Section 22 explained: this guide covers what it means, who it applies to, the step-by-step process, documents required, fees, due dates and penalties in India — so you can stay compliant with confidence and avoid costly mistakes.
Section 22 protects a family from a stranger entering inherited property. Where an interest in immovable property or a business of an intestate devolves on two or more Class I heirs and one of them proposes to transfer his or her interest, the other heirs have a preferential right to acquire it.
This article follows the consolidated text consulted (a third-party print; amendments shown up to Act 34 of 2019). Later amendments should be checked separately.
Section 22 applies when, after the commencement of the Act, an interest in immovable property of an intestate, or in any business carried on by him or her (alone or with others), devolves upon two or more heirs in Class I and one proposes to transfer his or her interest. The other heirs have a preferential right to acquire it. If the price is not agreed, the court determines the consideration on application; a person who is not willing to acquire at that price pays all costs of or incident to the application. Where several heirs wish to acquire, the one offering the highest consideration is preferred.
When section 22 applies
Section 22 is headed "Preferential right to acquire property in certain cases". Sub-section (1) lays down conditions that must all be present:
| Condition | Words of the section |
|---|---|
| Time | "after the commencement of this Act" |
| The asset | "an interest in any immovable property of an intestate, or in any business carried on by him or her, whether solely or in conjunction with others" |
| Who receives it | The interest "devolves upon two or more heirs specified in class I of the Schedule" |
| The trigger | "any one of such heirs proposes to transfer his or her interest in the property or business" |
| The result | "the other heirs shall have a preferential right to acquire the interest proposed to be transferred" |
On "the commencement of this Act", the copy prints the date 17 June 1956 under the title and no separate commencement clause; no other date is given here.
Points to notice from the wording:
- Intestate property. The section speaks of the property of an intestate. Section 3(1)(g) explains when a person is deemed to die intestate.
- Immovable property or a business. Movable property that is not part of a business is not named. The business may be carried on "solely or in conjunction with others".
- Class I heirs only. The right belongs to the "other heirs" and the heirs concerned are those "specified in class I of the Schedule". See our article on section 9 and the Schedule for the list.
- A proposal to transfer. The right arises when an heir "proposes to transfer".
If the heirs disagree about a proposal to sell, our legal dispute resolution team can help you weigh the options against the printed text.
Fixing the price: section 22(2)
Sub-section (2) says: "The consideration for which any interest in the property of the deceased may be transferred under this section shall, in the absence of any agreement between the parties, be determined by the court on application being made to it in this behalf, and if any person proposing to acquire the interest is not willing to acquire it for the consideration so determined, such person shall be liable to pay all costs of or incident to the application."
In steps:
- The parties may agree the consideration themselves.
- If there is no agreement, the court determines it "on application being made to it in this behalf".
- A person proposing to acquire the interest who is not willing to acquire it at the court's figure is "liable to pay all costs of or incident to the application". (A printing point: the copy reads "incident to the application", quoted as printed.)
The section does not print a form, a time limit or a court fee. It does not say who may make the application; this article does not add that.
Competing buyers: section 22(3)
Sub-section (3): "If there are two or more heirs specified in class I of the Schedule proposing to acquire any interest under this section, that heir who offers the highest consideration for the transfer shall be preferred."
So if more than one of the other Class I heirs wishes to acquire, the one who offers the highest consideration is preferred.
The Explanation: what "court" means
"In this section, 'court' means the court within the limits of whose jurisdiction the immovable property is situate or the business is carried on, and includes any other court which the State Government may, by notification in the Official Gazette, specify in this behalf."
This article does not go into the procedure of any court.
A worked illustration
The family is invented, and the figures are made up for the arithmetic only. Gopal Menon dies intestate. A shop that he owned devolves on four Class I heirs: his widow Rekha, his sons Anand and Vikram, and his daughter Suma. Suma proposes to transfer her interest to an outsider.
- Under section 22(1), Rekha, Anand and Vikram, the "other heirs", have a preferential right to acquire Suma's interest.
- If they and Suma cannot agree on the price, section 22(2) lets the consideration be determined by the court on application. Suppose it is fixed at Rs 8 lakh.
- If Anand and Vikram both want to acquire it and Anand offers Rs 8 lakh while Vikram offers Rs 9 lakh, section 22(3) prefers Vikram, who offers the highest consideration.
- If Anand had applied to the court and then declined to acquire at the figure fixed, he would be "liable to pay all costs of or incident to the application".
Related reading and cautions
- Section 22 is about the right of preference among Class I heirs. Two posts on this site discuss co-owners under the Transfer of Property Act, 1882: section 44 on transfer by one co-owner and the family dwelling-house and sections 45 to 47 on joint purchase and sale by co-owners. They are posts on that Act, not explanations of section 22.
- The Act does not say anything on stamp duty, registration or tax on a transfer under section 22. For tax, see our income-tax guides.
- Section 23, which used to be headed "Special provision respecting dwelling-houses", is shown as omitted in the copy; it is noted in our article on sections 25 to 29.
Need help with a dispute among co-heirs?
When one heir wants to sell his or her share in a shop, plot or business, the other heirs often need to act quickly and clearly. Our legal dispute resolution team can help you understand where you stand under the printed text before you decide on the next step.
Key takeaways
- The preferential right arises where an interest in immovable property or a business of an intestate devolves on two or more Class I heirs and one proposes to transfer his or her interest.
- The other heirs have the right to acquire the interest proposed to be transferred.
- If there is no agreement, the court determines the consideration on application; a person unwilling to acquire at that figure pays all costs of or incident to the application.
- Among competing heirs, the one offering the highest consideration is preferred.
- "Court" is the court within whose limits the immovable property is situate or the business is carried on, and any other court the State Government specifies by notification.
Read next
- Sections 18-21: full blood, per capita, child in womb and simultaneous deaths
- Section 10 of the Hindu Succession Act, 1956: distribution among Class I heirs
- Sections 25-29: disqualified heirs and failure of heirs
- Intestate succession under the Hindu Succession Act: Class I and Class II heirs
Disclaimer: Based on a third-party consolidated print of the Hindu Succession Act, 1956 showing amendments up to Act 34 of 2019 and on the text of the Hindu Succession (Amendment) Act, 2005, as consulted on 2 October 2026. It explains the words of the statute only; State amendments, later amendments and the way courts apply these sections should be checked. This article is general information, not legal advice; check the official text before acting.