Court mandates 50% of sale proceeds to be secured in a fixed deposit for minor's future.
In a significant ruling, the Madhya Pradesh High Court has permitted the sale of a minor's share in property, placing conditions to ensure the minor's financial security. The decision came as the court addressed the appeal in the case of Jyotiraj Baladas and others versus the State of Madhya Pradesh and others.
The case involved Jyotiraj Baladas, the mother and natural guardian of a minor daughter, who sought permission to sell her daughter's inherited share of property, originally purchased by the deceased father. The property in question is located 600 kilometers from their current residence, raising concerns about its maintenance and potential encroachment.
Initially, the trial court rejected the application, citing the minor's interest as paramount and questioning the necessity of the sale. However, upon appeal, the High Court acknowledged the practical difficulties faced by the guardian due to the property's distance and the lack of local supervision, which could lead to encroachment.
Justice Himanshu Joshi, presiding over the case, emphasized the provisions under the Hindu Minority and Guardianship Act, 1956, particularly Section 8, which allows the sale of a minor's property only in cases of necessity or clear benefit to the minor. The court found that the sale would indeed be beneficial, provided that proper safeguards were in place.
The court ruled in favor of the appellants, setting aside the trial court's decision and granting permission for the sale. Crucially, it imposed a condition that 50% of the sale proceeds must be deposited as a fixed deposit in a nationalized bank until the minor reaches adulthood, ensuring the financial security of the minor's future.
This decision underscores the court's commitment to balancing the immediate practical concerns of guardians with the long-term interests of minors, ensuring that the latter's welfare remains a priority.
Bottom Line:
Hindu Minority and Guardianship Act, 1956 - Permission to sell minor's property by natural guardian - Allowed with restrictions to safeguard minor's interest - 50% of the sale proceeds to be deposited as fixed deposit in a nationalized bank till minor attains majority.
Statutory provision(s):
Hindu Minority and Guardianship Act, 1956 Section 8, Guardians And Wards Act, 1890 Section 47
