The Supreme Court of India has ruled that a co-owner of undivided property cannot sell or transfer the entire property without first determining and dividing their share.
This decision came during a case involving a tenant who had bought undivided property from one of the co-owners. The Court upheld a previous High Court ruling, which placed an injunction on the buyer (the appellant) until the property is properly divided among the co-owners.
The Case in Brief
In the case, two brothers originally purchased the property in 1959. After their deaths, a dispute arose between their heirs regarding ownership rights. One co-owner sold the property to the appellant, a tenant, which was contested by another co-owner (the respondent). The respondent argued that his father had never given up his share of the property, and thus, the sale by the other co-owner was invalid.
The Supreme Court agreed, ruling that the sale of an undivided property is not legally binding on the other co-owners. The Court emphasized that one co-owner cannot sell the entire property without first partitioning it, as it would infringe upon the rights of the other co-owners.
Legal Implications
The judgment is significant for property laws and co-ownership in India. The Supreme Court pointed out that the Transfer of Property Act, 1882, only allows for the transfer of a co-owner’s specific share. The rest of the property must remain undivided unless all co-owners agree to the sale or division.
In this case, the Court ruled that the sale deed was valid only to the extent of the selling co-owner’s share in the property. The buyer is free to seek a legal remedy, either through a suit of partition (to divide the property) or by claiming compensation and damages against the co-owner who sold the property.
Key Takeaways:
- Co-Owners Cannot Sell Entire Undivided Property: A co-owner must have their share legally partitioned and demarcated before transferring it.
- Protection of Co-Owners’ Rights: This ruling protects the rights of other co-owners who may not wish to sell their share of a jointly owned property.
- Legal Remedies for Buyers: Buyers who purchase undivided property without a proper partition can seek legal action to either divide the property or claim damages from the seller.
The Supreme Court’s ruling ensures that the rights of all co-owners are respected and upheld during any sale or transfer of joint property. The decision clarifies the legal position under the Transfer of Property Act, 1882, ensuring that no co-owner can take unilateral action without the consent of others.
