Apportionment of Property in India
๐น Meaning of Apportionment of Property
Apportionment means division, distribution or adjustment of property or rights when:
Property is jointly owned, or
There are multiple heirs/beneficiaries, or
The property yields income (rent/profits) and that income must be divided.
It applies both under Contract Law, Transfer of Property Act, Hindu Succession Act, and general principles of equity.
๐น Types of Apportionment
Apportionment in Respect of Property (Corpus)
The physical property itself is divided.
Example: Co-owners of a house divide it by metes and bounds.
Apportionment in Respect of Income (Rents/Profits)
Income arising out of property (like rent, crops, or royalties) is divided in proportion to ownership.
Apportionment in Succession/Inheritance
When a person dies intestate (without a will), property is apportioned among legal heirs under succession laws (Hindu Succession Act, 1956, Muslim Law, Indian Succession Act, etc.).
๐น Statutory Basis
Transfer of Property Act, 1882
Section 36: Apportionment of periodical payments (e.g., rent, interest, annuity).
Section 37: Apportionment on severance of property (e.g., if an estate yielding income is divided).
Indian Succession Act, 1925
Provides rules for apportionment of legacies and inheritances.
Hindu Succession Act, 1956
Provides rules of apportionment among Class I and Class II heirs in intestate succession.
๐น Important Case Laws
1. Raja Bejoy Singh Dudhuria v. CIT (1933, PC)
Facts: Income of estate apportioned between Raja and his stepmother (maintenance).
Principle: When property yields income, the rightful share must be apportioned before tax liability.
Rule: Apportionment applies to ensure equitable distribution before obligations attach.
2. Narayan v. Gopal, AIR 1960 SC 100
Principle: In joint family property, apportionment of shares depends on the coparcenary system. Every coparcener has a right to demand partition and get his apportioned share.
3. Mst. Dipo v. Wassan Singh, AIR 1983 SC 846
Held: A co-sharer (co-owner) is entitled to possession of every part of property until formal partition. But income/profits must be apportioned as per shares.
4. Ramaswamy v. Rangachariar, AIR 1940 Mad 113
Concerned apportionment of rent after severance of estate.
Rule: When an estate is divided, rents and profits accruing after division must be apportioned according to ownership.
5. Gurbux Singh v. Bhooralal, AIR 1964 SC 1810
Concerned apportionment in leasehold rights.
Held: When lessee assigns lease to multiple persons, rent payable to lessor must be apportioned among assignees according to their shares.
๐น Key Principles Derived
Equitable Distribution: Apportionment ensures no party gets unfair advantage.
Income vs. Corpus: Distinction between dividing property itself and dividing income arising out of it.
Succession: Property must be apportioned strictly according to succession laws.
Severance: If property is severed/divided, income from the date of severance must be apportioned among new owners.
Joint Ownership: Co-owners are entitled to proportionate possession and income until partition.
๐น Example for Easy Understanding
Suppose a father dies intestate leaving behind:
1 house rented at โน30,000 per month,
2 sons and 1 daughter (all Class I heirs).
Apportionment:
Each heir gets 1/3rd share in the house.
Rent of โน30,000 must be apportioned as โน10,000 each monthly until partition.
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Summary:
Apportionment of property in India is guided by Transfer of Property Act (Sections 36-37), Succession laws, and equitable principles. Courts ensure that property or its income is divided fairly according to legal rights. Case law like Narayan v. Gopal and Mst. Dipo v. Wassan Singh confirm that co-owners/heirs cannot be deprived of their rightful apportioned share.
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