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Life Estate: Its Shadows In Indian Legal System

A Life estate is a legal concept that gives a person the right to own and enjoy the property for the rest of their life or as mentioned in the will of the life estate creator. This legal arrangement has strong origins in English law, and its effect can be seen in a variety of legal systems around the world. In this article, we shall look at the complexities of life estate and its implications on Indian legal concepts.

A life estate is an estate in real property measured by the life of one or more persons, which does not terminate at any fixed or determinable time; a life estate per autre vie is an estate measured by the life of someone other than the life tenant. The owner of the life estate is known as a life tenant. When the life tenant dies, the real property in the life estate is usually transferred to the remainderman who is also typically named in the life estate agreement.

In simple words, it can be said that if a person gives his/her property to another person for enjoyment for his lifetime and makes him a partial owner/guardian of the property without giving him absolute ownership over the property is called a life estate. The life estate holder has the right to possession, enjoyment, and profit against the property but cannot transfer, sell or destroy it as he/she is not the absolute owner of the property.

Which section gives the power to create a life estate?
Section 30 of the Hindu Succession Act, 1956 creates absolute power in a Hindu to dispose of his property by will and includes the right to create limited or restricted estate in favor of a female. This section does not impose any restriction, express or implied, except that he should be capable of disposing of such property. The use of expansive language made wider by explanation intended that any property disposed of by will by a Hindu who is capable of disposing of such property shall be subject to restriction and conditions imposed by the testator himself in the will.[1]

The right and power of a Hindu to create a limited estate or restricted estate and its extent was recognized in Jatindra Mohan Tagore v. Ganendra Mohan Tagore.[2]

"… There is no reason why a Hindu should not, by will, create an estate for life."

Hence it creates absolute power in a Hindu to dispose of his property by will. The only pre-condition is that the testator should be capable of disposing of the property.

Does the life estate of a widow under a will get enlarged into an absolute estate under Section 14(1) of the Hindu Succession Act, 1956?

It was a major question that was faced by the Indian judiciary after the amendments made to the Hindu Succession Act, of 1956. Section 14(1) of the act declares that 'a female Hindu's property is her absolute property. The phrase absolute here means that any property she earned, inherited, received as a gift, or received as maintenance before or after the commencement of this act will be solely hers.

According to Section 14(1), it makes no difference how the female got the property, and any property she possesses after the start of this act is regarded as her absolute property, as held in the case of Chaudhary v. Ajudhia,[3]. However, under Section 14(2) of this Act, if the property is acquired for the first time, and that too through a 'gift without any pre-existing right', it cannot be recognized as her absolute property.

Hence the life estate created by a will does not become an absolute property of a female by section 14(1) as it falls under the exceptions of section 14(2), which is proviso to section 14(1). Section 14(2) states that:
(2) Nothing contained in sub-section (1) shall apply to any property acquired by way of gift or under a will or any other instrument or under a decree or order of a civil court or under an award where the terms of the gift, will or other instrument or the decree, order or award prescribe a restricted estate in such property."

The life estate is a property that is bequeathed through a will making it fall under the exception of subsection (2) of Section 14 of the act.

What is the position of Life Estate under Muslim law?
The answer to this question can be given through the wordings of a case law which states that:
"If a life estate is created, at the most it can be said that a right of enjoyment or right of usufruct is given to the donees, and ownership is retained by the owner himself. Such a gift cannot be enlarged, nor can it be contended that the gift is on the corpus with a condition I am supported to take this view by the decision reported in 1977-I-M. LJ 291 (Mrs. Hazara Bai v. Mohamed Adam Sait) where a learned Judge of this Court has held thus:
If, under Mahomedan law, life-estate cannot be created by gift, then in this case it must be held that the plaintiff got nothing under the document. if the document in terms creates only a life estate, there is no warrant to construe the same as one creating an absolute estate with a condition against alienation, on the theory that life estates by way of gift were unknown to Mahomedan Law.

If such theory holds good, under a document creating a life estate the donee would get nothing and not an absolute estate. It should be taken to be settled law that if in a Mahomedan gift, life-estate is created it would take effect out of the usufruct. Therefore, in the present case the plaintiff having been granted only a life estate it takes effect out of the usufruct."[4].

Hence, creating of 'life estate' is not permissible under Sunni law; the bequest of a life estate in Favor of a person would operate as if it is an absolute grant.
Under Shia law, however, the bequest of a life estate in Favor of one and a vested remainder to another after his death is valid.

Conclusion:
Despite the similarities, there are distinct differences between the English and Indian approaches to life estates. One notable difference lies in the cultural and social context within which these legal principles operate. While English law has developed over centuries in a predominantly individualistic society, Indian law often navigates a more communal and familial landscape.

Additionally, the procedural aspects of creating and terminating life estates may differ, as Indian law accommodates the diverse religious and cultural practices of its citizens. The significance of ancestral property, joint family systems, and the concept of coparcenary add layers of complexity to the application of life estate principles in an Indian context.

Examining the life estate idea in light of Indian legal principles exposes an intriguing interplay between English legal foundations and India's distinct socio-cultural setting. While the shadows of the English life estate are definitely evident in the Indian legal system, it is critical to recognise the subtle adjustments and variances that have arisen.

The cultural ethos, family dynamics, and different religious practices in India all contribute to a unique application of life estate concepts. The shadows produced by English law are not mere duplicates, but rather reflections filtered through the prism of India's complex legal fabric.

As Indian jurisprudence grows, the adoption of life estate concepts remains a dynamic process that requires a continuing conversation between tradition and adaptation. This comparative study offers light on the intricacies and subtleties involved in the assimilation of legal concepts across different legal systems, ultimately leading to a better understanding of the life estate and its shadows in the Indian legal framework.

End-Notes:
  1. Gumpha (Smt) And Others v. Jaibai (1994) 2 SCC 511
  2. Jatindra Mohan Tagore v. Ganendra Mohan Tagore (1872) 9 Beng LR 377
  3. Chaudhary v. Ajudhia AIR 2003 NOC 126 (HP)
  4. 1976 SCC ONLINE MAD 228

Written By: Aditya Gupta

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