Sale of property under huf etc.
Bhagirath Biyani
(Querist) 05 March 2013
This query is : Open
We are 5 brothers. Our father was one among the 4 brothers, two brothers had separated in 1942 and 1953. Ancestral Haveli was being shared between our father and his elder brother. Our father passed away in 1957. In 1963 his half share of Haveli was vacated by us to move to new Haveli premises. This new property in Rajasthan, consists of a plot of 1000 sq mtrs, half of which has Haveli building.
2 of our eldest brothers expired 7 years ago without leaving a will. They are survived by 9 and 3 inheritors (consisting of wife, daughters and sons).
Over 3 years ago two brothers’ families had consented with us 3 brothers verbally to put the property for sale. Legal Document was drafted as agreement for all 15 to sign (us 3 brothers and 9 plus 3 inheritors of two brothers). We brothers waited for signatures or response from both the elder brother’s families. A year later, two separate agreements were drafted for 9 heirs and 3 heirs for respective compliance. Later it was realized that even the separate draft documents for 9 heirs and 3 heirs were not shared among respective mother, brothers with the sisters. All have been kept in loop, reminded for sharing, signatures and on efforts for the property sale.
Following an advice last year that being ancestral property, our fathers’ HUF is its’ owner. All relevant details about HUF were shared between we 3 brothers and male members or two elder brothers that only correct approach is to sale it as property owned by our fathers HUF. Few months ago consent letter to sale the property was also signed by us 3 brothers and only male member of one of the brother’s family in favour of eldest of 3 brothers. Application was made for PAN in name of father’s HUF. Bank has been agreeable to account opening by Karta but insisting that consent letter to this effect should have signature of all co-parceners, including some inheritors of eldest brother’s family.
The queries are:
a. Wife of the eldest brother has condition to sign only when she be given sole powers to distribute their part of the proceeds among 3 sons and 5 daughters but two sons are not consenting. What is the way out?
b. One of the brother’s only daughter, having his Power Of Attorney, three weeks ago sold his 1/5th share of property to our cousins having adjoining property, without consulting any of the rest 14). Both parties are saying that 1/5th of property sale has been registered. This is yet to be confirmed. Is all that legal? Can that be legally nullified, stayed or challenged?
c. Will the property be considered legally under HUF - though no legal status to HUF nor it’s partition - also by the buyers, who are approaching, well aware of our family and the property, including above noted sale of 1/5th? Can Karta go ahead to negotiate with buyers for all or the remaining 4/5th, keeping all informed. Will such deal be acceptable for registration and by Income Tax?
