Supreme Court Shields Minors’ Property Rights Against Unauthorized Guardian Sales

The Supreme Court ruled that a sale of a minor’s property by a natural guardian without court permission is voidable. The minor, upon attaining majority, can repudiate this transaction not only by filing a suit but also through unequivocal conduct, such as executing a fresh sale deed, within the prescribed period of limitation.

Facts Of The Case:

The case revolves around Plot No. 57, originally owned by three minor sons of Rudrappa. In 1971, their father and natural guardian, Rudrappa, sold this plot to Krishnoji Rao through a registered sale deed without obtaining prior permission from the court. Later, in 1993, Krishnoji Rao sold the same plot to Smt. K. Neelamma. Meanwhile, after the minors attained majority, they, along with their mother, sold the very same Plot No. 57 to K.S. Shivappa in 1989. Shivappa, who had also purchased the adjacent Plot No. 56 under similar circumstances, then built a house on the combined property. Neelamma, claiming title through the earlier sale chain, sued Shivappa for declaration and injunction. The core legal dispute was whether the sale by the father was binding on the minors or if their subsequent sale upon majority effectively invalidated the earlier transaction, with the courts differing on whether a formal lawsuit for cancellation was necessary to repudiate the voidable sale.

Procedural History:

The dispute originated when Smt. K. Neelamma filed Original Suit No. 76/1997 against K.S. Shivappa before the Trial Court (Additional Civil Judge, Jr. Div., Davanagere), which dismissed the suit, upholding Shivappa’s title. Aggrieved, Neelamma preferred Regular Appeal No. 67/2003 before the Principal Civil Judge (Sr. Div.), Davangere, which allowed the appeal and set aside the Trial Court’s judgment, ruling in Neelamma’s favour. Subsequently, K.S. Shivappa filed a Second Appeal before the High Court, which was dismissed, affirming the First Appellate Court’s view. This led Shivappa to file the present Civil Appeal No. 11342 of 2013 before the Supreme Court, which allowed the appeal, set aside the judgments of the High Court and the First Appellate Court, and restored the decree of the Trial Court.

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Court Observation:

The Supreme Court authoritatively observed that a sale of a minor’s immovable property by a natural guardian without prior court permission, in violation of Section 8 of the Hindu Minority and Guardianship Act, 1956, is voidable at the minor’s instance. Crucially, the Court held that such a voidable transaction can be repudiated by the minor upon attaining majority not only by filing a suit for its cancellation but also through an unequivocal act of conduct, such as executing a fresh sale deed in favour of a third party within the prescribed limitation period. The Court emphasized that this avoidance, whether by suit or conduct, relates back to the inception of the transaction, rendering it void ab initio. Additionally, the Court noted the fatal flaw in the plaintiff’s case, as she failed to personally enter the witness box to prove her title and her power-of-attorney holder could not depose on facts within her personal knowledge.

Final Decision & Judgement:

The Supreme Court allowed the appeal filed by K.S. Shivappa and set aside the judgments of the High Court and the First Appellate Court. It restored the decree of the Trial Court, thereby declaring that Shivappa holds valid title to Plot No. 57. The Court conclusively held that the minors had validly repudiated their father’s unauthorized sale by executing a subsequent sale deed in favour of Shivappa upon attaining majority, and it was not mandatory for them to file a separate lawsuit for cancellation. Consequently, the suit filed by Smt. K. Neelamma was dismissed with no order as to costs.

Case Details:

Case Title: K.S. Shivappa vs. Smt. K. Neelamma
Citation: 2025 INSC 1195
Appeal Number: Civil Appeal No. 11342 of 2013
Date of Judgement: October 07, 2025
Judges/Justice Name: Justice Pankaj Mithal and Justice Prasanna B. Varale

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