-rights/artid2157
[4] https://www.nobroker.in/blog/cancellation-of-sale-deed/
Latest Legal News, Stories & Updates by LegalSeva 