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IN THE HIGH COURT FOR THE STATE OF TELANGANA AT HYDERABAD
G.RADHA RANI
Vankayala Gandhi died – Appellant
Versus
Pulakala Veeraiah – Respondent
ORDER:
G. RADHA RANI, J.
This Civil Revision Petition is filed by the petitioners - plaintiffs aggrieved by the order dated 21.08.2023 passed in I.A.No.358 of 2018 in O.S.No.187 of 2014 by the learned V Additional District Judge, Khammam for dismissing the petition filed under Order I Rule 10 read with Section 151 of CPC to implead the proposed party as defendant No.2 in the suit.
2. The plaintiff No.1 initially filed a suit against defendant No.1 for recovery of money of Rs.27,55,200/- with interest @ 24 % per annum basing on a promissory note. He also filed I.A.No.1811 of 2014 seeking attachment of the property in the name of the defendant. The said petition was ordered conditionally on 14.03.2018. But prior to passing of the order for attachment itself, the defendant transferred the said property by executing a gift deed in favor of his brother - the proposed defendant No.2. The contention of the petitioner - plaintiff was that the defendant was indebted to several persons and he was having only the schedule property and by defrauding the creditors, he gifted the property in the name of his brother. As such, the brother of the defendant was also a proper and necessary party to th
Gift donees are liable for donor's debts only up to the value of the property received, ensuring liability does not escape during fraudulent transfers.
A transfer of property made with intent to defeat creditors is voidable, and a donee of the whole property is liable for the donor's debts at the time of the gift.
A universal donee is liable for the debts due or liabilities by the donor at the time of the gift to the extent of the properties and not necessary to file suit.
The discretion of the court to make subsequent transferee a party and the subservient nature of transfer pendente lite to the rights eventually determined by the court in pending litigation.
Universal donees are personally liable for the debts of the donor as per Section 128 of the Transfer of Property Act, overriding any claim of absolute ownership under the Hindu Succession Act in cert....
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