Case Note & Summary
The dispute involved a property originally owned by Smt. Chand Bai, who mortgaged it to Sugan Chand, who subsequently mortgaged it to Nathulal. When Nathulal began demolishing parts of the property, Smt. Chand Bai filed a civil suit for mandatory injunction and declaration of easementary rights, which was decreed in her favor. During the pendency of the suit, she executed a gift deed in favor of Surendra Kumar, the appellant. The appellant later filed a suit for redemption of the mortgage, which was contested primarily by Nathulal. The trial court ruled in favor of the appellant, but the lower appellate court dismissed the appeal, stating the gift deed was not duly proved. The High Court summarily dismissed the second appeals filed by the appellant, leading to the current appeal. The Supreme Court analyzed the legal requirements for proving the deed of gift under the Indian Evidence Act and the Transfer of Property Act. It concluded that the deed was validly executed and admitted by the donor, thus the appellant had the right to redeem the mortgage and recover possession. The court found the lower appellate court's dismissal to be erroneous and restored the trial court's decree, allowing the appeal with costs.
Headnote
A) Property Law - Gift Deed - Proof of Execution - Indian Evidence Act, 1872, Section 68 - The court held that a registered deed of gift can be received in evidence without examining an attesting witness if the execution is not specifically denied. The trial court correctly admitted the deed of gift as evidence since the donor admitted its execution, and the appellate court erred in its assessment (Paras 4-5). B) Property Law - Right to Redeem Mortgage - Transfer of Property Act, 1882, Section 123 - The court found that the appellant had the right to redeem the mortgage as the trial court had decreed in favor of the plaintiff. The appellate court's dismissal of the suit was reversed, restoring the trial court's decree (Paras 4-5).
Issue of Consideration
Whether the deed of gift was duly proved and if the appellant had the right to redeem the mortgage and recover possession of the property.
Final Decision
The Supreme Court allowed the appeal, restored the trial court's decree, and set aside the judgments of the lower appellate court and the High Court.
Law Points
- Proof of execution
- registered deed
- collusive transaction
- right to redeem mortgage
- easementary rights
