If you are stuck in such a situation, here is what to do.

A complex family property situation has emerged for Priya and her husband, Rohan, following the recent passing of Rohan’s father, Mr. Verma. About fifteen years ago, Mr. Verma had executed a gift deed for a flat in the “Sunrise Towers Co-operative Housing Society” in the city of Anandpur, jointly in favour of Rohan and Priya. However, Mr. Verma also remained a shareholder in the society for that flat. He had filled out a nomination form provided by the society, clearly stating that upon his death, his share should be transferred to his son, Rohan. Despite this, the share certificate still includes Mr. Verma’s name.

The current issue arises as Rohan’s mother, Mrs. Verma, is consolidating other family properties into her own name. She intends to nominate her daughter, Sunita, for these assets. To facilitate this, she has asked Rohan to sign a legal document, likely a relinquishment deed, confirming he will not claim any share in those specific properties. Rohan is agreeable to this part of the arrangement.

However, Priya and Rohan are deeply concerned about their primary residence. They are unsure if Mrs. Verma, as a legal heir, can stake a claim on the share of the flat that was in Mr. Verma’s name, even though a gift deed exists and a nomination was made in Rohan’s favour.

Advice in such cases

Navigating family property disputes requires a clear understanding of the law surrounding gifts, nominations, and succession. Here is some general advice:

• The status of the Gift Deed is paramount. If the flat was legally and unconditionally gifted to Rohan and Priya through a registered gift deed 15 years ago, it became their absolute property at that time. Mr. Verma’s subsequent retention as a shareholder could be a procedural remnant that needs to be legally clarified.
• A nomination in a co-operative society does not confer ownership. The Supreme Court of India has consistently held that a nominee is merely a trustee who holds the deceased’s assets on behalf of the rightful legal heirs as determined by succession law.
• The document Rohan is being asked to sign must be scrutinised by a legal expert. He must ensure it is a specific relinquishment deed that only pertains to the other properties and does not contain any broad language that could jeopardise his rights in the gifted flat.
• Consult with Lawyer: The very basic and important step to start is talk to Lawyer / advocate. You should not hesitate in paying his consultation fee i.e. might be in range of Rs. 10,000 to 50,000 depends case to case. He is helping you in this situation of come out. He is expert in the domain and can help you explain the procedure which you might have never explored. A good lawyer can get the issues resolved much faster than you think.

Applicable Sections of Law

This case involves an interplay of several key Indian laws:

• The Hindu Succession Act, 1956: This Act governs the distribution of property of a Hindu male dying without a will (intestate). According to this law, Mr. Verma’s property would be divided equally among his Class I heirs, which include his wife (Mrs. Verma), his son (Rohan), and his daughter (Sunita). The central question is whether his share in the flat was still his “property” at the time of his death.
• The Transfer of Property Act, 1882: Sections 122 and 123 of this Act define a ‘gift’ and the legal requirements for it. For immovable property like a flat, a gift is only valid if it is made through a registered instrument signed by the donor and attested by two witnesses. If these conditions were met, the ownership was transferred 15 years ago.
• State Co-operative Societies Act: The specific state’s Co-operative Societies Act will have provisions regarding the transfer of shares and the role of a nominee. However, these provisions are subservient to the national succession laws.

If you are the complainant

If you are in Priya and Rohan’s position, you should take the following steps to protect your interests:

• Gather and secure all relevant documents, including the original registered Gift Deed, the society share certificate, the nomination form filed by Mr. Verma, and his death certificate.
• Do not sign any document presented by other family members without thorough legal review. The proposed relinquishment deed is a critical document that needs to be vetted to prevent any unintended loss of rights.
• If Mrs. Verma formally asserts a claim, your lawyer can issue a legal notice clarifying your ownership based on the gift deed and demanding she cease her claim.
• If the dispute escalates, you may need to file a suit for declaration and injunction in a civil court, asking the court to officially declare you as the sole owners of the flat and prevent Mrs. Verma from interfering with your possession.
• Consult with Lawyer: The very basic and important step to start is talk to Lawyer / advocate. You should not hesitate in paying his consultation fee i.e. might be in range of Rs. 10,000 to 50,000 depends case to case. He is helping you in this situation of come out. He is expert in the domain and can help you explain the procedure which you might have never explored. A good lawyer can get the issues resolved much faster than you think.

If you are the victim

If you are in Mrs. Verma’s position and believe you have a rightful claim, here is the legal perspective:

• As the widow of the deceased, you are a Class I legal heir under the Hindu Succession Act and have an equal right to a share in all properties owned by your husband at the time of his death.
• Your claim depends entirely on whether the transfer of the flat via the gift deed was legally complete and absolute. If there were flaws in the gift deed or if your husband retained legal ownership of his share, then that share is part of his estate and you are entitled to a portion of it.
• The nomination in favour of your son does not extinguish your rights as a legal heir. The nominee is legally obligated to distribute the asset among all rightful successors.
• You can file a partition suit in a civil court to claim your share of all your late husband’s properties, including his share in the flat in question if it is proven to be part of his estate.
• Consult with Lawyer: The very basic and important step to start is talk to Lawyer / advocate. You should not hesitate in paying his consultation fee i.e. might be in range of Rs. 10,000 to 50,000 depends case to case. He is helping you in this situation of come out. He is expert in the domain and can help you explain the procedure which you might have never explored. A good lawyer can get the issues resolved much faster than you think.

How the police behave in such cases

Property and inheritance disputes are primarily civil in nature. The police have a very limited role and will generally not intervene. They will not register an FIR for claims of ownership or share in a property. Their involvement is only warranted if there are allegations of a criminal offence, such as forgery of documents, criminal trespass, mischief, or criminal intimidation. In a situation like this, the police would advise both parties to seek resolution through the civil courts.

FAQs people normally have

Q: Does a nomination in a housing society make the nominee the absolute owner?

A: No. This is a common misconception. A nomination is only a mechanism for the society to discharge its liability by handing over the deceased’s share to a designated person. That person, the nominee, then holds the property as a trustee for the actual legal heirs, who are determined by the law of succession or a valid will.

Q: What is legally more powerful: a gift deed or a nomination?

A: A valid, registered gift deed is far more powerful. A gift transfers ownership during the lifetime of the donor. Once the gift is complete, the property is no longer part of the donor’s estate. A nomination only comes into effect after death and, as explained, does not determine ownership.

Q: What are the risks of signing the relinquishment deed?

A: The risk lies in the wording. If the deed is not carefully drafted to be specific to the “other properties,” it could be interpreted as Rohan giving up his rights to all family properties, which might inadvertently include his inherited interest in the gifted flat. It must be reviewed by a lawyer.

What evidence is required?

To establish a clear legal position, the following documents are crucial:

• The registered Gift Deed for the flat. This is the most important piece of evidence.
• The Share Certificate from the Sunrise Towers Co-operative Housing Society.
• The Nomination Form submitted by Mr. Verma.
• Mr. Verma’s Death Certificate.
• The draft of the Relinquishment Deed that Rohan is being asked to sign.

How long will the investigation take?

As this is a civil matter, there is no “police investigation.” The timeline for resolution depends on the path taken. An amicable settlement negotiated between the parties with the help of lawyers is the quickest way and can be resolved in a few months. However, if the matter proceeds to court through a partition or declaratory suit, it can be a lengthy process. Contested property disputes in Indian civil courts can often take several years to reach a final judgment.

Advocate Sudhir Rao, Supreme Court of India