Section 22 HSA: Preferential right to acquire property in certain cases

Section 22 of Hindu Succession Act: Preferential right to acquire property

Official Bare Act Text

Override / Mandate Mens Rea (Intent) Actus Reus (Conduct) Punishment Limitation Monetary

(1) Where, after the commencement of this Act, an interest in any immovable property of an intestate, or in any business carried on by him or her, devolves upon two or more heirs specified in class I of the Schedule, and any one of such heirs proposes to transfer his or her interest in the property or business, the other heirs shall have a preferential right to acquire the interest proposed to be transferred.

(2) The consideration for which any interest in the property of the deceased may be transferred under this section shall, in the absence of any agreement between the parties, be determined by the court on application being made to it in this behalf, and if any person proposing to acquire the interest is not willing to acquire it for the consideration so determined, such person shall be liable to pay all costs of or incident to the application.

(3) If there are two or more heirs specified in class I of the Schedule proposing to acquire any interest under this section, that heir who offers the highest consideration for the transfer shall be preferred.

Explanation.— In this section, "court" means the court within the limits of whose jurisdiction the immovable property is situate or the business is carried on.

Legal Commentary & Landmark Judgments: Section 22

Section 22 of the Hindu Succession Act, 1956 confers a preferential right of pre-emption on Class I heirs to acquire undivided inherited business or immovable property.

Statutory Rights & Obligations: Section 22 creates an important statutory right of pre-emption designed to keep inherited property within the immediate family.
Statutory Commencement & Effective Date: Sub-section (1) provides that where, after the commencement of this Act, an interest in any immovable property of an intestate, or in any business carried on by him or her, devolves upon two or more heirs specified in Class I of the Schedule.
Operational Mechanism & Scope: Any one of such heirs proposes to transfer his or her interest in the property or business, the other heirs shall have a preferential right to acquire the interest proposed to be transferred.
Sub-Section (2) Provision: Sub-section (2) prescribes that the consideration for such acquisition may be determined by agreement, or in the absence of agreement, by the court upon an application made in that behalf.

This statutory framework establishes clear operational guidelines, balancing legal compliance with procedural safeguards.

Key Landmark Precedents:

Babu Ram v. Santokh Singh (2019) 14 SCC 162: The Supreme Court authoritatively held that the preferential right under Section 22 applies to all immovable property, including agricultural land, and is not limited to residential properties. The right of pre-emption under Section 22 is a statutory incident of succession among Class I co-heirs.
Ganesh Chandra Pradhan v. Rukmani Mohanty (AIR 1971 Ori 65): The High Court affirmed that Section 22 applies when a co-heir 'proposes to transfer'; if a transfer is executed to a stranger without giving notice, the aggrieved co-heir can enforce pre-emption through court intervention.

Legal Commentary:

Section 22 operates as a powerful shield against the introduction of outside strangers into inherited family estates and businesses. When a co-heir intends to sell their undivided share, they must first offer it to their fellow Class I co-heirs. If an alienation is made to a third-party purchaser in violation of Section 22, the non-alienating Class I heirs can file an application or civil suit to compel transfer of that share to themselves at court-determined market value.

Section 22: Preferential right to acquire property in certain cases

Section 22 of Hindu Succession Act: Preferential right to acquire property

Legal Commentary & Landmark Judgments: Section 22