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Doctrine of Escheat
September 21 , 2025
14 hrs 0 min
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- The doctrine of escheat is a legal mechanism where ownership of property reverts to the state when a person dies intestate (without a will) and without legal heirs.
- It ensures that no property remains without ownership, maintaining legal order and preventing misuse or abandonment of assets.
- The term “escheat” comes from the Old French word “eschete”, meaning “to fall to”, and has roots in the feudal landholding system.
- In India, escheat is regulated through Article 296 of the Constitution of India and Section 29 of the Hindu Succession Act, 1956.
- Article 296 states that property without an heir or rightful owner shall vest with the Union or State government, as applicable.
- Section 29 of the Hindu Succession Act provides that if a Hindu dies intestate and without legal heirs, the property escheats to the government.
- The Supreme Court recently clarified that the doctrine of escheat cannot be invoked if a valid will has been executed and granted probate by a competent court.
- The Court emphasized that the state's right under Section 29 arises only as a last resort when all legal heirs are absent, and no valid testament exists.
- The doctrine serves to protect public interest by ensuring that property is not left in legal limbo or subject to unlawful possession.
- Escheat also applies to unclaimed or abandoned properties after due legal process, especially in banking and financial sectors under separate regulatory frameworks.
- In India, unclaimed financial assets are also regulated by entities like the Insurance Regulatory and Development Authority of India (IRDAI) and RBI.
- The principle of escheat upholds the rule of law by ensuring every property has a lawful owner and is not left neglected or exploited.
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