Legal Question in Real Estate Law in India

Sir

Please refer to Section 8 of THE HINDU MINORITY AND GUARDIANSHIP ACT, 1956, which provides as under : -

" 1) The natural guardian shall not, without the previous permission of the Court,-

(a) Mortgage or charge, of transfer by sale, gift, exchange or otherwise, any part of the immovable property of the minor; or

(b) Lease any part of such property for a term exceeding five years or for a term extending more than one year beyond the date on which the �nor will attain majority.

2) Any disposal of immovable property by a natural guardian, in contravention of sub-section (1) or sub-section (2), is voidable at the instance of the minor or by any person claiming under him.

3) No Court shall grant permission to the natural guardian to do any of the acts mentioned in sub-section (2) except in the case of necessity or for an evident advantage to the minor. "

So in view of the aforesaid provisions of the law, if the property is in the name of minor, then you cannot mortgage it without the previous consent / sanction from the Court. So bank is right in its contention.

The solution to this is, you have to move an application u/s 8 of the Act, to the concerned, seeking permission from the court to mortgage the property of the Minor. You have to justify your purpose for the mortgage and have to satisfy the court that such mortgage is in the interest and for the benefit of the minor. If you succeed the court will grand permission, then you can take loan from the Bank.

Should you need any assistance, then feel free to contact.

Best Regards

Vivek N. Mapara

www.vnmlaws.com

[email protected]