Doctrine of Escheat

Doctrine of Escheat Latest News

The Supreme Court recently held that a State Government cannot invoke the doctrine of escheat under Section 29 of the Hindu Succession Act once a Hindu male has executed a Will, which has been declared to be valid and has been granted probate by a Court.

About Doctrine of Escheat

• It is a significant legal concept that ensures no property is left without ownership, reverting it to the state if the original owner dies without legal heirs or fails to make a will. 
• This legal process addresses the handling of unclaimed assets, protecting societal interests and maintaining order within the legal framework.
• The doctrine addresses two primary situations: 
  • when a person dies intestate (without a will) and without heirs, and 
  • when property remains unclaimed or abandoned for a specific period.
• The underlying principle of escheat is that property must always have an identifiable owner, and in the absence of heirs, the government assumes ownership. 
• In modern legal systems, escheat serves as a way to maintain orderly succession and prevent assets from being wasted or misused.

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Historical Origins of Escheat

• Escheat originates from the Old French word “eschete,” meaning “to fall to”.
• The concept of escheat is rooted in the feudal system of medieval Europe, where land was held by tenants under a lord.
• If the tenant died without an heir or was convicted of certain crimes like treason, the land would escheat, or revert, to the lord. 
• This system allowed for continuous control of land, ensuring that property remained within the hierarchy of the feudal structure. 
• Over time, this evolved to include the monarch or the state as the ultimate recipient of property without heirs.

Escheat in Modern Legal Systems

• In modern legal systems, escheat ensures that unclaimed or ownerless property does not remain in limbo but is transferred to the state. 
• The state assumes ownership of such property, either permanently or temporarily, until rightful claimants can be found. 
• Escheat laws vary across jurisdictions, with some countries having well-defined processes for handling unclaimed assets.
• In India, escheat is regulated primarily through Section 29 of the Hindu Succession Act, 1956, and Article 296 of the Constitution. 
  • These provisions outline the circumstances under which property escheats to the state, safeguarding against unclaimed or abandoned property.
  • However, the Supreme Court made it clear that the doctrine of escheat under Section 29 of the Hindu Succession Act, 1956, is a remedy of last resort; it comes into play only when a person dies intestate and without any legal heirs.
  • Where a valid will is executed and duly probated, the property must devolve strictly in line with the testator’s intent, leaving no room for the State to assert rights over the estate.

Source: LIVELAW