can ancestral property become self acquired property?
Vasanth K R
(Querist) 10 July 2011
This query is : Resolved
A, B & C were brothers belonged to hindu undivided family, they had immovable ancestral properties, and they had joint business firm. In 1954 due to differences they came to a conclusion for a final settlement with regard to the immovable properties. On going through the accounts they found that the share of assets of B & C was equal to the share of liabilities in joint family business firm. So, B & C found that it is not possible for them to continue as co-sharers of immovable properties. So, they executed a release deed (themselves and on behalf of there minor male issues)in favour of A alone (the names of minor male issues of A is not mentioned in the deed} and gave up all rights and interests in entire immovable properties for which each of them received Rs.4ooo/- as consideration from A. My question is- by paying consideration to B and C did the entire ancestral properties became self acquired properties of A? I am asking this question with regard to male issues of A, for them it remains as ancestral property or it becomes self acquired property of there father (that is A)?
Ravikant Soni
(Expert) 10 July 2011
1/3 is ancestral and remainign 2/3 is self acquired if mentioned in release deed that each of them received Rs.4ooo/- as consideration from A and Rs. 4000 given from self acquiered funds.
Guest
(Expert) 11 July 2011
Since A has not paid even a single penny in lieu of 1/3 share of his ancestral property, that part would remain as ancestral property acquired by inheritence. However, since the other two parts have been acquired by him after settling the deal and payment of price to the other two natural hiers to the property, only the said 2/3rd part can be considered as the self acquired property for himself and his legal hiers.
Vasanth K R
(Querist) 11 July 2011
Thank you very much Mr.Ravikant Soni and Mr.PS Dhingra for your reply. But at the time of release deed A had minor male issues who were also coparcenars and had share in the property by birth. After the release deed the family business firm was continued by A and it was looked after by A and his sons after they became major there is lot of evidence for the same So, with regard to the male issues of A did the whole property continued as ancestral, please reply.
