Property

Permission for Sale of Minor Property

LegalKart Editor
LegalKart Editor 03 min read 59386 Views
Last Updated: Dec 23, 2023
Permission for Sale of Minor Property

The Indian Majority Act of 1875 establishes the legal age of majority in India. According to the Act, the age of majority in India is "18 years," and everyone under the age of 18 is considered a minor. Minors are unable to engage into contracts unless their guardians do so on their behalf. Let us investigate how to obtain permission to sell a minor's property.

 

Can a Guardian Sell Property?

The powers of a natural guardian or legal guardian are defined in Section 8 of the Hindu Minority and Guardianship Act, 1956. Clause (1) indicates that the natural guardian has complete authority to perform whatever act necessary, reasonable, or proper in the eyes of the law for the sole goal of benefiting the minor or minor's estate. 

Therefore, it is clear from the above provision that a natural guardian can sell the minor’s property (the Act) for the sole purpose of benefiting the minor.

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Can a Guardian Sell Minor’s Property?

As per the supreme court judgment on sale of minor property in Saroj v. Sunder Singh & Ors., the Supreme Court ruled that a guardian cannot sell a minor's part of property without the authorization of the competent Court. Furthermore, Section 8(2) of the Hindu Minority and Guardianship Act, 1956 specifies that minors' immovable property cannot be mortgaged, charged, or transferred by sale, gift, exchange, or any other means without the Court's prior consent.

Furthermore, Section 8(3) specifies that if any natural guardian sells any immovable property in violation of paragraph (2) of Section 8, the transaction is voidable at the minor's discretion. However, the aforementioned minor can only contest such a sale during the limitation period, which begins when they reach the age of majority.

Further, suppose a minor, after attaining majority, wishes to set aside the sale deed as such property belonged to the minor. In that case, such a suit must be filed within the limitation period prescribed under Article 60 of the Limitation Act, i.e, 3 years after attaining majority.

Minor's property sale permission and can a Minor Purchase Property?

For a minor to purchase property in India, he or she must enter into a valid contract of purchase and sale of such property. This agreement is known as an ‘Agreement of Sale’. Every agreement shall be a valid contract in India if it fulfils the criteria under Section 10 of the Indian Contract Act, 1872. Further, Section 11 highlights competent to be a valid party in any valid contract in India.

Section 11 states that every person of the age of majority will be competent to enter into a contract if they are not barred by other conditions mentioned in the section. Therefore, a minor, i.e, anyone who is not of the age of majority (18 years), will not be competent to enter into a contract. Any agreement entered into by a minor will be void ab initio (void from the beginning) the eyes of the law. 

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The requirements of the Transfer of Property Act, 1882, particularly sections 6 and 7, do not exclude a minor from contracting. However, a combined interpretation of the preceding two Acts reveals that a minor can be a lawful transferee and receive property. In the absence of a natural guardian (mother or father), a minor can obtain property via the hands of either his or her natural guardian or a guardian designated by the appropriate Court. The purchase of property would be valid in such a case of acquisition.

After valid purchase, the natural guardian can register the property in the name of the minor under Section 35 of the Registration Act, 1908. However, the execution of such registration shall take place before the appropriate Court’s permission after satisfaction that the property acquired was legal and valid.

A minor can also obtain property through a gift. There is no need for the intervention of the law, the Court, or the minor's guardians in this case. The reason for this is because in the case of a gift, acceptance by the donee is all that is required for it to be effective.

Lastly, a minor can acquire property using inheritance, be it intestate or by way of a will. In case of ancestral property of a Joint Hindu Family, the minor (both son and daughter, since 2005) will receive an equal share in the capacity of a coparcener after the death of the last holder of the property.

As a result, even if a minor is unable to enter into a contract, he can sell property through his guardians. A minor can also get property through the methods outlined above. 

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