What Is the Difference Between Ancestral Property and Inherited Property? Delhi HC Explains

In a significant judgment delivered on December 24, 2024, Justice Purushaindra Kumar Kaurav of the Delhi High Court provided a detailed analysis of the legal distinction between ancestral and inherited property. This ruling came in the case of Birbal Saini v. Satywati (RSA 196/2019), which involved a dispute over property ownership within a family. The court upheld the decisions of lower courts, which had concluded that the property in question was inherited rather than ancestral.

The judgment not only resolved the long-standing family dispute but also clarified important principles under the Hindu Succession Act, 1956, offering a detailed explanation of property rights.

Case Background

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The case revolved around a family property in Mundka, Delhi, that had become a point of contention between siblings. The appellant, Shri Birbal Saini, claimed that the property was ancestral and could not have been sold by their father, Shri Bharat Singh, without the consent of all heirs. The respondent, Smt. Satywati, to whom the property was sold in 2009, argued that the property was inherited by their father as his self-acquired property and that he had the legal authority to sell it to her.

The property had originally belonged to Shri Surjan Singh, the grandfather of the litigants, who acquired it through a family settlement. Upon his death, the property devolved upon his son, Bharat Singh. The respondent asserted that Bharat Singh had executed a General Power of Attorney (GPA), Agreement to Sell, and other legal instruments in her favor, making her the lawful owner. The appellant disputed the validity of this transfer, citing ancestral property laws.

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Legal Issues

The central issue in the case was the classification of the property as ancestral or inherited. This distinction is pivotal in determining the rights of family members under Hindu law.

1. Ancestral Property

   – Defined as property passed down undivided through four generations of male lineage.

   – Legal heirs, called coparceners, have an inherent right to such property by birth.

   – The property cannot be sold or alienated without the consent of all coparceners.

2. Inherited Property

   – Refers to property acquired through a will, settlement, or inheritance after the owner’s death.

   – The inheritor has absolute ownership and discretion over its use or sale.

   – It does not automatically pass to descendants and is governed by the Hindu Succession Act, 1956.

The appellant contended that the property was ancestral and that Bharat Singh, as a coparcener, could not have transferred it without the approval of all heirs. The respondent argued that the property, having been inherited by Bharat Singh through a family settlement, was self-acquired, granting him full authority to dispose of it.

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Observations of the Court

Justice Kaurav referred extensively to Section 8 of the Hindu Succession Act, 1956, and precedents established by the Supreme Court to delineate the distinction between ancestral and inherited property. The court observed:

“There is no evidence on record that the property in question was coparcenary. The absence of shared ownership rights distinguishes it from ancestral property.”

The judgment also relied on Commissioner of Wealth Tax, Kanpur v. Chander Sen (1986) to emphasize that property inherited by a son from his father does not constitute coparcenary property. It becomes self-acquired, free from claims by descendants unless expressly stated otherwise.

Analysis of Evidence

The court examined the documentary and oral evidence presented by both parties and upheld the findings of the lower courts:

1. Ownership by Bharat Singh

   – The property was acquired by Bharat Singh through inheritance following a family settlement with his brother. This inheritance made it self-acquired in his hands.

   – The appellant failed to provide evidence supporting his claim that the property was ancestral.

2. Transfer to the Respondent

   – Bharat Singh had executed legally valid instruments, including a GPA and Agreement to Sell, transferring the property to the respondent.

   – The courts found no procedural or substantive irregularities in this transaction.

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3. Applicability of Hindu Succession Act

   – Section 8 of the Act was crucial in determining the property’s status. It clearly stipulates that property inherited by a son from his father does not retain its ancestral character.

Decision

Justice Purushaindra Kumar Kaurav delivered a decisive ruling, dismissing the appeal and affirming the decisions of the trial court and the appellate court. The High Court concluded that the property in question was inherited, not ancestral, and was, therefore, subject to the absolute ownership of Bharat Singh. The judgment stated:

“The suit property has been inherited by the father of the parties and is not a coparcenary property. As such, the father had full authority to dispose of it as per his wish.”

The court dismissed the appellant’s claim and found no substantial question of law warranting intervention under Section 100 of the Civil Procedure Code (CPC). It remarked:

“A grandson does not have a right in the separate property of his grandfather in the presence of his father unless the father predeceases the grandfather.”

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