SupremeToday Landscape Ad
Back
Next
Judicial Analysis Court Copy Headnote Facts Arguments Court observation
Listen Audio Icon Pause Audio Icon
judgment-img

1981 Supreme(Mad) 41

Madras High Court
SETHURAMAN
Duraisami Reddiar - Appellant
Versus
Saroja Ammal - Respondent
Decided On : 02/03/1981

A settlement deed that is irrevocable, confers an immediate right to the property, and contains terms indicating an immediate transfer of interest is valid and cannot be revoked by a subsequent revocation deed.

Headnote:

SETTLEMENT DEED - REVOCATION - VALIDITY - Whether Ex. A.1 is a settlement deed or a will?

Fact of the Case:

Ramaswami Reddiar executed a settlement deed (Ex. A.1) in 1966, transferring properties to his wife, her brother, and her sister. He later executed a revocation deed (Ex. B.5) in 1968, claiming that Ex. A.1 was a will and could be revoked. The plaintiffs, claiming under the settlement deed, filed a suit for declaration and injunction to restrain the defendants from taking possession of the properties.

Finding of the Court:

The court held that Ex. A.1 was a settlement deed and not a will, and that the subsequent revocation deed (Ex. B.5) was ineffective and void. The court found that the document was executed on a stamp paper, was registered, and contained terms indicating an immediate transfer of interest in favor of the settlees, subject to a life estate reserved by the settlor.

Issues: 1. Whether Ex. A.1 is a settlement deed or a will? 2. Whether the subsequent revocation deed (Ex. B.5) is valid and effective?

Ratio Decidendi: The court applied the following principles in reaching its decision: 1. The primary test of whether a document is a will or a settlement is whether it is revocable. If it is irrevocable, it cannot be a will. 2. Another test is whether a document confers an immediate right to the property. 3. The reservation of a life estate by the settlor does not render the instrument the less a settlement. 4. The fact that a document is inscribed on stamp paper, registered, and contains terms indicating an immediate transfer of interest are pointers to show that the settlement was intended as a present one.

Final Decision: The court allowed the appeal, restored the decree of the trial court, and held that the plaintiffs were entitled to the reliefs sought in the suit.

Judgement

JUDGEMENT :- This second appeal has been filed by the plaintiffs in O.S. No. 1906 of 1973 in the court of the District Munsif, Vridhachalam. The suit properties belonged to one Ramaswami Reddiar. His first wife died about thirty years before suit leaving her only daughter, Andal, who is married to one Narayanaswami Reddiar. The said Ramaswami Reddiar married one Jagadambal about 27 years prior to the suit, Jagadambal died on 6th April,1968. She had two children but both of them predeceased her. Ramaswami Reddiar himself died on 20th September, 1973, Ramaswami Reddiar executed a settlement deed on 27th January, 1966 marked as Ex. A.1 under which there is a description of the properties in three schedules. It would be necessary to go into the terms of the settlement deed later. But, according to the plaintiffs, the said Ramaswami Reddiar had handed over possession of the properties settled thereunder to Jagadambal's brother and sister. On 13th August, 1968, there is what purports to be a revocation deed of the said settlement by the same Ramaswami Reddiar. The plaintiff claimed that the said revocation deed was ineffective and void, as there was no power to revoke the earlier settlement. Ex. A,1. The plaintiff's case was that the said Ramaswami Reddiar, married the first defendant in March, 1973, when he was more than 69 years of age and had brought about Ex. B.5 under the undue influence of the first defendant. The plaintiffs, therefore, filed the suit for declaration and for restraining defendants 1 and 2 from taking possession of the properties. The second defendant had in his favour what purports to be a sale deed dated 7th August, 1972, marked as Ex. B.4.

2. The first defendant's case was that the document Ex. A.1 was only a will and that it could be revoked at any time and that the subsequent transactions are all valid. The second defendant adopted the same stand.

3. The Trial Court went into the question of the nature of the document and came to the conclusion that Ex. A.1, the original of which has been marked as Ex. B.1, was a settlement and not a will. He, therefore, held that the plaintiffs were entitled to the reliefs asked for.

4. The first defendant filed an appeal and the learned Subordinate Judge of Chidambaram held that Ex. B.1 was a will and not a settlement, that it was revoked by Ex. B5 and that, therefore, the plaintiffs were not entitled to the reliefs asked for. The plaintiffs, who have lost in the court below, have come forward with the present second appeal. The said second appeal has been admitted on the following substantial question of law-

''Whether Ex. A.1 is a settlement deed or a will?" Ex. B.1 the original, of which registration copy is Ex. A.1 is on a stamp paper, the value of the document has been given as Rs. 10,000. It sets out the relationship of the three persons, one, the wife, the other her brother and the third her sister and also mentions that his only daughter has already married. It is stated that he had desired that the properties should be given to the three individuals, on account of his love and affection to them, and that he had executed the document accordingly. The properties were to be taken by the three individuals after his lifetime. The properties are described in the Schedules A, B and C and given to the respective persons. The relevant part of the document runs as follows(Translation of Tamil Portion)

"After my lifetime they should enjoy their respective share of the properties with full rights of alienation such as sale etc. Till my lifetime you should not in any manner alienate the undermentioned properties. Excepting to collect and enjoy the income from the undermentioned properties, I too do not have any right to alienate the same. I do not cancel this settlement under any circumstances. If it is done, it is not valid. To this effect I am executing this settlement deed. Patta should be in my name. After my lifetime I agree to the respective parties getting transfe















Click Here to Read the rest of this document
1
2
3
4
5
6
7
8
9
10
11
SupremeToday Portrait Ad
supreme today icon
logo-black

An indispensable Tool for Legal Professionals, Endorsed by Various High Court and Judicial Officers

Please visit our Training & Support
Center or Contact Us for assistance

qr

Scan Me!

India’s Legal research and Law Firm App, Download now!

For Daily Legal Updates, Join us on :

whatsapp-icon Back to top