Selling minors property

Cyrus Thokala (Querist) 18 July 2024 This query is : Resolved
Hello Sir, I am Cyrus from Hyderabad, My query is that My Younger Sister, Brother -In-Law and their Son & Daughter are NRI's, Their Childerns are Having American Passports as they born in US. In Year 2017 My Sister and Nephew came to India, at that time they purchased a pieace of Residential Land in Hyderabad, as My Brother-In-Law was in US, so, we executed a Registration as mentioning my Brother-In-Laws father as Gaurdian. Now, his father was expired 2 years ago. Now they came to India for 2 months and they want sell the Land. What is the procedure, i am came to know that we need to obtain some NOC kind of Order from Court, We enquired but it is a lenghty process, may take a time of 6 months arround. Is there any way out to go further as they are in India for 2 months only.

Thanking you,
Cyrus Thokala

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This discussion addresses the sale of residential land in Hyderabad purchased by NRI children. The property was registered with the grandfather as guardian, who has since passed away. The primary concern is selling the land within the limited timeframe the NRI family is in India, as the court process for obtaining permission to sell a minor's property can be lengthy. While selling a minor's property generally requires court permission, one perspective suggests that if the buyer is willing, the natural guardian might be able to proceed, though the minor could later challenge the sale upon reaching adulthood.

T. Kalaiselvan, Advocate (Expert) 18 July 2024
The property on minor children canot be sold without obtaining permission from court.
The law cannot be bent to one's necessity.
Can the US citizens speak about deviating/violating the procedures as per US laws for any matter in USA?
Similarly we have to abide by the Indian laws also when we are in India.
The procedure for selling the property of a minor is that another guardian should be appointed to the minor child and the said guardian has to obtain permission from court of law to sell the property belonging to minor by giving valid reason, if the court is convinced about the grounds stated then only it can grant permission otherwise the court may even dismiss the petition.
Here another problem is that the court will not grant permission to any person who is appointed as guardian to the minor child.
As the biological father/mother are alive, either of them only can be a guardian to the minor child.
No doubt it may be a lengthy procedure, but that will safeguard the child's future interest, you have to keep that in mind.

kavksatyanarayana (Expert) 18 July 2024
Yes. Here the main point is when a minor's biological parents are alive, no other person can be appointed as Guardian. And the property of a minor cannot be sold unless the court permits the same. Within 2 to 6 months, you cannot get permission as it is a long process.

P. Venu (Expert) 22 July 2024
To my knowledge and understanding, the buyer willing, there is no problem for the natural guardian to sell the minor's property. However, the minor has the option to repudiate the transaction, within the period of limitation, once he/she attains majority. This is the legal position as provided under 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.

It could be that the different principles may be in vogue under other personal laws.

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