1996 Supreme(SC) 1428
1996(7) Supreme 654
SUPREME COURT OF INDIA
K. Ramaswamy and Faizan Uddin & G.B. Pattanaik, JJ.
Naramadaben Maganlal Thakker -Appellant
versus
Pranjivandas Maganlal Thakker & Ors. -Respondents
Civil Appeal No 3550 of 1979
Decided on 10-9-1996
Counsel for the Parties :
For the Appellant : R.P. Bhatt, Sr. Advocate, K.V. Sreekumar, Ms. Reema Bhandari, Ms. Alka Aggarwal and M.N. Shroff, Advocates.
For the Respondents : S.K. Dholakia, Sr. Advocate and H.A. Raichura, Advocate.
IMPORTANT POINT
Execution of a registered gift deed, acceptance of the gift and delivery of the property together make the gift complete.
Headnote:Transfer of Property Act-Sections 122 & 123-Gift-Execution of registered gift deed, acceptance of the gift and delivery of the property together make the gift complete-Donor retained the possession-Gift was to become operative after death of donor as per recital in the gift deed-It was a conditional gift-Donor then cancelled it and executed last will in favour of appellant-Appellant would get the right to the property. (Para 4)
Legal Category Hierarchy
-
property law
-
transfer of property
-
gift
-
conditional gift
(Para 3, 4)
-
completion of gift
(Para 3, 4)
-
cancellation of gift
(Para 3, 4)
-
will
-
testamentary disposition
(Para 1, 4)
-
property rights
-
title and ownership
(Para 1, 4)
-
possession
(Para 2, 3, 4)
-
civil procedure
-
property disputes
-
declaration of title
(Para 1, 5)
-
injunction
(Para 1)
Table of Contents
1. What are the essential requirements for a complete gift under Section 123 of the Transfer of Property Act?
A registered gift deed, acceptance by or on behalf of the donee, and delivery of the property together make the gift complete. Without all three, the gift remains incomplete and the donor retains title. (Para
3
,
4
)
2. Can a conditional gift deed be cancelled if the donee fails to accept the gift and fulfill the conditions?
Yes. Where the gift is conditional and the donee has not accepted it nor fulfilled the conditions, the donor retains the right to cancel the gift deed, rendering it inoperative. (Para
2
,
3
,
4
)
3. Does a will executed by the donor operate on property after a conditional gift has been cancelled?
Yes. Since the conditional gift was duly cancelled and never completed, the donor retained absolute title and was free to dispose of the property by will. (Para
4
)
ORDER
This appeal by special leave arises from the judgment of the Division Bench of the Gujarat High Court made in FA No. 421/74 on September 13, 1979. The admitted facts are that one Motilal Gopalji was the owner of the properties bearing Revenue Survey No. 172/8 situated in Pratapnagar area of the city of Baroda. The property consists of 15 rooms of the chawl and an open land surrounding the same. The appellant is the sister of the first respondent. Motilal Gopalji had executed gift deed, Ex.111 dated May 15, 1965 in favour of the respondent. Thereafter, he had executed another deed, Ex.198 dated June 9, 1965, cancelling the said gift. He executed a will in favour of the appellant and another brother of the appellant on May 17, 1966. Motilal Gopalji died two days thereafter, i.e., May 19, 1966. Consequently, the respondent laid a suit in the Court of the Civil Judge, Senior Division in Baroda for declaration of his title to the properties and injunction restraining the appellant and her brother from collecting the rents. The trial court decreed the suit. On appeal, it was confirmed. Thus this appeal by special leave.
2. Shri R.P. Bhatt, learned senior counsel appearing for the appellant, contended that a reading of the recitals of the gift deed and the cancellation deed do clearly indicate the intention of the donor and the donee, namely, the gift was not complete. It was a conditional one. He reserved life interest in the property and had not handed over the possession of the property; nor had the donee accepted the gift, thereby, the gift was incomplete. The gift which was duly cancelled became inoperative during the life time of the donor. The donor had cancelled it within one month of the gift. Subsequently, he had executed a Will in favour of the appellant and her brother. will in favour of the appellant and her brother. Thereby, the courts below were wrong in construing that the gift became operative and by operation of gift deed dated May 15, 1965 the donor Motilal Gopalji was devoid of power to cancel the gift deed. It is contended by Shri Dholakia, learned senior counsel for the respondent, that the view taken by the High Court is correct in law. It is stated that Motilal Gopalji had delivered symbolic possession to the respondent. What he preserved was only right to collect rent for his maintenance and thereafter he had no power to cancel it. The recitals in the cancellation deed are not material. Only the recitals in the gift deed have to be considered. On their own face value they do indicate that Motilal Gopalji had divested himself totally of the right, title and interest in the property, the subject matter of the gift over. Consequently, he had no power to cancel the gift and the will executed by Motilal Gopalji was inoperative. We find no force in the contention for the respondent.
3. It is now well settled legal position that a document has to be read harmoniously as a whole giving effect to all the clauses contained in the document which manifest the intention of the persons who execute the document. The material part of the gift deed reads as under :
"The said immovable property as described above with the ground floor and with the ways to pass and with the water disposal and with all other concerned rights, titles is gifted to you and the possession whereof is handed over to you under the following conditions to be observed by you and your heirs and legal representatives as long as the Sun and the Moon shine. Therefore, now I or my heirs or legal representatives have no right on the said property. You and your heirs and legal representatives have become the exclusive owners of the same. You and your heirs and legal representatives are entitled to enjoy, to transfer or to use the said property as you like under the conditions mentioned in this deed. Except myself, there is nobody s right, title, interest or share on the said property: I have not mortgaged the same by any document. Yet however anybody comes
Click Here to Read the rest of this document