SC: Gifting Ancestral Property of HUF Out of Love Doesn’t Come Within Scope of Pious Purpose

Paridhi Arya

Published on April 21, 2022 at 16:28 IST

The Supreme Court Bench of Justice S Abdul Nazeer and Justice Krishna Murari ordered that the Ancestral Property of Hindu Undivided Family can be Gifted only for Pious Purpose.

The Bench observed the term Pious need to be understood for charitable or/and religious purpose and so the property transferred to someone due to love and affection is not included in Pious Purposes.

The Court held “It is irrelevant if such gift or settlement was made by a donor, i.e. the first Defendant, in favour of a done who was raised by the donor without any relationship, i.e. the second Defendant”.

The Case was filed by the son against his father as he gifted the Ancestral property to a person whom he brought up like his son.

Trial Court dismissed the case but the Appellant Court has held the gift deed void.

The Karnataka High Court has also upheld the decision of Appellant Court and so the person who got share approached the Supreme Court.

The Apex Court observed that Karta/ Manager can alienate the property only in three conditions which are –

  1. Legal necessity,
  2. For the benefit of estate,
  3. When all the coparceners have given consent for alienation.

In the instance Case the Consent of all the coparceners is not taken and so it is Voidable on the instance of Plaintiff whose Consent is not taken.

The Court held “It is settled law that where an alienation is not made with the Consent of all the coparceners, it is voidable at the instance of the coparceners whose Consent has not been obtained”.

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