SUPREME COURT OF INDIA
T.S. THAKUR, V. GOPALA GOWDA, C. NAGAPPAN, JJ.
Renikuntla Rajamma (d) by LRS. – Appellant
Vs.
K. Sarwanamma – Respondent
[Civil Appeal No. 4195 of 2008]
Decided On : 17-07-2014
AIR 1960 Mysore 97; AIR 1981 Punj. & Haryana 174; AIR 1922 All. 467 – Cited with approval
(b) Transfer of Property Act, 1882 – Section 123 – Transfer of immovable property by gift – Delivery of possession – Not essential prerequisite for validity of gift of immovable property – K. Balakrishnan affirmed – Naramadaben Maganlal Thakker distinguished. (Para 15, 16)
(2004) 1 SCC 581 – Affirmed
(1997) 2 SCC 255 – Distinguished
(c) Transfer of Property Act, 1882 – Sections 122 and 123 – Gift deed attested and registered as required – Donee accepting the gift – Only right to use the property during the lifetime of the donor retained – Does not affect transfer of ownership in favour of donee by the donor – Gift valid. (Para 19)
Facts of the case:
An apparent conflict between two earlier decisions rendered by this Court one in Naramadaben Maganlal Thakker v. Pranjivandas Maganlal Thakker & Ors. (1997) 2 SCC 255 and the other in K. Balakrishnan v. K. Kamalam & Ors. (2004) 1 SCC 581 has led to this reference to a larger bench for an authoritative pronouncement as to the true and correct interpretation of Sections 122 and 123 of The Transfer of Property Act, 1882.
The plaintiff-respondent filed O.S. for a declaration to the effect that revocation deed executed by the defendant-appellant purporting to revoke a gift deed earlier executed by her was null and void.
The trial Court eventually held that the deed purporting to revoke the gift in favour of the plaintiff was null and void.
The first appeal was dismissed.
The second appeal was also dismissed.
Finding of the Court:
There is no infirmity in the impugned judgment.
Result: Appeal dismissed.
Key Points: - Delivery of possession is not an essential prerequisite for the validity of a gift of immovable property (!) . - A donor may retain the right to use the gifted property and receive its rents during her lifetime without affecting the validity of the gift or transfer of ownership (!) . - A conditional gift with retained life interest does not invalidate the gift if absolute ownership is transferred to the donee and the donor’s reservation does not restrict enjoyment in a manner required by law (!) (!) . - Registration of the gift deed and acceptance by the donee are essential for a valid gift of immovable property, but delivery of possession is not required (!) . - Section 123 of the Transfer of Property Act provides that transfer of immovable property by gift must be effected by a registered instrument, and does not require delivery of possession (!) .
JUDGMENT
T.S. THAKUR, J.
1. An apparent conflict between two earlier decisions rendered by this Court one in Naramadaben Maganlal Thakker v. Pranjivandas Maganlal Thakker & Ors. (1997) 2 SCC 255 and the other in K. Balakrishnan v. K. Kamalam & Ors. (2004) 1 SCC 581 has led to this reference to a larger bench for an authoritative pronouncement as to the true and correct interpretation of Sections 122 and 123 of The Transfer of Property Act, 1882. Before we deal with the precise area in which the two decisions take divergent views, we may briefly set out the factual matrix in which the controversy arises.
2. The plaintiff-respondent in this appeal filed O.S. No.979 of 1989 for a declaration to the effect that revocation deed dated 5th March, 1986 executed by the defendant-appellant purporting to revoke a gift deed earlier executed by her was null and void. The plaintiff's case as set out in the plaint was that the gift deed executed by the defendant-appellant was valid in the eyes of law and had been accepted by the plaintiff when the donee-defendant had reserved to herself during for life, the right to enjoy the benefits arising from the suit property. The purported revocation of the gift in favour of the plaintiff-respondent in terms of the revocation deed was, on that basis, assailed and a declaration about its being invalid and void ab initio prayed for.
3. The suit was contested by the defendant-appellant herein on several grounds including the ground that the gift deed executed in favour of the plaintiff was vitiated by fraud, mis-representation and undue influence. The parties led evidence and went through the trial with the trial Court eventually holding that the deed purporting to revoke the gift in favour of the plaintiff was null and void. The Trial Court found that the defendant had failed to prove that the gift deed set up by the plaintiff was vitiated by fraud or undue influence or that it was a sham or nominal document. The gift, according to trial Court, had been validly made and accepted by the plaintiff, hence, irrevocable in nature. It was also held that since the donor had taken no steps to assail the gift made by her for more than 12 years, the same was voluntary in nature and free from any undue influence, mis-representation or suspicion. The fact that the donor had reserved the right to enjoy the property during her life time did not affect the validity of the deed, opined the trial Court.
4. In the first appeal preferred against the said judgment and decree, the first Additional District Judge, Warangal affirmed the view taken by the trial Court and held that the plaintiff had satisfactorily proved the execution of a valid gift in his favour and that the revocation of a validly made gift deed was legally impermissible. The First Appellate Court also held that the gift deed was not a sham document, as alleged by the defendant and that its purported cancellation/revocation was totally ineffective.
The defendant's case that she had apprehended grabbing of the property by Sankaraiah forcing her to make a sham gift deed was held not established especially when Sankaraiah had died three years prior to the execution of the revocation deed by the defendant. If the gift deed was executed by the donor to save the property from the covetous eyes of Sankaraiah, as alleged by the defendant, there was no reason why the defendant should have waited for three years after the death of Sankaraiah before revoking the same reasoned the Court. The first Appellate Court also affirmed the finding of the trial Court that the donee had accepted the gift made in his favour. The appeal filed by the defendant (appellant herein) was on those findings dismissed.
5. Concurrent findings of facts recorded by the Courts below did not deter the appellants from preferring Civil Second Appeal No.809 of 2003 in which the appellants made an attempt to assail the said findings. The High Court, however, declined to interfere with the judgments and orde
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