ANDHRA PRADESH HIGH COURT AT AMARAVATI
Subba Reddy Satti, J.
Chelluboyina. Nagaraju – Appellant
Versus
Molleti Ramudu Alias Vijayalakshmi – Respondent
Second Appeal No. 216 of 2020
Decided On : 13-04-2022
GIFT DEED - REVOCATION - DELIVERY OF PROPERTY - BONA FIDE PURCHASER - TRANSFER OF PROPERTY ACT, 1882 - SECTION 122, 123 - CIVIL PROCEDURE CODE, 1908 - SECTION 100 - SECOND APPEAL - SUBSTANTIAL QUESTION OF LAW - INTERFERENCE WITH CONCURRENT FINDINGS OF FACT.
Fact of the Case:
Plaintiffs filed a suit for declaration of title and recovery of possession of the plaint schedule property. The plaintiffs claimed that the property was gifted to them by their mother through a registered gift deed in 2003, reserving life interest to herself. The mother died in 2012 and the plaintiffs became the vested remainder holders. The defendant, who is the cousin of the plaintiffs, claimed that he purchased the property from the mother in 2011 through a registered sale deed. The defendant also claimed that the gift deed was revoked by the mother in 2011 through a registered revocation deed.
Finding of the Court:
The trial court and the first appellate court decreed the suit in favor of the plaintiffs, holding that the gift deed was valid and the revocation deed was not effective. The defendant filed a second appeal.
Issues: 1. Whether delivery of property is sine qua non under Sec 123 of T.P. Act for a valid gift deed? 2. Whether a registered gift deed can be revoked/ cancelled without the consent of donee? If so, such unilateral cancellation deed binds the donee? 3. Whether Ex.A-1 Gift Deed is a conditional Gift Deed and non-consideration of Ex.A-1 vitiated the Judgements of the Courts below? 4. Whether the defendant is a bonafide purchaser?
Ratio Decidendi: 1. Delivery of property is not sine qua non for a valid gift deed under Section 123 of the Transfer of Property Act, 1882. A gift deed can be effected by a registered instrument signed by or on behalf of the donor and attested by at least two witnesses, or by delivery of the movable property. 2. A registered gift deed cannot be revoked or cancelled unilaterally without the consent of the donee. Such unilateral cancellation deed does not bind the donee. 3. The gift deed in question was not a conditional gift deed. The recitals in the document indicate that it was executed out of love and affection, and there was no condition imposed by the donor. 4. The defendant was not a bona fide purchaser. He was aware of the execution of the gift deed in favor of the plaintiffs, and he did not make any inquiries about the encumbrances on the property before purchasing it.
Final Decision: The second appeal was dismissed at the admission stage, holding that there was no substantial question of law involved in the appeal.
JUDGMENT
1. The above second appeal is filed by the defendant against the judgment and decree dated 27.02.2020 in A.S.No.41 of 2019 on the file of Senior Civil Judge, Razole, confirming the judgment and decree dated 31.08.2018 in O.S.No.71 of 2013 on the file of Junior Civil Judge, Razole.
2. For the sake of convenience and brevity, the parties herein are referred to as they are arrayed in the O.S.No.71 of 2013.
3. The plaintiffs, sisters, filed suit O.S.No.71 of 2013 to declare their title and for recovery of possession etc. In the plaint, it was contended interalia that the plaint schedule property originally belonged to Chelliboina Somalamma, mother of plaintiffs; that Somalamma executed a registered gift settlement deed dated 10.09.2003 reserving life interest and vested remainder to the plaintiffs; that Somalamma died on 28.12.2012 and hence the schedule property devolved upon the plaintiffs being vested remainder holders; that during the life time of Somalamma, she allowed the defendant to cultivate plaint schedule property; that after death of Somalamma, the plaintiffs demanded the defendant to deliver the plaint schedule property and at that point of time, defendant pleaded that he purchased the schedule property from Somalamma; that defendant might have obtained the document by misrepresentation and taking advantage of innocence of Somalamma and the said document does not bind the plaintiffs; that all the efforts made by the plaintiffs to take delivery went futile; that the plaintiffs got issued a legal notice dated 22.02.2013, however defendant refused to receive the same and hence, filed the suit.
4. Defendant filed written statement and contended interalia that he is the bonafide purchaser of plaint schedule property under a registered sale deed dated 26.03.2011; that by virtue of sale deed, he came into possession of the property; that plaintiffs being cousins of defendant are aware of the sale deed; that plaintiffs obtained document dated 10.09.2003 by playing undue influence with a promise to maintain their mother till her last breath; that since the plaintiffs failed to keep up the promise, deceased Somalamma revoked the gift deed through a registered revocation deed dated 08.02.2011 and eventually prayed the Court to dismissed the suit.
5. During the trial, 1st plaintiff examined herself as P.W.1 and got examined P.Ws.2 and 3. Exs.A-1 to A-4 were marked. On behalf of defendant, defendant examined himself as D.W.1, got examined D.W.2 and Exs.B-1 & B-2 were marked.
6. Trial Court by judgment and decree dated 31.08.2018 decreed the suit with costs and declared the title of the plaintiffs and directed the defendant to deliver vacant possession of property within three months, failing which the plaintiffs are also granted liberty to get the property delivered through process of Court.
7. Aggrieved by the said judgment and decree, appellant/defendant filed A.S.No.41 of 2019. First Appellate Court being final factfinding Court vide judgment dated 27.02.2020, dismissed the appeal confirming the judgment and decree of the trial Court. Aggrieved by the said judgment and decree, the present second appeal is filed.
8. Heard Sri Tata Singaiah Goud, learned counsel for appellant.
9. Learned counsel for the appellant would contend that the registered gift settlement deed dated 10.09.2003 was revoked by the executant by revocation deed dated 10.02.2011 and hence, the plaintiffs cannot maintain the suit for declaration. He would further contend that the registered gift settlement deed dated 10.09.2003 is a conditional gift and since the respondents/ plaintiffs failed to comply with the condition, the deceased Somalamma revoked the gift by revocation deed dated 10.02.2011 and the same was registered vide document No.351 of 2011. He would also contend that the appellant/ defendant is a bonafide purchaser of the property and hence, the suit filed by the plaintiffs is liable to be dismissed. It is further contended that delivery of propert
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A registered gift deed cannot be revoked or cancelled unilaterally without the consent of the donee. Such unilateral cancellation deed does not bind the donee.
Unilateral cancellation of a registered gift deed is invalid without specific grounds for revocation under law, reaffirming 'possession follows title'.
The revocation of a settlement deed must be justified under the legal provisions, and the court will consider evidence and legal principles to determine the validity of such revocation.
The validity of a registered gift deed does not require consideration, as long as possession is delivered, confirming property rights to the donee.
A gift deed executed by a party without valid title is void; ownership must be established through a registered document as per the Transfer of Property Act.
The main legal point established in the judgment is that a valid gift deed passes a title in favor of the donees, and subsequent deeds or Wills may be invalid if not proven.
The court upheld the validity of the registered gift settlement deed dated 27.03.1984 and declared the cancellation deed executed on 24.07.1995 as invalid and ineffective. The court affirmed the plai....
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