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Niraj Kumar (Senior Technical Architect)     01 February 2010

Buying plot from developer, ancestral and minors involved.

Hello all,

I'm planning to buy a plot from developer and they have approval from LIC housing Finance. However, when I got the papers scrutinized from my lawyer she stated that minor's interest is involved and a court's permission should have been obtained to carry out sale.

The picture is: A family of 62 people in which 12 are minors sold 42 acres of land(ancestral property) to Party 2 in April 2006, Party 2 sold the same property to party 3 in Nov 2006, Party 3 sold the property to Builder in April 2008. Now I'm buying the property from the developer. I'm not sure, if the minor's interest is still applicable in my case because builder doesn't have any issues of minor, however when family sold the minor's interest was involved and they should have obtained court's permission as per Hindu Minority and guardianshipt act, which apparently they didn't.

Please advise me on this. I've paid token amount to book the plot by cheque and now builder is dilly-dalying in paying my money back. What are the options that I've.

Thanks in advance!


 12 Replies

Suchitra. S (Advocate)     01 February 2010

Any person cannot sell the ancestral property without permission of the court and the minors can challenge the sale thus made and the sale becomes invalid. But in this case, as the sale is from the third hand, I suppose the minors have lapsed the limitation period to contest the sale. So, there should be no problem to you. If the limitation period has not completed, they can contest hte sale.

1 Like

Niraj Kumar (Senior Technical Architect)     01 February 2010

Thanks for the reply! The minor's involved are ranging from age of 2 years to 16 years and you should know that no. of minors are 12. The minor's can always challenge such sell after attaining majority so the the running risk is for next 19 years from april 2006 ( the smalles minor being of 2 years old). Please advise on this.


Suchitra. S (Advocate)     01 February 2010

I think it is not a good idea to buy that property. You will not get a good title if they contest the sale.

1 Like

Niraj Kumar (Senior Technical Architect)     01 February 2010

Since, now I cannot go ahead with this deal the builder is luring me with following proposal.

They will issue an idemenity bond stating that if there is any issue which arises due to minor's claim they will settle the claim in my behalf.

Is this a viable solution? Or can the family, having sold the property in april 2006, approach the court now, 2010 to obtain the permission to validate the sale that took place in April 2006?

If not, what are my options of getting token money back from the builder. I've paid them through cheque.

Thanks again!

Daksh (Student)     01 February 2010

Mr.Niraj Kumar,

Ms.Suchitra S has amply covered all aspects of your query and I concur with her in totality.  By proposing to issue indemnity bond the builder cannot get away the exercise of rights vested with minors.   Even presuming but not admitting the matter goes to the court the builder will very well say in court that he is willing to make good the loss caused to the then minors by monetary compensation and in turn making you to financially bleed.  Hence for practical reasons you better opt out of the deal.   To get back the token money you simply put the builder to notice that as the property is not free from incumberances/charge you do not want to go ahead and if there is any issue you can go to the consumer court or file civil suit for recovering your token money. 

I hope this clarifies your query.

Thanks and best regards


1 Like

Isaac Gabriel (Advocate)     01 February 2010

Mr.Niraj, Don't worry.Out of the 42 acres of land,you are going to purchase a singe plot, that oo wioth the LIC housing Finance.You have taken this decision for settling in life.So, go ahead. After all, the property has already transferred among four hands, and when compared to the overall risk for the 42 acres,yours is meagre and also the LIC has taken the task of bearing the entire risk by financing the project. we must be prospective in life taking into ccount the overall aspects.


Raj Kumar Makkad (Adv P & H High Court Chandigarh)     01 February 2010

It is difficult to be agree with Isaac. A common pirchaser of such house lands generally invest their entire saving of life and they know the importance of their small plot/flat/house prepared with their dreams so why to tak such risk when the interest of minors can be claimed even after 16 years (mnor age is even 2 years in some of the cases as you told) and if hardly matters how much subsequent buyers have purchased the property belonging to minors. It can be got set aside by those minors on attaining their majority and they may make bargaining with you at their arbitrary terms and condititions to let you remain in he same conditition. So avoid to purchase such property.

1 Like

Niraj Kumar (Senior Technical Architect)     02 February 2010

Hello ISACC,

Please forgive me, I couldn't take your advice. You may have reasons to believe that LIC has taken the burden but I must tell you I'm paying a margin money to builder which is 40% and LIC is financing only 60%. My deal with the builder is not at the same price which LIC has approved for the layout. Builder is quoting a price which is 35% more than the LIC approved amount. Eventually, I end up paying 40% from pocket and rest is financed by LIC. Why would I risk my 40% money for a property which has minor's interest. I should also mention that when I approached SBI for loan approval they asked for court's permission for selling minor's property. Furhter, you should understand if I run into an litigation its not responsibility of LIC to contest that in court. In worst case, LIC would simply loose mortgage of the land but they can still sue me in the court to recover pending EMIs from my personal asset and if I'm High Worht Net Individual band won't have any issues in recovery. Please correct me if I'm wrong here.

I sincerely thank you for your advice, however it didn't sound professional to me. I extend my apologies if you felt offended.

Thanks for responding to my query!   

Isaac Gabriel (Advocate)     02 February 2010

OK dosn'n matter. I appreciate your interest for cent percent litigation free  transaction .

Vidyanand (Dy. Manager)     08 February 2010

Hi all,

My case is also same like Mr.Niraj. I have paid advance for a BDA approved property in Bangalore which is approved by financial institutions.  The original owner of this property is Mr.A and who is no more and has 4 sons. The 4 sons of Mr.A have distributed the property among them selves. Now one of his son Mr.B, developed lay out in the share alloted to him and the layout is approved by BDA. Mr.B  has one son and one daughter and both are minors.

My question is whether i will have clean title (without minors issue), since the father him self is selling the property.

Please reply




Isaac Gabriel (Advocate)     08 February 2010

In the given case, B is at liberty to alienate his share at the advanteous way he likes. The proceeds after all goes to his family which includes his sons and legal heirs.If you have got any reservation,you may check up whether the rights of his legal heirs have been duly discharged  while registering the sale deeds. Caveat Emptor  or ' buyers beware 'applies here also.

Vidyanand (Dy. Manager)     09 February 2010

Dear Isaac,

Thanks for you prompt response. You told me to check up whether the rights of his legal heirs have ben duly discharged.  How to check up this? Can you please guide me.



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