Synopsis

The Delhi High Court ordered a son and his wife to vacate his parents' house after ownership documents proved that his mother was the sole owner of the house which his father purchased. The court emphasized that mere residence does not confer ownership rights.

Recently, the Delhi High Court ruled that Mr Singh and his wife from Karawal Nagar must vacate his parents’ house and remove any locks they put on it. This judgement came in a case where the son (Mr Singh) continued to stay in his mother's house after marriage even though he does not have any independent title to the house, while his mother has a General Power of Attorney (GPA), an Agreement to Sale and a Will, proving she is the sole owner of the house.

What happened in this case?

Mrs Sitara Devi (mother) who is the wife of late Ram Dulare (father) and lives in her house in Karawal Nagar Delhi since the time they purchased it in 1996 from Mr Umed Singh Rawat. Late Mr Ram Dulare was employed with MTNL and from his hard earned savings, he purchased this house property in her name on the basis of the General Power of Attorney (GPA), Agreement to Sell, Will and Receipt, all dated November 1, 1996, from Umed Singh Rawat.



However, after her son (Singh) married, he and his wife was permitted by Devi to reside in this house property purely on account of their family relationship. However, the title to this house still exclusively remained with Devi and her son had no independent right, title or interest therein.

Why did the son and wife lose this case?

Advocate Shourya Garg said to ET Wealth Online: The son admitted that his father had bought the property back in 1996, even though it was registered in his mother's name. That single admission ended up costing him the case, because you cannot accept your father's role in a purchase and then also argue that the purchase itself does not hold up legally. Those two positions cancel each other out. Once he took that stand, the court did not even need to weigh in on the bigger Suraj Lamps precedent that usually comes up in these benami-adjacent disputes.



Garg says: "This ruling means the son and his wife have to vacate the property."

Should you buy property in spouse's name?

Garg says that for someone buys a property in a spouses name for whatever reason, tax convenience sentiment and everyone in the family just knows the real story at that time. Nobody thinks to write it down because why would you. Everyone trusts each other. Then years go by. People are no longer around to say what actually happened and it’s just one persons word against another in a courtroom.



According to Garg, a basic gift deed or written declaration at the time would have prevented this entire dispute. On the sons side, Garg says that he would say the lesson is to be far more careful about what you admit during a legal proceeding. He probably did not think that acknowledging his father’s role would end up costing him the case, but that is exactly what happened here.

Delhi High Court discussion

Justice Neena Bansal Krishna of Delhi High Court gave this judgement.

Son himself admitted that in 1996 his father bought the property

The Delhi High Court observed that in a recent judgement (Suraj Lamp & Industries (P) Ltd. v. State of Haryana) it was held that an Agreement to Sale/GPA/Will transaction does not, by itself, convey absolute title in an immovable property.



However, in Devi’s case her son himself is claiming his title in the property through her.



“Once the Defendant (Singh, son) himself is recognising the rights of the Plaintiff (Devi, mother), he cannot rely on the Suraj Lamp and Industries Pvt. Ltd (case) to assert that the sale documents through which his father purchased the property, do not confer absolute right, title on the Plaintiff (Devi, mother).”

Son invoked Benami Property Transactions Act, 1988 to disqualify his mother from getting title to this property

Singh (son) invoked Benami Property Transactions Act, 1988 and argued that his mother (Devi) had no independent source of income so as to buy such a property in Delhi. However, Delhi High Court observed that his mother never made such claims and instead maintained the position that her husband saved money from his MTNL salary and purchased this property.



Significantly, Singh has also admitted the employment of his father with MTNL.



The Delhi High Court said that as per Section 2(9)(A) of the Prohibition of Benami Property Transactions Act, 1988 the legal provision defines a benami transaction, and also provides an exception mentioned in clause (iii). This clause (iii) specifically excludes a property held by an individual in the name of his spouse or child, where the consideration has been provided or paid out of the known sources of such individual.



Based on the above legal position, the Delhi High Court ruled that merely because a husband paid the money to buy a property in wife's name, it would not mean that the said property purchase transaction is a benami transaction.



So the Delhi High Court ruled that merely because the sale consideration was paid by the husband, would not create a right of the son, in the property.

Delhi High Court orders Singh to vacate

Singh’s Rs 1.5 lakh and Rs 60,000 money contentions were rejected as no evidence was given by him to prove these aspects.



Delhi High Court said: “Even otherwise, mere contribution towards household expenses, construction or repairs of a property cannot, by itself, does not confer any right of co-ownership.”



Delhi High Court also said that merely residing together as members of one family and sharing household expenditure does not convert a property standing in the name of one family member into jointly owned property. No common fund or other source from which the property was jointly acquired, has been proved.



The Delhi High Court thus ruled that Singh has failed to establish any independent right, title or interest in the property. Their occupation, being only the son and daughter-in-law of the Plaintiff (Devi), was rightly held to be permissive in nature by the district judge.

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