18 March 2021
The Private Client team at Cyril Amarchand Mangaldas shares their comments and opinions shared in an article in the following Q&A which was published by the Mint Newspaper on 17th March, 2021 and the online edition of the same can be found here.
Is it possible to do a gift deed for leasehold DDA flat?
—Name withheld on request
We understand from your query that the property concerned is a leasehold property allotted by the Delhi Development Authority (DDA). Lease deeds executed by DDA usually require its prior written permission to gift or transfer the leasehold property to another person. Should your lease deed have this requirement, you can obtain the same from DDA. Note that stamp duty has be paid on a gift deed and the same is required to be registered with the sub-registrar of properties.
The youngest of my four brothers sold his plot at a nominal price to a third party 10 years ago to meet his livelihood needs. He didn’t take consent from either of us. Can I file a suit against the sale deed? My brother’s whereabouts are unknown to date. What is the maximum time limit to file a suit against under the circumstance?
—Name withheld on request
We note that you have described ‘the property’ as ‘his plot’, indicating your younger brother had sole title and ownership. In such a scenario, assuming that the property was not jointly owned between your brothers and yourself, your youngest brother was entitled to dispose of the same. It is his personal estate and property, and he is entitled to sell the same if he so wishes.
If the property was jointly owned among the brothers, and the requisite consents were not obtained, then, as per the Limitation Act 1963, the statutory period of limitation allowed for possession of immovable property or any interest is 12 years. So you need to move quickly. Also note that as the third party buyer had paid consideration (after conducting his own diligence) for the purchase of title to the property (an essential element of a valid contract), unwinding the sale would not be possible. Your remedy, if any, would be to pursue legal action for damages against your brother only.
Regarding the disappearance of your brother, I hope you are taking all steps, including working with the authorities, to locate him and ensure he is safe.
For further information, please contact:
Rishabh Shroff, Partner, Cyril Amarchand Mangaldas
rishabh.shroff@cyrilshroff.com
