An accepted gift deed cannot be canceled without valid justification, marking the importance of intent and acceptance in property transfers.

J U D G M E N T

The suit challenging a Cancellation Deed, was dismissed by the trial court. The plaintiffs are in appeal.

2. Ext.A10 is the Cancellation Deed executed by the first defendant purporting to cancel Ext.A1 Settlement Deed which was executed in favour of his son Samson, who is the husband of the first plaintiff and father of the second plaintiff. Ext.A1 Settlement Deed was executed by the first defendant in favour of Samson on 23.01.2006. Samson died on 15.07.2007. Thereafter the first defendant-the father, executed Ext.A10 Cancellation Deed dated 05.09.2007 purporting to cancel Ext.A1. It is thereupon that the suit was filed challenging the Cancellation Deed and also seeking injunction against alienation of the property.

3. The defendants contended that Ext.A1 was executed only to enable Samson to avail a loan. There was a specific understanding to re-transfer the property if the loan could not be availed. Thereafter, the son died whereupon the Ext.A10 cancellation deed was executed.

4. The trial court held that Ext.A1 Settlement Deed did not take effect and that the cancellation of Ext.A10, is valid. Accordingly the suit was dismissed.

5. I have heard learned counsel on either side.

6. The points that arises for consideration in this appeal are :-

(i) Is the finding of the trial court that Ext.A1 Settlement Deed had not taken effect, supported by the evidence on record ?

(ii) Has not there been an outright transfer of title in the property under Ext.A1 Settlement Deed?

7. Ext.A1 describes the consideration for the document as, “natural love and affection”. It is not in dispute that Ext.A1 is a Gift Deed. A gift once accepted, cannot be cancelled. Ext.A2 is the tax receipt dated 29.03.2006 evidencing payment of tax by the donee- Samson on effecting mutation in his name pursuant to Ext.A1. The acceptance of gift by the donee is proved by the same. Law is too well settled that to prove the acceptance of a gift which is not onerous, very little evidence is sufficient since a man would only be too eager and willing to promote his own interests. The gift having been accepted by the donee, the subsequent cancellation Ext.A10 cannot have any legal consequence and does not affect the title conveyed under Ext.A1. The finding of the trial court that Ext.A1 has not taken effect, cannot be sustained. Point (i) is answered accordingly.

8. In the written statement the contention of the defendant is that, Ext.A1 was executed only to enable late Samson to avail a loan and that the property was liable to be re-transferred. The said contention itself proves that there had been a transfer of right, title and interest over the property in favour of late Samson under Ext.A1. So also if the understanding was to re- transfer the property subsequently and the same was not honoured, the remedy of the defendants did not lie in executing a deed purporting to cancel Ext.A1 settlement deed. There is no plea that it is a sham document. That apart, a reading of Ext.A10 Cancellation Deed shows that the reason stated therein for the cancellation is, the alleged obstruction by the first plaintiff from the defendant enjoying the property. The reasoning given in Ext.A10 varies from the written statement. The reason stated for cancellation and also the contention projected in the written statement, both by itself demonstrate that there had been transfer of title under Ext.A1, of course subject to the life interest of the defendant. Point no.(ii) is answered accordingly.

9. Though the relief in the plaint has been couched seeking for setting aside the cancellation deed Ext.A10, the plaintiffs have paid court fee for the relief of declaration under Section 25 of the Kerala Court Fees and Suit Valuation Act on the market value of the property. The plaintiffs are entitled for a declaration that Ext.A10 cancellation deed will not affect their title over the plaint schedule property under Ext.A1 Settlement Deed.

10. As regards the relief of injunction, it is not in