Supreme Court Of India
ASOKAN - Appellant
Versus
LAKSHMIKUTTY - Respondent
Appeal (Civil) 5942 Of 2007
Decided On : 12/14/2007
.
Gift - Acceptance of Possession - Transfer of Property Act - Sections 122, 123, 91, 92 - The court discussed the essential elements of a gift, the requirement of acceptance, and the presumption of acceptance based on the circumstances of the transaction. It highlighted the importance of possession in determining acceptance and the burden of proof on the donor to show non-acceptance. The court emphasized that once a gift is complete, it cannot be rescinded for any reason based on the subsequent conduct of the donee.
Fact of the Case:
The case involved a dispute over the validity of deeds of gift and the acceptance of possession by the donee. The defendants cancelled the gifts, alleging non-fulfillment of conditions by the appellant.
Finding of the Court:
The Trial Court decreed the suit, holding that the requirements of the Transfer of Property Act had been fulfilled. The First Appellate Court and the High Court reversed the decision, emphasizing the lack of overt act of possession by the appellant.
Issues: The main issue was whether the appellant's acceptance of the gifts was valid, and if the subsequent conduct of the donee could be a ground for rescission of the gifts.
Ratio Decidendi: The court emphasized the importance of acceptance in a gift transaction, the presumption of acceptance based on possession, and the burden of proof on the donor to show non-acceptance. It also highlighted that once a gift is complete, it cannot be rescinded for any reason based on the subsequent conduct of the donee.
Final Decision: The court set aside the judgments of the High Court and the First Appellate Court, and restored the decision of the Trial Court, allowing the appeal with no costs.
Key Points: - The judgment discusses acceptance as essential for a valid gift and presumes acceptance based on possession. (!) (!) - It analyzes that possession delivery and recitals in the deed may constitute acceptance, with burden on donor to prove non-acceptance; various modes of proving acceptance are considered. (!) (!) (!) - It holds that once a gift is complete, it cannot be rescinded for subsequent conduct of the donee; the onus and exceptions are discussed in relation to Sections 122, 123, 91, 92. (!) (!) (!)
S. B. SINHA, J.
( 1 ) LEAVE granted.
( 2 ) WHETHER an averment made in the deed of gift in regard to handing over of possession is sufficient proof of acceptance thereof by the donee is the question involved in this appeal which arises out of a judgment and order dated 9. 07. 2002 passed by the High Court of Kerala at Ernakulam in S. A. No. 606 of 1993.
( 3 ) DEFENDANT Nos. 1 and 2 are the parents of the appellant herein. A deed of gift was executed by Defendant No. 2 - Respondent No. 1 (mother of the appellant) herein in favour of the appellant on or about 4. 01. 1984. He was said to have been put in possession of the properties covered by the deed of gift. It was a registered document. Defendant No. 1 (father of the appellant) (since deceased) also executed a registered deed of gift dated 17. 03. 1984 in his favour which was marked as Exhibit A-2 before the learned Trial Judge; relevant averments wherein were:
"the said 28 cents was divided into two equal portions. On the southern extreme side of the southern 14 cents after the said division there existed a kudikidappu (hut) of one Konnothu george. Three cents and the said hut was demarcated and given to the said George. Lakshmikutty, your mother, purchased the rights of George over the said three cents and the hut thereon vide registered document No. 2214 of 1980. The said property was later gifted by her to you vide Document No. 78 of 1984. The 11 cents of land, remaining after demarcating the abovesaid three cents from the 14 cents, namely the southern one half portion of the 28 cents that originally belonged to me, is still in my possession and enjoyment with all rights. Out of my love and affection for you and in view of the fact that you are my son and successor the said property having a value of Rs. 5,500/- is gifted to you for leading a good family life. I am hereby relinquishing all my rights over the property. The possession of the property is handed over to you and you have accepted the same. "
( 4 ) DEFENDANTS, however, on the premise that the said gift was an onerous one and the appellant did not fulfil the conditions therefor, viz. , failure to contribute a sum of Rs. 1,00,000/- at the time of marriage of his sister, cancelled the said deeds of gift by two documents executed on 15. 06. 1985.
( 5 ) APPELLANT filed a suit inter alia for a declaration that he was the absolute owner of the suit properties. Prayer for setting aside the said two deeds of cancellation was also made therein.
( 6 ) CONTENTIONS of the defendants in their written statements were that:
(i) Appellant had not been rendering any financial help to the family although he was employed in Sultanate of Oman; (ii) Appellant had not accepted the said gifts.
( 7 ) DEFENDANTS in their evidence stated that the appellant had promised to pay Rs. 1,00,000/- to them but after returning to Oman, but he changed his mind and was not prepared to send the said sum.
( 8 ) THE learned Trial Judge decreed the said suit opining that the ingredients of Sections 122 and 123 of the Transfer of Property Act had been fulfilled and, thus, the same could not have been rescinded "by the mere fact that the donors' feeling towards the donee underwent a change".
( 9 ) BEFORE the learned Trial Judge, an apprehension was expressed that in the event a decree is passed, the appellant may evict his parents which was refused to be gone into on the ground that such a question might arise only in the future. The First Appellate Court, however, reversed the said findings opining that there had been no overt act of possession on the part of the appellant as he had not paid any tax nor he got his name mutated in the revenue records. It was noticed that even the deeds of gift were produced by the defendants.
( 10 ) THE High Court by reason of the impugned judgment affirmed the said view.
( 11 ) MR. M. P. Vinod, learned counsel appearing on behalf of the appellant, submitted that the first Appellate Court as also the High Court c
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