Indemnity bond for minor ??
Ranveer
(Querist) 02 February 2010
This query is : Resolved
I, alongwith my friend are planning to buy a commercial property alongwith business rights and goodwill,licenses etc.
The property belonged to Mr X.. who owned the business too .... he died without will .. heirship certificate obtained from civil court by wife and minor son.
Now as vendors ( wife and minor son ) are holding rights in the property. she has not obtained permission from court regarding sale of above property ( minors interest )
Vendors are not in position to seek legal help to obtain minors court orders.......
they are asking to us to pay some money before agreement for sale , by utilising these funds they would get the court orders for minor.
My query is should we ask for indemnity bond from them and also if we pay a part amount can we enter into MOU with them before they obtain court orders. Can they sign the documents..
Raj Kumar Makkad
(Expert) 02 February 2010
Minors shall never sign nor their sign can be obtained as this has no value before the eyes of law. You can get entered an agreement for sale with the mother of those minors wherein she may clearly mention that the permission is being obtained from court and even if permission is not granted by court, she shall be bound to sell her share. You can pay advance money say under this agreement required amount so that she may be bound to sell the property only to you otherwise after the permission, she may change her mind keeping in view the change in rates of the property.
No bond or MOU is required if you follow the process told by me.
Bhumik Dave
(Expert) 03 February 2010
well advised sir.
Parveen Kr. Aggarwal
(Expert) 03 February 2010
An agreement by a minor is void and not enforceable (Section 11 of the Contract Act, 1872) as a minor is wholly incompetent to enter into a contract (Mohri Bibi vs Dharmadas Ghose — 1903). So, a minor cannot enter into an agreement to sell his share in the property.
Section 8 of the Hindu Minority and Guardianship Act, 1956 provides for powers of natural guardian and as per sub-section (2)The natural guardian shall not, without the previous permission of the court,—
(a) mortgage or charge, or transfer by sale, gift, exchange or otherwise any part of the immovable property of the minor or
(b) lease any part of such property for a term exceeding five years or for a term extending more than one year beyond the date on which the minor will attain majority.
Sub-section (3) says: Any disposal of immovable property by a natural guardian, in contravention of sub-section (1) or sub-section (2), is voidable at the instance of the minor or any person claiming under him.
Sub-section(4) provides: No court shall grant permission to the natural guardian to do any of the acts mentioned in sub-section (2) except in case of necessity or for an evident advantage to the minor.
In view of the above, you may enter into an agreement to sell with the mother qua her share with a stipulation that she will obtain the permission of the Court for sale of minor's share assuring that the alienation is for the benefit of the minor. You may also advance money qua the share of the minor making provision for liquidated damages in case she fails to perform her obligations.
Ranveer
(Querist) 03 February 2010
thank u very much..Mr.Makkad & Mr Parveen.
If we enter into agreement for sale and make only part payment ( mother's share ) ..can we get it registered and will stamp duty be paid on entire value ?
Can we include in agreement that the amount for minors share will be paid only when court give orders and also can we mention that the amount paid for minor's share will be kept in fixed deposit by mother till he attains majority ??
If court doesn;t grant permission for minors share then what will be the case?
If document is registered ..payment made for her share.. she is bound to sell her share to us ?
we will be having only 50% share in property ..can we cancel deal after registration and ask for refund as we are interested in acquiring 100% share.
on what grounds does the court reject the permission for selling minors property ?
Ranveer
(Querist) 03 February 2010
thank u very much..Mr.Makkad & Mr Parveen.
If we enter into agreement for sale and make only part payment ( mother's share ) ..can we get it registered and will stamp duty be paid on entire value ?
Can we include in agreement that the amount for minors share will be paid only when court give orders and also can we mention that the amount paid for minor's share will be kept in fixed deposit by mother till he attains majority ??
If court doesn;t grant permission for minors share then what will be the case?
If document is registered ..payment made for her share.. she is bound to sell her share to us ?
we will be having only 50% share in property ..can we cancel deal after registration and ask for refund as we are interested in acquiring 100% share.
on what grounds does the court reject the permission for selling minors property
