Ancestral property can be gifted only for pious purpose: Supreme Court

The court pointed out that the manager of the joint family property may alienate the property only in three situations

The Supreme Court on Tuesday declared the manager of a Hindu undivided family (HUF) has the power to make a gift of ancestral property for a ‘pious purpose’, but such an alienation can't be permitted 'out of love and affection'.

"A Hindu father or any other managing member of a HUF has the power to make a gift of the ancestral property only for a pious purpose, that is, for charitable and/or religious purposes. Therefore, a deed of gift in regard to the ancestral property executed out of love and affection does not come within the scope of the term pious purpose, " a bench of Justices S Abdul Nazeer and Krishna Murari said.

The bench further pointed out that the manager of the joint family property may alienate the property only in three situations—legal necessity, for the benefit of the estate, and with the consent of all the coparceners of the family.

In this case, K C Chandrappa Gowda filed a suit against his father K S Chinne Gowda, and one K C Laxmana for partition and separate possession of his one-third share in the suit schedule property. He also sought a declaration that the gift or settlement executed by Gowda in favour of Laxmana as null and void. The property in question belongs to the joint family consisting of the plaintiff, the first defendant, and one K C Subraya Gowda.

Laxmana led by advocate Sanjay M Nuli contended transfer of property by gift was for pious purpose which is permissible in law.

"It is irrelevant if such a gift or settlement was made by a donor, i e, the first defendant, in favour of a donee who was raised by the donor without any relationship. The gift deed in the instant case is not for any charitable or religious purpose," the bench said.

The court also pointed out in the case, the alienation of the joint family property was not with the consent of all the coparceners. So this is voidable at the instance of the coparceners whose consent has not been obtained.

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