Vinay Khanna
Asked January 23, 2017

Relinquishment deed : legal issues

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Ques.1 Can a relinqueshment deed be made in favour of a particular co-sharer. Ques.2 Will a release deed executed in favour of some of the co-parcenors would enure to the benefit of all other co-parcenors and not only in favour of those co-parcenors in whose favour release deed was made.(our property is not huf in government land records,only for income tax purpose it was being shown as huf) Question 3. If there are five cosharer A B C D E of property, can A B C relinquesh in favour of D only. (Irrespective of Will in favour of D.)Kindly inform citations.  I am enclosing High court judgement which says relinqueshment  cannot be made in favour of specific person. Narinder Kaur & Anr. vs Amar Jeet Singh Sethi & Anr. on 28 February, 2000.  A release deed executed in favour of some of the co-parcenors would enure to the benefit of all other co-parcenors and not only in favour of those co-parcenors in whose favour release deed was made. M.krishna rao v M.l. Narasitka rao, AIR 2003 AP 498 at p.405(AP). Subbanna v Bala subba reddi,AIR 1945 mad 142(FB) I do need citations.kindly Clarify.

Answer 1

The High Court has ruled the following in the cases that you have so cited-

Chella Subbanna v. Chella Balasubbareddi, AIR 1945 Mad 142- there cannot be such a gift deed to a stranger and it is now clear that there cannot be a gift to a fellow coparcener if the family is to remain undivided.

 

Narinder Kaur & Anr. vs Amar Jeet Singh Sethi, 2000 (54) DRJ 53- a Relinquishment deed cannot be in favour of any particular cosharer ; if it is to operate in favour of a particular party it amounts to a transfer and must be effected either by Sale Deed or by a Gift Deed, depending entirely on whether there was any consideration for such a transfer.

M. Krishna Rao And Anr. vs M.L. Narasikha Rao, AIR 2003 AP 498-If a right is to be created for the first time in a property, it can only be done by way of a sale or gift or exchange, but not by way of 'release'.

 

The case of Chellana Subbanna is a pre-independence one. However, the cases of Narinder Kaur & Anr. vs Amar Jeet Singh Sethi and M. Krishna Rao And Anr. vs M.L. Narasikha Rao are recent ones which allow such a deed to transfer property to a particular family member by the way of a sale or gift deed but not a relinquishment deed. They are therefore the binding law now. Thus, you can transfer your share to another co-parcener by the way of gift deed or sale deed but not a relinquishment deed.

 

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