Exploring Recent Developments in Indian Succession Laws

Exploring Recent Developments in Indian Succession Laws

( An Insight into Inheritance of Property Rights under the Hindu Succession Act 1956 : Part II)

By SangsLegal.com

9th December 2023

Indian succession laws have undergone significant changes in recent years, aimed at providing a more rationalized and uniform approach to the distribution of assets after an individual's death. The recent changes to the Indian Succession Laws and the consequential case laws carry wide-ranging implications. They have reinforced the principles of equality, non-discrimination, and fairness in property inheritance, irrespective of gender. These developments have brought about a significant transformation in societal attitudes by challenging age-old customs that deprived women of their rightful share in the ancestral property.

I. New General Rules:

In an effort to simplify and modernize the succession process, the government introduced new general rules. The Hindu Succession (Amendment) Act, 2005 (39 of 2005) was enforced with the objective of eradicating gender-biased clauses present in the Hindu Succession Act, 1956. As per the amendment, a daughter of a coparcener is granted equal rights and becomes a coparcener from the moment of birth, just like a son.

A. The Hindu Succession (Amendment) Act, 2005:

Under this amendment, daughters now have coparcenary rights in the ancestral property of the Hindu Joint Family. They have the same legal entitlement as sons, even if the father passed away prior to 2005. This amendment rectified the gender bias prevalent in the original 1956 Act and contributed to empowering women by improving their economic and social standing within their families.

B. The Indian Succession Act, 1925:

The Indian Succession Act governs the distribution of assets in cases where a person dies without leaving a will. Recent developments have introduced provisions to simplify the process of intestate succession. This includes adopting a more inclusive definition of heirs, incorporating the rights of adopted children, and introducing provisions for non-resident Indians (NRIs) in order to address the complexities arising from global mobility.

II. Amendments:

A. The Personal Laws (Amendment) Act, 2019:

This amendment aimed to address the complexities arising from personal laws concerning various communities in India. It aimed to rationalize and harmonize succession laws to ensure fairness and equal treatment for all individuals, irrespective of their religious affiliation. However, it must be noted that personal laws still serve as the primary source of guidance for succession matters within specific religious communities.

B. The Indian Succession (Amendment) Act, 2020:

The Indian Succession (Amendment) Act, 2020 revised the Indian Succession Act, 1925. One significant change introduced by this amendment is the recognition of “living wills” or advance medical directives. This provision allows individuals to express their consent regarding medical treatment in the event of incapacitation. It ensures that their wishes are respected and alleviates potential disputes among family members during such difficult times.

III. Recent Developments in Indian Succession Laws

Recently, significant developments have been observed in succession laws. These substantial modifications to succession laws are attributed to amendments or judgments delivered by various courts in the country.

  1. The amendment 2005 had retrospective effect, enabling daughters to claim their equal rights to ancestral property, including proceedings initiated before the amendment. The Supreme Court emphasized the importance of gender equality and reinforced the rights of daughters, even in cases where the father had passed away prior to the amendment.

(Prakash & Ors v. Phulavati & Ors (2015)

2     2. Even if a father had died before the 2005 amendment, daughters still had the right to claim an equal share in the ancestral property. The daughter's right was not dependent on whether her father was alive or not when the amendment was enacted. (Danamma @ Suman Surpur & Anr. v. Amar & Ors (2018)

           3.  The daughters possess the right to inherit their parents' self-acquired property, as well as any other property over which they hold complete ownership. This rule extends to situations where a daughter's parents died intestate without leaving behind a will prior to the enactment of the Hindu Succession Act in 1956. (Arunachala Gounder (dead) v. Ponnuswamy)

 4.     In the event that a Hindu woman dies intestate without a valid will and does not have any children, the property she inherited from her father or mother would be transferred to the descendants of her father. Conversely, the assets she inherited from her husband or father-in-law would be granted to the heirs of her husband.

 5.    If a married woman, who has a spouse and children, passes away, her properties, including any inherited properties, would be transferred to her husband and children as stated in Section 15(1)(a) of the Succession Act. ( Agnes alias Karpaga Devi)

 6.  According to the recent ruling of the Madras High Court (HC), under the Indian Succession Act of 1925, when a man passes away without leaving a will, his assets are to be divided among his widow and children. Evidently, the high court has clarified that the mother of the deceased holds no right to her late son's properties.

 7. An adopted child holds the status of a Class-I heir, thereby possessing the same rights as a biological child. However, if the adoptive father has been disqualified from inheriting any property due to their involvement in a criminal act, the adopted child cannot claim ownership of the paternal property. Furthermore, even if the adoptive father converts to another religion, and the adopted child follows the same religious beliefs, the child is still unable to inherit the ancestral property.

8. According to the ruling of the Telangana High Court, once a child is adopted, they no longer hold the status of a coparcener within their birth family. As a consequence, they relinquish any rights or claims they may have had over the ancestral property of their birth family. However, if a partition of the property had already occurred before the adoption, and the adopted individual had been allotted a specific portion of the property, they would be allowed to carry that portion with them to their new family.

 9.  A Hindu man abandons his wife without obtaining a legal divorce and subsequently remarries; the initial marriage remains valid under the law, making the first wife and their children legitimate beneficiaries. However, if a divorce takes place, the first wife will no longer have any rights to claim the property, and all her personal belongings will be exclusively hers. In cases where both partners financially contribute to acquiring a property, it is important to maintain proper documentation that clearly indicates the percentage of monetary contribution made by each spouse. This documentation becomes crucial in the event of a divorce.

 10.   If a husband's first wife has passed away or divorced before he remarries, the second wife is entitled to all the legal rights on her husband's property. This includes ownership and inheritance rights. Furthermore, her children hold equal rights to their father's share, alongside the children from the first marriage. However, it is crucial to note that if the second marriage is not recognized as legal, neither the second wife nor her children enjoy the privilege of being legal heirs in the ancestral property of the husband.

 11.  The Gujarat High Court recently held that children born out a widow’s first marriage have a right in her property the woman receives from her second husband. This remains true even if the children were born out of wedlock or through an illicit relation.

 12. During the wife’s lifetime, the husband has no right over her property. If the wife passes away, her share will devolve upon her husband and children alike. If the wife gets her share in her lifetime, the husband can inherit the same. If she hasn’t inherited from her parents or ancestors during her lifetime, the husband cannot claim it. If a man has bought property in the name of his wife with his own finances, he can retain the ownership even after her death.

13.  A Hindu father or any other managing member of a Hindu Undivided Family possesses the authority to gift ancestral property solely for a 'pious purpose', which refers to a gift intended for charitable and/or religious endeavors. Consequently, a deed of gift related to ancestral property made 'out of love and affection' does not fall under the purview of the term 'pious purpose'.

14. The coparcenary right to inherit family property extends even to children born out of a live-in relationship, as decided by the Supreme Court. Offspring born to live-in partners who have resided together for a significant duration are entitled to assert their rights over their father's ancestral property.

15. The situation of half-blood children often occurs when one child is born to a father with a different spouse or partner, while another child is born to the same mother but with a different spouse or partner. In these cases, if one parent is common to both children due to remarriage or divorce, a preference is typically given to the child who is biologically closer to that parent in terms of inheritance and other matters.

16. The children born out of void or voidable marriages have the right to inherit their parent's assets, as per the recent ruling. It should be noted that this ruling is specifically applicable to Hindu joint family properties governed by Hindu Mitakshara Law.

17. According to Section 16 (3) of the Hindu Marriage Act illegitimate children born out of wedlock have limited rights to inheritances, specifically pertaining to their parents' properties only and not those of any other relation. This provision determines the inheritance rights of illegitimate children, stating that they are solely entitled to inherit their father's personal possessions, excluding any property belonging to their paternal family. However, a Supreme Court verdict has affirmed that unmarried children have the right to claim not only their father's personal assets but also the properties inherited from their ancestors.

18. The Kerala High Court recognized the rights of a Christian wife in accordance with Indian succession laws. It was concluded by the court that if a legally acceptable will is not present, the wife is entitled to an equal share of her husband's estate, which encompasses jointly owned properties as well. This verdict underscores the importance of gender equality and equitable distribution of wealth. (Nelson Elias vs. Mariya Gracy)

19. The Surrogacy (Regulation) Act, 2020, for instance, provides legal recognition to intended parents by granting them the same rights and responsibilities as biological parents. In doing so, it ensures that children born through surrogacy are not disadvantaged in terms of inheritance and other legal rights.

20. The Supreme Court addressed the concept of ‘benami’ transactions in the context of succession laws. The court held that a benami transaction cannot be relied upon to establish the title of the person claiming under the benami transaction. This judgment aimed to prevent fraudulent practices and promote fairness in succession matters. ( Kale v. Deputy Director of Consolidation)

Conclusion:

The recent developments in Indian succession laws demonstrate a progressive shift towards equality, inclusivity, and modernization. The introduction of new general rules, provisions, amendments, and landmark case laws has aimed to ensure gender equality, harmonize personal laws, simplify the succession process, and protect individuals' autonomy. These reforms have greatly contributed to a more just and equitable distribution of assets after an individual's demise. Nonetheless, it is essential to continue monitoring the implementation and interpretation of these laws to ensure their effective application and address any challenges or gaps that may arise.

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