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AIR 2019 SC 3098Supreme Court of India

Arshnoor Singh v. Harpal Kaur

Karta Cannot Sell Coparcenary Property Without Legal Necessity

1 July 2019Justice Uday Umesh Lalit, Justice Indu Malhotra
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TL;DR

The Supreme Court held that a coparcener acquires rights in ancestral property by birth under pre-1956 Mitakshara law. The Karta's power to sell is limited to cases of legal necessity or benefit of the estate, and the burden of proving legal necessity is on the purchaser.

The Bottom Line

A father cannot sell ancestral property without legal necessity. If succession opened before 1956, sons acquire coparcenary rights by birth and their shares cannot be alienated without their consent.

Case Timeline

The journey from FIR to Supreme Court verdict

event
1 Jan 1951

Death of Lal Singh

Succession opened; property passed to Inder Singh

event
22 Aug 1985

Birth of Arshnoor Singh

Appellant born, acquiring coparcenary rights

event
1 Sept 1999

Sale Deeds Executed

Dharam Singh executed sale deeds to Harpal Kaur

event
29 Sept 1999

Marriage to Harpal Kaur

Dharam Singh married Harpal Kaur (the purchaser)

event
1 Jan 2007

Further Transfer

Harpal Kaur transferred property to Respondents 2 & 3 during litigation

judgment
Invalid Date

Trial Court Decree

Trial court ruled in favor of Arshnoor Singh

judgment
Invalid Date

High Court Reversal

High Court reversed the trial court decision

judgment
1 Jul 2019

Supreme Court Judgment

Sale deeds declared invalid; trial court decree restored

The Story

Lal Singh was the owner of large tracts of agricultural land in Village Khangarh, District Ferozepur, Punjab. The appellant Arshnoor Singh was his great-grandson. Lal Singh passed away in 1951, and his property was inherited by his only son Inder Singh.

Arshnoor Singh was born on 22.08.1985 to Dharam Singh (grandson of Lal Singh). On 01.09.1999, when Arshnoor Singh was a minor, Dharam Singh executed two sale deeds purportedly selling the entire suit property to Respondent No. 1 (Harpal Kaur) for an ostensible consideration of Rs. 4,87,500.

Significantly, when Dharam Singh and Harpal Kaur appeared before the Collector, Dharam Singh admitted that no consideration was actually exchanged, and the amount was mentioned only for registration purposes. Harpal Kaur also admitted that no money was paid.

Subsequently, on 29.09.1999, Dharam Singh married Harpal Kaur (Respondent No. 1), revealing that the sale was a colorable transaction to benefit his second wife at the expense of his minor son from his first marriage.

Arshnoor Singh challenged the sale deeds, claiming his coparcenary rights in the ancestral property.

Legal Issues

Click each question to reveal the Supreme Court's answer

1Question

Whether the succession that opened in 1951 is governed by pre-1956 Mitakshara law or the Hindu Succession Act, 1956?

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1SC Answer

Old Mitakshara law applies since succession opened before commencement of Hindu Succession Act, 1956.

Determines whether coparcenary rights arise by birth.

2Question

Whether Arshnoor Singh acquired coparcenary rights by birth in the ancestral property?

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2SC Answer

Yes. On his birth, Arshnoor became a coparcener with rights in the ancestral property.

Determines if the minor's share could be alienated.

3Question

Whether the Karta (Dharam Singh) had the power to sell the coparcenary property?

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3SC Answer

The Karta's power to sell is tightly limited to legal necessity or benefit of the estate.

Examines the limits on Karta's alienation powers.

4Question

Whether the sales were valid in the absence of consideration and legal necessity?

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4SC Answer

No. The sales lacked consideration and legal necessity, making them invalid as to coparceners' shares.

Determines validity of the impugned sale deeds.

Arguments

The battle of arguments before the Supreme Court

Petitioner

Vihaan Kumar

1

Coparcenary rights by birth

Arshnoor Singh argued that since succession opened in 1951 (before HSA 1956), old Mitakshara law applies and he acquired coparcenary rights by birth.

Mitakshara Law
2

No legal necessity for sale

The sales were without consideration and without any legal necessity or benefit to the estate.

3

Fraudulent transaction

The sale was a colorable device by Dharam Singh to benefit his second wife at the expense of his minor son.

Respondent

State of Haryana

1

Hindu Succession Act applies

Respondents contended that the Hindu Succession Act, 1956 should apply, under which property becomes self-acquired on inheritance.

Hindu Succession Act, 1956
2

Karta has power to alienate

As Karta, Dharam Singh had the authority to deal with family property.

Court's Analysis

How the Court reasoned its decision

The Supreme Court held that the determinative factor is the date of opening of succession. Since Lal Singh died in 1951 (before the Hindu Succession Act, 1956), old Mitakshara law applies. Under this law, property devolved by survivorship to Inder Singh, and remained coparcenary property. Arshnoor Singh acquired coparcenary rights by birth in 1985.

The succession opened on the demise of the common ancestor, Lal Singh, which took place before the commencement of the Hindu Succession Act, 1956. Hence, old Mitakshara law was applicable.

Para Para 18

Establishes that pre-1956 law applies based on date of succession.

The property which devolved on Lal Singh's demise was coparcenary property wherein the male descendants three degrees below him acquired an interest by birth.

Para Para 22

Confirms coparcenary rights by birth.

On his birth, Arshnoor became a coparcener. The Karta's power to sell is tightly limited to legal necessity or benefit of the estate.

Para Para 25

Defines limits on Karta's alienation powers.

The power of Karta to sell coparcenary property is subject to restrictions - the sale should be for legal necessity or for benefit of estate, and the onus for establishing existence of legal necessity is on the alienee.

Para Para 28

Places burden of proving legal necessity on the purchaser.

Allowed

The Verdict

Relief Granted

Sale deeds dated 01.09.1999 declared null and void; appellant's coparcenary rights in ancestral property protected.

Directions Issued

  • Old Mitakshara law applies to succession opening before 1956
  • Arshnoor Singh acquired coparcenary rights by birth
  • Sale deeds lacked consideration and legal necessity
  • Trial court decree in favor of Arshnoor Singh restored

Key Legal Principles Established

1

Date of opening of succession determines applicable law

2

Pre-1956 succession is governed by Mitakshara law

3

Coparcenary rights arise by birth under Mitakshara law

4

Karta's power to alienate is limited to legal necessity or estate benefit

5

Burden of proving legal necessity is on the alienee/purchaser

6

Sales without consideration and legal necessity are void

Key Takeaways

What different people should know from this case

  • If your ancestor died before 1956, old Hindu law applies to inheritance
  • You acquire rights in ancestral property by birth, not by inheritance
  • Your father cannot sell ancestral property without your consent unless there is genuine family need
  • If you suspect fraudulent sale of ancestral property, you can challenge it in court

Watch & Learn

Video explanations in multiple languages

Frequently Asked Questions

A Karta (father) can only sell ancestral property for legal necessity or benefit of the estate. Without these grounds, the sale is invalid as to the shares of other coparceners, including sons.
If succession opened before 1956 (when Hindu Succession Act came into force), you acquire rights by birth under Mitakshara law. For post-1956 succession, different rules may apply.
Legal necessity includes payment of family debts, maintenance of family members, marriage expenses, and similar unavoidable family obligations. The necessity must be genuine and proved.
The burden of proving legal necessity is on the purchaser (alienee), not on the family members challenging the sale.

DISCLAIMER: This case summary is for educational and informational purposes only. It does not constitute legal advice. For advice on your specific situation, please consult a qualified advocate. JurisOptima is not responsible for any actions taken based on this information.

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