What Is “Hakka Sod Patra”?

Hakka Sod Patra is a relinquishment deed limited to the state of Maharashtra where a person relinquishes his property in the name of another person legally or formally. In other words, giving up the rights of the immovable property in the name of the other. This deed was formulated under section 17 of the Registration Act of 1908[1]. There is stamp duty once the deed is executed with the amount of Rs. 100/- in Maharashtra.

This deed is used when the person dies without making a will and later on the siblings divide it equally. This also includes monetary considerations as relinquishment.

There is a formal procedure to draft a relinquishment deed.

  1. The deed must be drafted by an advocate.
  2. For the execution of the deed, the stamp duty is necessary.
  3. In the sub-registrar office, the dates are finalized.
  4. A Government registration fee is required.
  5. Both the parties involved and at least two witnesses are required at the office.
  6. The deed is collected after a week.

For a relinquishment deed to take place within the jurisdiction, there are four important elements to it:

  • A legal document- which is required by the heir of the property to distribute it among the other family members with all the legal rights.
  • Irrevocable- if there would be no consideration or if the property is not owned by more than one person, the deed can easily be irrevocable.
  • Consideration- the deed cannot be made without consideration.
  • Registration- the deed was formulated under the Registration Act of 1908, so it is mandatory to register the deed in the sub-registrar office.

The difference between Relinquishment Deed and Release Deed:

In a relinquishment deed, the ancestral property is transferred in the name of other family members. This deed, in particular, cannot be nullified once the legal documents are prepared.

Whereas in release deed, the property can be enforced upon anyone with the sheer interest and not necessarily his family members or relatives. This deed can be revoked anytime depending upon the claimant’s interests.

The difference between Gift Deed and Relinquishment Deed:

In a gift deed, the person transfers the right of the immovable property into the name of other and once the transfer has proceeded, the person cannot reverse the transfer nor claim any monetary consideration. In a gift deed, not only immovable, but the movable property also transferred in the name of other persons such as jewellery, where registration is not compulsory. The property is expected to sell out 2-8% in case of relatives, and 3-8% for non-relatives. For physical shares, the stamp duty is 0.25%[2]

The same is the case in relinquishment deed, where the immovable property is being transferred in the name of the others but the difference is, only family members. This deed does not include any movable property as such. This deed is most commonly used when the heir of the property dies and the property is divided among the siblings and this carries on for generations.

Revocation of Hakka Sod Patra, the Relinquishment Deed:

Revoking the deed as per our interests anytime is not possible. Once the deed is being executed legally and is being registered, then it cannot be nullified. It cannot be revoked on the ground that the person changed its mind suddenly. This will further lead to a situation where the person will not be able to reclaim it.

The relinquishment deed can be revoked once there is no consideration concerning for the contract. It can only be challenged on the grounds of fraud, misrepresentation, or undue influence. The person can approach the Civil Court once he had decided to cancel the deed and no longer has an interest in it. There are limitations to this deed, where the consideration is less than the stamp duty and it is being executed against one’s interests. According to The Limitation Act in India, the period of limitation is three years.

Importance of Hakka Sod Patra:

The deed, Hakka Sod Patra is a relinquishment deed which is an important deed for a family in India. As this deed holds the responsibilities of the property, it is important for the other family members or siblings need to take care of it legally.

There are cases where the property heir dies without making a will and this leads to future rifts among the siblings or relatives illegally. Further claims are being made and this results in the loss of the property. Related case law: Mst. Rukhmabai vs LalaLaxminarayan And Others on 17 November 1959[3]

References:

[1]https://indiankanoon.org/doc/1489134/

[2]https://wealthymatters.com/2014/02/05/gift-deed-or-relinquishment-deed/

[3]https://indiankanoon.org/docfragment/519726/?formInput=relinquishment

This article is authored by Neeati Jha, First-Year, BBA. LL.B student at Birla Global University

Also Read – Is Registration of a Gift Deed is Mandatory?

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