Deceased husband flat sale

Bhavesh (Querist) 08 July 2021 This query is : Resolved
Husband has died in Nov 2020.
In 2018 he bought one house properly/flat and wife was co-owner.
Now for family survival they want to sell a property . widow has 2 minor children (son and daughter).
Banks are denying loan to every buyer.

Family is under tremendous need of money.
How law can be a hindrance, as it's a matter of family survival.
And flat will be ceased by bank now (as it's NPA )

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A widow is facing difficulties selling her deceased husband's flat due to the property being a Non-Performing Asset (NPA) and banks refusing loans to buyers. The main legal concern is that her minor children have a right to their father's property, and banks are hesitant to finance a sale due to potential future claims from the children. The discussion clarifies that the mother, as the natural guardian, can sell the property but requires prior permission from the District Court (or City Civil Court in Mumbai) to do so, as per the Hindu Minority and Guardianship Act, 1956. This permission is granted only if the sale is necessary or demonstrably advantageous for the minors. While court proceedings can take time, consulting a local advocate is recommended for specific timelines, especially given the urgent need for funds.

SHIRISH PAWAR, 7738990900 (Expert) 08 July 2021
Hello,

Bank will not finance property as the property is NPA. Legally you cannot sell the property. However, you may try to sell the property to persons who can repay the bank loan and later on buy the property.

kavksatyanarayana (Expert) 08 July 2021
Yes. Agreed with the advice of the learned expert Mr.Shirish Pawar sir.

Bhavesh (Querist) 08 July 2021
Bank contention is that as children are minors they have the right to father property and they can claim it when they become major. mother can sell it but in future there may be claim from children hence banks are not ready to finance, is it correct?

P. Venu (Expert) 10 July 2021
The power of the natural guardian to alienate the property of the minor is circumscribed by the provisions of the Hindu Minority and Guardianship Act, 1956:

"8. Powers of natural guardian.—

(1) The natural guardian of a Hindu minor has power, subject to the provisions of this section, to do all acts which are necessary or reasonable and proper for the benefit of the minor or for the realisation, protection or benefit of the minor’s estate; but the guardian can in no case bind the minor by a personal covenant.

(2) The natural guardian shall not, without the previous permission of the court,—

(a) mortgage or charge, or transfer by sale, gift, exchange or otherwise, any part of the immovable property of the minor; or

(b) lease any part of such property for a term exceeding five years or for a term extending more than one year beyond the date on which the minor will attain majority.

(3) Any disposal of immovable property by a natural guardian, in contravention of sub-section (1) or sub-section (2), is voidable at the instance of the minor or by any person claiming under him.

(4) No court shall grant permission to the natural guardian to do any of the acts mentioned in sub-section (2) except in the case of necessity or for an evident advantage to the minor.

(5) The Guardians and Wards Act, 1890 (8 of 1890), shall apply to and in respect of an application for obtaining permission of the court under sub-section (2) in all respects as if it were an application for obtaining the permission of the court under section 29 of that Act, and in particular—

(a) proceedings in connection with the application shall be deemed to be proceedings under that Act within the meaning of section 4A thereof;

(b) the court shall observe the procedure and have the powers specified in sub-sections (2), (3) and (4) of section 31 of that Act; and

(c) an appeal shall lie from an order of the court refusing permission to the natural guardian to do any of the acts mentioned in sub-section (2) of this section to the court to which appeals ordinarily lie from the decisions of that court.

(6) In this section “court” means the city civil court or a district court or a court empowered under section 4A of the Guardian and Wards Act, 1890 (8 of 1890), within the local limits of whose jurisdiction the immovable property in respect of which the application is made is situate, and where the immovable property is situate within the jurisdiction of more than one such court, means the court within the local limits of whose jurisdiction any portion of the property is situate."

Hence, you can sell the property after obtaining the due permission of the District Court, if in Mumbai City, with the permission of the City Civil Court.

Bhavesh (Querist) 17 July 2021
Hi Sir

Thanks for the help. How much time will be required to get such permission from court as property is already a NPA. And Bank is chasing for the payment.

P. Venu (Expert) 20 July 2021
Generally, the proceedings may not take that much time. However, only a local advocate can provide you exact information.

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