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1972 Supreme(Ker) 208

Judges : P.SUBRAMONIAN POTI
NARAYANI BHANUMATHI - Appellant
Versus
LELITHA BHAI - Respondent
Case No : S. A. No. 635 of 1970
Decided On : 10/30/1972
Advocates Appeared :
P. C. Chacko; P. Krishnamoorthy; For Appellants T. M. Cherian; Alexander Skaria; For Respondent

The central legal point established in the judgment is that the acceptance of a gift deed is a question of fact to be considered in the background of the circumstances of each case, and in cases where the donee was aware of the gift deed and it was executed to satisfy the donee, it can be assumed that the gift would have been accepted.

Headnote:

Acceptance of Gift Deed - Property Settlement - 1963 Settlement Deed - 1964 Settlement Deed - Ext. P-1 - Ex. D-2 - Plaintiff's Rights

Fact of the Case:

The case concerns the acceptance of a settlement deed executed in 1963 by defendants 2 and 3 in favor of the plaintiff and 4th defendant, and a subsequent settlement deed in 1964 in favor of the 1st defendant. The plaintiff and 4th defendant were purportedly living or proposing to live as husband and wife, and the 1963 settlement deed was executed on this basis.

Finding of the Court:

The court found that the plaintiff had accepted the 1963 settlement deed, and therefore declared the plaintiff's right under the deed. The court also modified the decree to clarify that the plaintiff's right for recovery would arise only on the death of the surviving donor, the 3rd defendant.

Issues: The main issue was whether the plaintiff had accepted the 1963 settlement deed, and the subsequent issue of the plaintiff's right for recovery.

Ratio Decidendi: The court emphasized that the acceptance of a gift deed is a question of fact to be considered in the background of the circumstances of each case. It noted that in cases where the execution of the gift deed was to satisfy the donee, and the evidence indicated that the donee was aware of the gift deed, it would not be wrong to assume that the gift would have been accepted by them.

Final Decision: The Second Appeal was dismissed except for the modification that there would be no decree for recovery in the suit, and the plaintiff's right for recovery would arise only on the death of the 3rd defendant. The court directed both parties to suffer costs.

Judgement Key Points

Key Points: - The acceptance of a gift deed is a question of fact to be decided based on the circumstances, and it can be assumed that the gift would have been accepted if the donee was aware of it and it was executed to satisfy the donee[3]. - The main issue was whether the plaintiff accepted the 1963 settlement deed executed by defendants 2 and 3 in her favour and that of the 4th defendant[1]. - The plaintiff’s right for recovery arises only upon the death of the surviving donor, the 3rd defendant, and no decree for recovery is to be granted before that[8].

What is the core principle regarding the acceptance of a gift deed?

What was the main issue in this case concerning the 1963 settlement deed?

What right does the plaintiff have regarding recovery under the settlement deed?


Judgment :-

1. There is only a short question for decision in this Second Appeal and that concerns whether Ex. P1 settlement deed dated 1-6-1963 executed by defendants 2 and 3 in favour of the plaintiff and 4th defendant has been accepted by the plaintiff. Defendants 2 and 3 are the parents of the 4th defendant who is said to have married the plaintiff. Apparently Ex. P-1 settlement deed refers to the plaintiff as wife of the 4th defendant though 4th defendant disputes the factum of the marriage and the validity of the marriage because, according to the 4th defendant, plaintiff had a husband living on the date of the alleged marriage. Whatever that be, it is clear that the settlement deed Ext. P-1 was executed on the basis that the plaintiff and the 4th defendant were living or proposing to live as husband and wife. It is said that the plaintiff has a child by the 4th defendant. The 4th defendant apparently left the plaintiff later in search of pastures new. Thereafter, defendants 2 and 3 are said to have been persuaded to ignore the settlement already effected and to execute a new settlement deed in favour of the 1st defendant, the daughter, and that is said to be the provocation for the suit.

2. That the settlement deed of 1964 in favour of the 1st defendant would not stand in case property had been already gifted admits of no doubt. No vitiating circumstance is pleaded in regard to Ex. P-1. But it is said that though it was executed it was not accepted by the plaintiff and the 4th defendant, so much so, that when a new settlement deed was executed, Ex. P-1 stood revoked. That is how the question of acceptance of Ex. P-1 becomes relevant.

3. Between the date of Ext. P-1 and subsequent settlement deed dated 25-7-1964, there was an interval of more than one year. When the fresh settlement deed was executed, the reason shown for its execution was that the 4th defendant did not look after defendants 2 and 3 as assured to them earlier when executing Ex. P-1, and therefore the document was being cancelled. Apart from the fact that at the earliest point of time when they could have said that there was no acceptance of the settlement if that was the truth, they did not do so what is more important is that the statement in the fresh settlement deed Ex. D-2 goes to negative a case of absence of consent. If the earlier settlement deed was executed on an assurance that defendants 2 and 3 will be looked after, that presupposes the knowledge of the gift by the donees and an understanding reached between them at the time of execution of the settlement deed which could be sufficient to support the plea of acceptance especially when there is no question of the donee getting possession of properties since there was reservation of right to enjoy the property in the donors during their life time.

4. The evidence bearing on the question of acceptance of the gift deed will have to be appreciated in the background of the circumstance relating to the execution of such a deed. There may be cases where slightest evidence of such acceptance would be sufficient, There may be still cases where the circumstances themselves eloquently speak to such acceptance. Normally, when a person gifts properties to another and it is not an onerous gift, one may expect the other to accept such a gift when once it comes to his knowledge, since normally, any person would be only too willing to promote his own interests. May be in particular cases there may be peculiar circumstances which may show that the donee would not have accepted the gift. But these are rather the exceptions than the rule. It is only normal to assume that the donee would have accepted the gift deed. One would have to look into the circumstances of the case in order to see whether acceptance could be read. Mere silence may sometimes be indicative of acceptance provided it is shown that the donee knew about the gift. Essentially, this is a question of fact to be considered on the background of circumsta



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