The Dispute We All Want To Avoid: Inheritance

A suit was filed among four brothers seeking division of three properties of their father in 1968. Being one of the oldest and the most prominent property disputes involving three generations, the original parties died during the case's pendency, and the proceedings were pursued by their children, who were the legal heirs, many of whom died too, including grandchildren. Who got what?

In India, family property discords can be rooted back to the classical era where princely families would engage in heinous battles being carried out at ornately decorated royal chambers to preserve their wealth. What has changed over the years is the stage for the battle, now courts, where matters remain pending for many years, instead of families resolving their affairs harmoniously. About 2/3rd of the cases pending in Indian courts pertain to property disputes. Being widespread, families engage in fierce battles and bloodshed to acquire a share in the family fortunes with visibility across every strata of the society from low-income households to extremely royal and wealthy families. But why do such disputes occur in the first place and prolong for many years? The lack of awareness about inheritance rights in India is the leading cause of family disintegration. It is essential to understand the term inheritance and the rights of a legal heir.

As the name suggests, inheritance is defined as the assets left to a descendant after the demise of the possessor. The right of inheritance is the transfer of an individual's property, titles, debts, and liabilities to his legal heir upon his or her death which is carried out either through a will or following the laws of succession. The Hindu Succession Act defines that the deceased's heirs will be divided into distinct classes ranging from class I to class XI, each with a different stake in the property.

Belonging to Class I*, sons have the legal right by birth to claim a share in their father’s and grandfather’s property. He is entitled to an equal right in his grandfather’s ancestral property along with other family members. A grandson is entitled to inheritance rights in his grandfather’s self-acquired or separate property when his father predeceases his grandfather. In circumstances where the father does not leave behind a will, the son will have equal rights with other family members, when it comes to self-acquired or separate property. In case there is no one belonging to Class I, the inheritance is passed onto Class II, if no one is alive from Class II, it is passed on to Class III, and so on.

*Class I includes the immediate family of the deceased, i.e., son, daughter, wife, mother, son of predeceased son, etc.

Now that we have understood the inheritance rights granted to a legal heir, let’s take a deeper look at the lawsuit mentioned above. The litigation can be divided into three plausible scenarios. However, the solutions may vary depending upon each altercation.

Scenario 1: If the deceased has written a will

The importance of a will cannot be overstated as it is a convenient method of resolving property feuds. Despite the owner of a property leaving behind a registered will, disputes are prevalent since the deceased's assets must be distributed. Leaving a legally binding will may reduce the disagreements and bitterness among families but does not always lead to settlements as wills are challenged by unhappy beneficiaries in the court of law quite often. In cases where there is a will, there is less ambiguity and the settlement process is relatively easier.

Scenario 2: If the property owner dies intestate i.e., no will is prepared

India has been witnessing siblings squabbling over property inheritance and dragging the matter to court if the person dies intestate i.e., drawing no will. In unforeseen circumstances, for example, Covid-19 which caused insurmountable deaths, the deceased would not have anticipated it, and so there is a very high probability that they would not have prepared a will. Such matters usually follow the intestate succession route as mentioned in the Indian Succession Act for division of property. As per law, every legal heir belonging to the same class has equal claim on the assets owned by the deceased.

Scenario 3: Dividing property though family settlement

To avoid delays and getting embroiled in legal disputes in court, a family settlement is a mutual agreement between all the stakeholders entitled to receive a share in the property, whereby they decide how the assets would be split by means of mutual understanding. Involving a neutral third party usually simplifies the process and helps the beneficiaries arrive at an amicable understanding. However, in situations where there is no resolution, the only option is to file a partition suit.

Scenario 4: Resolving the property dispute by filing a partition suit in court

When the co-owners fail to arrive at a mutual agreement, or any of the stakeholders wish to split the property as per their shares in the property, a suit can be filed in court. In such a case, the court orders an investigation by appointing a commissioner who is responsible for assessing the property and providing an official report. The share of each co-owner is determined based on the commissioner’s report and the property is divided lawfully.

Owing to the complex nature of the case and long pendency of matters in our judicial system, the above case took nearly five decades to get resolved. The litigants failure to comply with the court’s order of arriving at a mutual consensus within a period of six months led to passing of a subsequent verdict by the court declaring auction of the properties and the amount being divided among the litigants on the basis of their shares respectively, thus bringing an end to the long-standing family battle in 2017.

Property feuds are on the rise in India. Given how valuable and complex real estate assets are, one must ensure that the property is protected by means of a will to avoid property disputes and save the family’s honor.

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