Bombay High Court Allows Second Appeal in Partition Suit, Upholds Gift Deed as Valid. Lower Appellate Court's Reversal Based on Suspicious Circumstances Set Aside as Gift Deed Was Registered and Executed by Owner of Self-Acquired Property.

High Court: Bombay High Court Bench: NAGPUR In Favour of Accused
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Case Note & Summary

The case involves a partition suit concerning agricultural lands and a house property. The original owner, Damduji, executed a registered gift deed dated 12.05.1987 (Exhibit 92) in favor of the defendants (his sons) regarding a house property. The plaintiff (another son) sought partition of the suit properties, claiming the gift deed was null and void. The trial court decreed partition of the agricultural lands with 1/4th share each to the parties and rejected the plaintiff's challenge to the gift deed, granting a declaration of ownership and possession to the defendants over the house. The lower Appellate Court, in Regular Civil Appeal No.259 of 2010, dismissed the defendants' appeal but allowed the plaintiff's cross-objection, modifying the decree to include the house property in the partition, holding that the gift deed was shrouded by suspicious circumstances. The defendants appealed to the High Court. The High Court framed a substantial question of law regarding the correctness of the Appellate Court's reversal. The High Court noted that the gift deed was a registered document executed by Damduji over his self-acquired property, and no objection to his competency was raised. The only ground for reversal was the alleged suspicious circumstances, but the High Court found no evidence to support such a finding. Consequently, the High Court allowed the second appeal, set aside the Appellate Court's judgment, and restored the trial court's decree, thereby upholding the validity of the gift deed and the defendants' ownership of the house.

Headnote

A) Property Law - Gift Deed - Validity - Registered Gift Deed of Self-Acquired Property - The lower Appellate Court reversed the trial court's decree on the ground that the gift deed was shrouded by suspicious circumstances, but the High Court held that the gift deed was a registered document executed by the owner of self-acquired property, and no objection to his competency could be raised. The Appellate Court's finding of suspicious circumstances was not supported by evidence, and the substantial question of law was answered in favor of the appellant-defendants. (Paras 3-5)

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Issue of Consideration

Whether the lower Appellate Court was right in reversing the decree passed by the trial Court granting a declaration that the defendants established their ownership in respect of the house property on the basis of the gift deed dated 12.05.1987 at Exhibit 92 and passing a decree of possession in respect thereof.

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Final Decision

The High Court allowed the second appeal, set aside the judgment and decree of the lower Appellate Court dated 05.03.2015, and restored the judgment and decree of the trial Court dated 30.04.2010. No order as to costs.

Law Points

  • Gift deed validity
  • Suspicious circumstances
  • Registered document
  • Self-acquired property
  • Partition suit
  • Appellate court reversal
  • Substantial question of law
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Case Details

2016 LawText (BOM) (06) 109

Second Appeal No.335 of 2015

2016-06-17

R.K. Deshpande, J.

Shri M.R. Joharapurkar for Appellant, Shri N.S. Bhattad for Respondents

Shalik s/o Damdu Dhobale

Sitaram s/o Damdu Dhobale, Dashrath s/o Damdu Dhobale, Suresh s/o Damdu Dhobale

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Nature of Litigation

Second appeal against the judgment of the lower Appellate Court in a partition suit.

Remedy Sought

The appellant-defendants sought to set aside the lower Appellate Court's judgment and restore the trial court's decree upholding the gift deed and their ownership of the house property.

Filing Reason

The lower Appellate Court reversed the trial court's decree on the ground that the gift deed was shrouded by suspicious circumstances.

Previous Decisions

The trial court in Regular Civil Suit No.9 of 2009 decreed partition of agricultural lands with 1/4th share each and rejected the challenge to the gift deed, granting declaration of ownership and possession to defendants over the house. The lower Appellate Court in Regular Civil Appeal No.259 of 2010 dismissed the defendants' appeal and allowed the plaintiff's cross-objection, modifying the decree to include the house in partition.

Issues

Whether the lower Appellate Court was right in reversing the trial court's decree granting declaration of ownership based on the gift deed dated 12.05.1987.

Submissions/Arguments

The appellant argued that the gift deed was a registered document executed by the owner of self-acquired property and no suspicious circumstances were proved. The respondents supported the Appellate Court's finding of suspicious circumstances.

Ratio Decidendi

A registered gift deed executed by the owner of self-acquired property cannot be set aside on the ground of suspicious circumstances without evidence. The lower Appellate Court's reversal was not justified.

Judgment Excerpts

Giftdeed at Exhibit92 is a registered document and was executed by Damduji in respect of his self acquired property. The only ground on which the lower Appellate Court has reversed the decree passed by the trial Court is that the giftdeed at Exhibit92 was shrouded by suspicious circumstances.

Procedural History

Regular Civil Suit No.9 of 2009 was decreed by the trial Court on 30.04.2010. The defendants filed Regular Civil Appeal No.259 of 2010 and the plaintiff filed a cross-objection. The lower Appellate Court dismissed the appeal and allowed the cross-objection on 05.03.2015. The defendants then filed the present Second Appeal No.335 of 2015, which was allowed on 17.06.2016.

Acts & Sections

  • Code of Civil Procedure, 1908: Section 54
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High Court Bombay High Court Allows Second Appeal in Partition Suit, Upholds Gift Deed as Valid. Lower Appellate Court's Reversal Based on Suspicious Circumstances Set Aside as Gift Deed Was Registered and Executed by Owner of Self-Acquired Property.
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