SC: Minors need not file suit to void guardian’s unauthorised property sale

New Delhi: In a significant verdict on property transactions involving minors, the Supreme Court has ruled that those aged below 18 years, upon attaining majority, are not mandatorily required to institute a lawsuit to repudiate property transfers executed by their natural guardians without approval from a court.

In a judgement delivered on October 7, the apex court said minors, on becoming majors, can repudiate the transfer of properties by manifesting through clear and unambiguous conduct, such as independently selling or transferring the same.

The verdict came in the case of K S Shivappa Vs Smt K Neelamma from a bench of Justices Pankaj Mithal and Prasanna B Varale.

"It can safely be concluded that a voidable transaction executed by the guardian of the minor can be repudiated and ignored by the minor within time on attaining majority either by instituting a suit for setting aside the voidable transaction or by repudiating the same by his unequivocal conduct," Justice Mithal, authoring the judgment, said.

The verdict said the moot question was whether it was necessary for minors to have filed a suit upon attaining majority within the prescribed time period to set aside an earlier sale deed executed by their natural guardian.

It said the question was whether such a sale deed could be repudiated through their conduct within three years of attaining majority.

In order to answer the questions, the bench referred to sections 7 and 8 of the Hindu Minority and Guardianship Act, 1956 and said: "A simple reading of the provisions makes it abundantly clear that a natural guardian of a minor has no authority in law to mortgage, sell, gift or otherwise

transfer any part of the immovable property of the minor or even to lease out 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 without the prior permission of the court."