Case Note & Summary
The respondent, Tamil Nadu Khadi and Village Industries Board, filed a suit for declaration of title and recovery of possession of a property measuring 3750 sq ft in Kotlambakkam, Cuddalore, based on a registered gift deed dated 05.03.1983 executed by the appellant. The trial court dismissed the suit on the ground that the gift deed was not accepted. The first appellate court reversed, decreeing the suit, and the High Court dismissed the second appeal. The Supreme Court considered whether the gift was validly accepted and whether it could be revoked. The Court held that the gift deed itself stated acceptance, and the donee's conduct—taking possession, applying for mutation, and raising construction—proved acceptance. The gift deed contained no revocation clause. Under Section 126 of the Transfer of Property Act, 1882, a gift cannot be revoked except in three specific contingencies: (i) agreement for revocation on a specified event not dependent on donor's will; (ii) gift revocable at donor's mere will is void; (iii) gift may be revoked if it were a contract that could be rescinded. None applied. The revocation deed dated 17.08.1987 was void. On limitation, the Court held that since the suit sought declaration and possession, limitation was 12 years under Article 65 of the Limitation Act, 1963, from the date possession became adverse. The suit filed on 25.09.1991 was within time. The appeal was dismissed.
Headnote
A) Transfer of Property Act - Gift - Revocation - Section 126 - A gift validly made cannot be revoked except in the three contingencies specified in Section 126: (i) agreement between donor and donee for revocation on happening of specified event not dependent on donor's will; (ii) gift revocable at mere will of donor is void; (iii) gift may be revoked if it were a contract that could be rescinded. In the present case, none of the exceptions applied as the gift deed contained no revocation clause and was not in the nature of a contract. Held that the revocation deed dated 17.08.1987 was void ab initio (Paras 12-15). B) Transfer of Property Act - Gift - Acceptance - Section 122 - Acceptance of a gift can be inferred from conduct, including taking possession, applying for mutation, and raising construction. The gift deed itself stated that the donee accepted the property from the date of the deed. Exhibits A-2 to A-4 proved that possession was taken and mutation applied. Held that the gift was duly accepted and acted upon (Paras 6-10). C) Limitation Act, 1963 - Suit for Declaration and Possession - Article 65 - Where a suit for declaration of title includes a further relief for recovery of possession, the limitation is governed by the article applicable to the further relief, i.e., 12 years under Article 65 from the date when possession becomes adverse. The right to sue for declaration continues as long as the right to property subsists. Held that the suit filed on 25.09.1991 was not barred by limitation (Paras 17-24).
Issue of Consideration
Whether the registered gift deed dated 05.03.1983 was validly accepted and acted upon, and whether it could be revoked by the donor without reserving any right of revocation under Section 126 of the Transfer of Property Act, 1882.
Final Decision
The Supreme Court dismissed the appeal, upholding the judgments of the first appellate court and the High Court. The gift deed dated 05.03.1983 was held valid, accepted, and acted upon. The revocation deed dated 17.08.1987 was declared void ab initio. The suit was not barred by limitation.
Law Points
- Gift deed cannot be revoked except under Section 126 Transfer of Property Act
- 1882
- Acceptance of gift can be inferred from conduct and mutation
- Limitation for suit for declaration and possession is 12 years under Article 65 Limitation Act
- 1963
