The Bombay High Court has affirmed that guardians appointed under parens patriae jurisdiction may sell a ward’s immovable property when strictly necessary for her welfare, provided the transaction is transparent, independently valued, and proceeds are safeguarded for the ward’s exclusive benefit. This ruling clarifies the limits and responsibilities of guardians managing the assets of incapacitated elderly persons.
Background & Facts
The Dispute
The petitioner, Viren Mirani, filed a writ petition seeking appointment as guardian of his 86-year-old mother, Smt. Divyaprabha C. Mirani, who suffers from Major Neurocognitive Disorder, diabetes, Parkinsonism, and dementia. The Court, exercising its parens patriae jurisdiction, appointed Viren Mirani and his two brothers (Respondents Nos. 3 and 4) as joint legal guardians of both the person and properties of Smt. Divyaprabha.
Key Facts
- Smt. Divyaprabha C. Mirani is 86 years old and diagnosed with irreversible cognitive decline as per J.J. Group of Hospitals Report dated 31.01.2025
- She is incapable of managing her daily affairs or financial decisions
- Her immovable properties, as listed in the Court’s Order dated 03.02.2025, include:
- 31.25% share in Sagar Mahal, Mumbai (997 sq. mtrs.)
- House in Jodiya, Gujarat
- 5-acre land at Belagali Kheri, Karnataka (the subject of this application)
- 10.54-acre land at Nagaral, Karnataka
- Villa allotment at Lavale, Pune
- Guardians were permitted to operate her bank accounts only for her upkeep, with no sale of immovable property allowed without Court permission
Procedural History
- 24.01.2025: Court directed J.J. Hospital to submit medical report on Smt. Divyaprabha’s condition
- 31.01.2025: J.J. Hospital submitted report confirming Major Neurocognitive Disorder
- 03.02.2025: Court appointed petitioner and Respondents 3 & 4 as joint guardians of person and properties; prohibited sale of immovable property without leave
- 25.09.2025: Court appointed valuer Vasant L. Bhosale to assess Nagaral land; appointed Sagar Ingley to assess living conditions at Sagar Mahal
- 13.11.2025: Court permitted sale of Nagaral land (Karnataka) for Rs. 2.63 Crores and relinquishment of Pune villa for Rs. 1.50 Crores; directed deposit of proceeds in a joint account for Smt. Divyaprabha’s benefit
- 06.05.2026: Petitioner applied for sale of Belagali property (5 acres) for Rs. 92,00,000; submitted valuation report (FMV: Rs. 85,00,000) and medical certificate confirming Smt. Divyaprabha is alive
- 07.05.2026: Court heard application and sought bank statements and medical proof
Relief Sought
The petitioner seeks permission to sell the 5-acre Belagali property for Rs. 92,00,000, with proceeds deposited in the existing joint bank account (No. 8052435634, Kotak Mahindra Bank) exclusively for Smt. Divyaprabha’s upkeep, welfare, and benefit.
The Legal Issue
The central question was whether guardians appointed under the Court’s parens patriae jurisdiction may sell a ward’s immovable property for her welfare, and if so, what safeguards must be observed to prevent misuse of fiduciary power.
Arguments Presented
For the Petitioner
The petitioner’s counsel argued that the sale of the Belagali property is necessary to generate liquid assets for Smt. Divyaprabha’s long-term medical care, including nursing, medication, and institutional support. He submitted an independent valuation report showing the offer price of Rs. 92,00,000 exceeds the fair market value of Rs. 85,00,000. He produced bank statements proving prior sale proceeds from Nagaral and Pune properties were deposited in the designated account and used solely for the ward’s benefit. He also submitted a medical certificate dated 06.05.2026 confirming Smt. Divyaprabha is alive and stable.
For the Respondent
Respondents 3 and 4, through their counsel, supported the application. The State did not oppose the relief sought. No adverse submissions were made by any party.
The Court's Analysis
The Court emphasized that guardians appointed under parens patriae jurisdiction hold a fiduciary position of the highest order. Their authority to dispose of a ward’s property is not absolute but must be exercised with scrupulous regard for the ward’s best interests.
"The Court must ensure that any transaction involving the ward’s property is not merely commercially advantageous but demonstrably necessary for her welfare, and that proceeds are irrevocably ring-fenced for her exclusive benefit."
The Court noted that the proposed sale price of Rs. 92,00,000 is above the independent valuation of Rs. 85,00,000, indicating a fair and beneficial transaction. The Court further observed that the petitioner had complied with all prior directives: sale proceeds from two other properties were deposited in the designated account, and the account’s usage was transparent. The medical certificate confirmed the ward’s continued existence and need for sustained care.
The Court held that the proposed sale is not speculative or speculative in nature but a prudent step to convert an illiquid asset into funds that can be reliably deployed for medical and custodial needs. The Court also reaffirmed that the fiduciary duty of guardians extends beyond mere compliance with procedural orders - it demands proactive stewardship.
The Verdict
The Interim Application is allowed. The petitioner and Respondents 3 and 4 are permitted to sell the 5-acre Belagali property for Rs. 92,00,000. The entire sale proceeds must be deposited within seven days into the existing joint bank account (No. 8052435634, Kotak Mahindra Bank) in the names of the petitioner and Respondents 3 and 4, and shall be used exclusively for the upkeep, medical care, and welfare of Smt. Divyaprabha C. Mirani. No costs are imposed.
What This Means For Similar Cases
Fiduciary Duty Demands Transparency
- Guardians must maintain separate, auditable bank accounts for ward’s property proceeds
- All transactions must be documented and disclosed to the Court upon request
- Failure to segregate funds may result in revocation of guardianship
Valuation Is Non-Negotiable
- Independent valuation reports must accompany any proposed sale
- Sale price must be at or above fair market value, with evidence of market comparison
- Courts will not approve sales below valuation without compelling justification
Medical Confirmation Is Mandatory
- Guardians must submit current, signed medical certificates confirming the ward’s survival
- Absence of such proof will halt any property transaction
- Medical status directly impacts the urgency and necessity of asset liquidation
