Gifting disputed property
Suhas
(Querist) 21 November 2009
This query is : Resolved
I wanted to know if a property is under dispute for nonpayment of taxes, can this property be gifted by the owner to his siblings?
A V Vishal
(Expert) 21 November 2009
Is the property provisionally attached?
G V S Jagannadha Rao
(Expert) 21 November 2009
The owner can give this as onerous gift - a gift attached with an obligation, to clear the taxes. The donee/s would be at liberty either to accept it or refuse it. Once it is accepted, he/they will become owner/s and steps into your shoes. He/they will have to continue the litigation.
A V Vishal
(Expert) 21 November 2009
Sir,
This query is directed to Sri GVS Jagannadha Rao, even if the donor makes a onerous gift but the same needs to be registered in case of an immovable property, however if the revenue provisionally attachs the property and since the same is intimated to the SRO under whose jurisdioction the property is situate, In such a situation the SRO may refuse to register the gift document and the deed will not be held valid in law. Kindly clarify.
Sachin Bhatia
(Expert) 21 November 2009
No the property can not be gifted by the owner because he has to get NOC from the revenue department. Without paying the tax he will not get NOC which is mandatory for any type of transfer deed.
Raj Kumar Makkad
(Expert) 21 November 2009
There is no such term in the Transfer of Property Act which may impose an obligation over the donor to get the property to be gifted cleared from revenue department or make it nonencumbrated. If the property is disputed and the doness has accepted it as such then there is no hurdle to execute the gift deed and SRO has got no power to refuse its registration, however, the entire situation of the property should clearly be mentioned in the deed itself to avoid future complications.
G V S Jagannadha Rao
(Expert) 21 November 2009
1. Mr. Vishal, the Revenue laws and registration laws and procedures vary from State to State. SRO has no power to refuse to register any document except where the property is notified as government property and entered as such in SR Office. Again these procedures may very from State to State.
2. As regards the present query, please note that I had clearly mentioned that the Donee would step into the shoes of donor for the purpose of litigation. We are merely considering the possibility of gift of the property under the given circumstances and there is absolutely no bar in the donor gifting the property.
3. I am sure minor issues could be sorted out to transfer the property effectively and smoothly, pursuant to the intention of the parties to give and take the gift.
4. The requirement of NOC mentioned by Mr. Bhatia may not be there in all States.
5. In India we have different set of Rules and procedures for different States for all laws falling in the State list. The State has power to make its own amendments and also Rules for all laws falling in Concurrent list. Therefore, unless the querist does not mention the State to which he belongs, a clear answer cannot be given. We only endeavour to broadly indicate the remedies/solutions available.
Vineet
(Expert) 22 November 2009
I agree with Shri Rao and Shri Makkad.
