Doctrine of Escheat PDF

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Doctrine of Escheat...

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Doctrine of Escheat As per Byrne Dictionary, it is provided that “where person possessed of personal property, intestate and leaving no next-of-kin, the Crown becomes entitled to all such property. Black’s Law Dictionary defines escheat as “the preferable right of the state to an estate left vacant, and without there being any one in existence able to make a claim thereto.” Although dense, the definition , once parsed, describes a relatively simple concept: under the laws of nearly every state, a business that is holding property on behalf of a thirdparty (called the “owner”) is obligated to report and turn over the unclaimed property to the state, after passage of a prescribed “dormancy” period. Escheat in Hindu Law: The law of escheat of lands for want of heirs was witnessed in old Hindu society. It was called then as ‘Gayari’. In Biswanath Khan and others vs. Prafulla Kumar Khan, Justice A.M. Bhattacharjee observed that: “not that such a doctrine (escheat) was unknown in India for our ancient law-giver Manu, for example, declared more than 2000 years ago thus in Manusawhita (Chapter IX, Verse 189) Aharajyam Brahmanadravyam Rajna Nityamiti Sthiti, Itareshantu Varnanam Sarbabhave Harenripa. This, while negativing the king’s right to Brahminical property even of failure of all heirs, affirmed the king's title to all the properties belonging to person of other classes dying leaving without any heir”. Section 2(iv) of the Telangana Escheats and Bona Vacantia Act, 1974, defines the term “escheat” to mean any property the owner of which dies intestate and without leaving legal heirs. That means, for constituting escheat two conditions must prevail, namely, A. The property owner must die intestate and B. He must not have any legal heirs. In such cases, the State becomes the owner of such property. Article 296, Property accruing by escheat or lapse or as bona vacantia: Subject as hereinafter provided any property in the territory of India which, would have accrued to His Majesty or, as the case may be, to the Ruler of an Indian State by escheat or lapse, or as bona vacantia for want of a rightful owner, shall, if itis property situate in a State, vest in such State, and shall, in any other case, vest in the Union. Provided that any property which at the date when it would have so accrued to his Majesty or the Ruler of an Indian State was in the possession or under the control of the Government of India or the Government of a State shall, according to as the purposes for which it was then used or held were purposes of the Union or a State, vest in the Union or in that State.

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