Minors can repudiate unauthorised property sales by conduct, not just by filing lawsuits: Supreme 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.

New Delhi: The Supreme Court has held that those aged below 18 years, upon attaining majority, are not mandatorily required to institute a suit to repudiate property transfers executed by their natural guardians without approval from a court.

In a significant verdict on property transactions involving minors on October 7, a bench of Justices Pankaj Mithal and Prasanna B Varale 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 in respect of two plots in Davangere district.

The court examined the question 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.

Relying upon Sections 7 and 8 of the Hindu Minority and Guardianship Act, 1956, the bench said, "It was 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."

The bench held that a prior permission of the court was a sine qua non for a guardian of a minor to transfer the property of the minor in any of the manners provided under sub-section (2) of section 8 of the Act.

As the statute does not specify the mode by which such a voidable transaction must be repudiated, the court said, a minor, on attaining majority, may avoid or repudiate such a transaction, either expressly by filing a suit for the cancellation of the sale deed or impliedly by clear and unequivocal conduct, such as executing a fresh sale of the same property.