This case addresses the validity of a gift deed dated 05.03.1983, where the Tamil Nadu Khadi and Village Industries Board was granted title over a property for manufacturing Khadi products. The appeal by the donor, challenging the gift deed's validity based on an alleged revocation deed, was dismissed. The court affirmed that the gift deed was absolute and irrevocable under Section 126 of the Transfer of Property Act, 1882, as it contained no provisions for revocation. The court also held that the suit was within the limitation period for recovery of possession.

1. Counsel Representation and Hearing

• Para 1: Ms. T. Archana, counsel for the appellant, and Mr. Vipin Kumar Jai, counsel for the respondent, were heard.

2. Plaintiff’s Title Claim

• Para 2: Tamil Nadu Khadi and Village Industries Board (plaintiff-respondent) filed a suit to declare title over a 3750-square-foot property, citing a registered gift deed from 1983.

3. Trial Court Dismissal

• Para 3: Trial court dismissed the suit on grounds of non-acceptance of the gift deed. The appellate court and High Court later reversed this decision.

4. Supreme Court Appeal Admission

• Para 4: Delay in filing the Special Leave Petition (SLP) was condoned, and the appeal was admitted.

5-7. Validity of the Gift Deed

• Para 5-7: Central issue: Whether the gift deed, dated 05.03.1983, was accepted, acted upon, and valid despite a revocation attempt in 1987. The deed was deemed accepted and implemented as per Exhibit A-1.

8-9. Absolute Gift Deed Terms

• Para 8-9: The deed was absolute, allowing no right of revocation. Evidence indicated that the plaintiff accepted and acted upon the gift, including property possession and subsequent construction.

10. High Court and Appellate Court Findings

• Para 10: The first appellate and High Court findings confirmed acceptance and usage of the gifted property by the plaintiff.

11-15. Revocation Deed’s Impact and Section 126 Application

• Para 11-15: The court held that the gift deed did not reserve any right of revocation and, under Section 126 of the Transfer of Property Act, could not be revoked on a mere will. Exceptions for revocation, such as mutual agreement, specified events, or contract rescindment, were not met.

16. Non-Utilization of Property Not Grounds for Revocation

• Para 16: Not using the property for the intended purpose did not justify revocation as there was no such provision in the deed.

17-20. Limitation for Suit Filing

• Para 17-20: The court rejected the contention that the suit was barred by limitation, noting that for possession claims, the limitation period is 12 years as per Article 65 of the Limitation Act.

21-24. Limitation Act and Recovery of Possession

• Para 21-24: The limitation for declaratory suits (3 years under Article 58) is distinct from possession claims. The recovery of possession based on title extended the period to 12 years, making the suit timely.

25-26. Final Ruling

• Para 25-26: No further issues were raised, and the appeal was dismissed, upholding the lower courts’ decisions.

27-28. Appeal Dismissal and Pending Applications

• Para 27-28: Appeal dismissed as meritless; all pending applications disposed of.

Acts and Sections Discussed

1. Transfer of Property Act, 1882

   • Section 126: Conditions and limitations on revocation of gifts.

2. Limitation Act, 1963

   • Article 58: Limitation for suits involving declaration.
   • Article 65: Limitation for suits involving recovery of possession.

Ratio Decidendi

The Supreme Court reaffirmed that an absolute gift deed, without provisions for revocation, is irrevocable. This decision enforces Section 126 of the Transfer of Property Act, which only permits revocation under specific conditions. Additionally, possession recovery claims based on title are governed by a 12-year limitation period, thereby confirming the plaintiff’s timely action.

Subjects:

Gift Deed, Transfer of Property Act, Revocation, Section 126, Limitation Act, Declaratory Relief, Possession Recovery, Tamil Nadu Khadi