Case Note & Summary
The dispute arose from a gift deed executed by the appellant's mother in favor of the appellant, which was later contested by the parents on the grounds of non-fulfillment of conditions. The appellant sought a declaration of ownership and to set aside the cancellation of the gift deeds. The defendants contended that the appellant had not accepted the gifts and had failed to provide financial support to the family. The trial court ruled in favor of the appellant, affirming the validity of the gift under the Transfer of Property Act. However, the first appellate court reversed this decision, stating there was no overt act of possession by the appellant. The High Court upheld this reversal. The Supreme Court analyzed the deeds of gift, emphasizing that acceptance is not limited to overt acts and can be inferred from circumstances, including the handing over of possession. The court noted that the deeds were not onerous and that the presumption of acceptance arises from the delivery of possession. The court ultimately restored the trial court's decision, concluding that the gifts could not be rescinded based on subsequent conduct of the donee. The appeal was allowed, and the judgments of the lower courts were set aside.
Headnote
A) Property Law - Validity of Gift - Acceptance of Gift - Transfer of Property Act, 1882, Sections 122, 123 - Acceptance of a gift is essential for its validity, but the Transfer of Property Act does not prescribe a specific mode of acceptance. The court held that possession given to the donee raises a presumption of acceptance, and the burden of proof lies on the donor to prove otherwise (Paras 13-24).
Issue of Consideration
Whether an averment made in the deed of gift in regard to handing over of possession is sufficient proof of acceptance thereof by the donee
Final Decision
The Supreme Court restored the trial court's decision, affirming the validity of the gift deeds and ruling that the gifts could not be rescinded based on subsequent conduct of the donee.
Law Points
- Acceptance of gift
- Transfer of Property Act
- 1882
- Sections 122
- 123
- Indian Evidence Act
- Sections 91
- 92
- Presumption of acceptance
- Onerous gift
- Rescission of gift
