Madras High Court Hears Appeal Against Trial Court Dismissal of Suit over Settlement Deed and Cancellation Deed. The Court Examines Validity of Unilateral Revocation of Registered Settlement Deed Under CPC Section 96.

High Court: Madras High Court Bench: Principal
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Case Note & Summary

The appeal arose from a suit filed by the plaintiff, the only son of the first defendant and grandson of late Mabel Arul, seeking declaration and permanent injunction concerning a settlement deed and a subsequent cancellation deed over immovable property at No.348, Pantheon Road, Egmore, Chennai. The plaintiff's grandmother owned the suit property by virtue of a gift deed dated 12.07.1956. On 22.10.2008, she executed a registered settlement deed (Doc. No.2108 of 2008) in favour of the plaintiff, reserving a life interest for herself and a right of residence for the first defendant. The settlement deed contained no power of revocation and provided that the beneficiaries could jointly deal with the property. Six days later, on 28.10.2008, the grandmother executed a cancellation deed (Doc. No.2140 of 2008) revoking the settlement, stating that the settlement had not been put into operation and she remained in continuous possession. The plaintiff alleged that the cancellation deed was procured by coercion and undue influence exerted by the first defendant, who had a strained relationship with the family and was living with a foreign lady. The plaintiff also claimed constructive possession under the settlement deed and had registered a protest letter on 24.10.2008. The trial court dismissed the suit on 06.07.2023, leading to the present appeal under Section 96 CPC. The High Court examined the validity of unilateral cancellation of a registered settlement deed without a power of revocation, the allegations of coercion and undue influence, and the effect of constructive possession. The final operative decision of the High Court is not available in the provided excerpt.

Headnote

A) Civil Procedure - Appeal under Section 96 CPC - Maintainability and Scope - Civil Procedure Code, 1908, Section 96 - The appeal was filed under Section 96 CPC challenging the judgment and decree of the trial court dismissing the suit; the High Court considered whether the trial court's dismissal was justified. (Paras 1-3)

B) Property Law - Settlement Deed - Validity of Cancellation - General Principles of Property Law - The core dispute revolved around a settlement deed dated 22.10.2008 executed by the grandmother in favor of the plaintiff with life interest for herself and right of residence for the first defendant, and a subsequent cancellation deed dated 28.10.2008; the court examined whether the cancellation deed, which stated that the settlement had not been put into operation, could revoke the settlement. (Paras 3.3-3.4)

C) Equity - Undue Influence and Coercion - Invalidity of Cancellation - General Principles of Law - The plaintiff alleged that the cancellation deed was obtained by coercion and undue influence of the first defendant; the court considered these allegations. (Paras 3.4)

D) Property Law - Constructive Possession - Effect of Non-Registration of Possession - General Principles of Property Law - The settlement deed provided for constructive possession and the plaintiff received the original deed; the cancellation based on non-operation may be challenged. (Paras 3.3-3.4)

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Issue of Consideration

Whether unilateral cancellation of a registered settlement deed by the settlor, without a power of revocation, is valid; whether such cancellation was vitiated by coercion and undue influence; whether the trial court's dismissal of the suit was justified.

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Law Points

  • Settlement deed
  • cancellation deed
  • unilateral revocation
  • undue influence
  • coercion
  • Section 96 CPC
  • constructive possession
  • life interest
  • right of residence
  • registered document
  • trial court dismissal
  • appellate jurisdiction
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Case Details

2026 LawText (MAD) (08) 22

A.S.No.550 of 2023

2026-08-07

N.SATHISH KUMAR, M.JOTHIRAMAN

2026:MHC:3279

R.Parthasarathy, S.Rekha, Rahul Balaji, AR.L.Sundaresan, W.Thobias Arul, A.Palaniappan

David Arul

Michael Arul, M/s.Temple Financial Consultants Private Limited, Advent Computer Services Ltd., Tecways India Pvt. Ltd., G.Thyagarajan

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Nature of Litigation

Appeal against dismissal of suit for declaration and permanent injunction relating to settlement deed and cancellation deed.

Remedy Sought

Appellant/plaintiff sought to set aside judgment and decree of trial court dismissing suit, and grant reliefs including declaration that cancellation deed is invalid, declaration that settlement deed is valid, and consequential reliefs.

Filing Reason

Trial court dismissed the plaintiff's suit challenging cancellation of settlement deed by grandmother under alleged coercion/undue influence by first defendant.

Previous Decisions

Trial court (XVIII Additional Judge, City Civil Court, Chennai) dismissed O.S.No.4633 of 2019 on 06.07.2023.

Issues

Whether unilateral cancellation of a registered settlement deed by the settlor, without a power of revocation, is valid. Whether the cancellation deed was obtained by coercion and undue influence exercised by the first defendant. Whether the plaintiff is entitled to a declaration that the settlement deed remains valid and binding despite the cancellation deed. Whether the trial court's dismissal of the suit was justified and whether the appeal under Section 96 CPC merits interference.

Submissions/Arguments

Appellant/plaintiff contended that grandmother executed the settlement deed out of natural love and affection without any power of revocation; the cancellation deed was procured by coercion and undue influence by the first defendant, hence invalid. Respondent/first defendant contended that the cancellation deed was valid as the settlement deed had not been put into operation and the grandmother continued in possession and enjoyment of the suit property.

Judgment Excerpts

The intention of the grand mother was very clear that the suit property is to vest in absolutely with the plaintiff subject to a life interest reserved for herself and right to residence for the first defendant. The only reason given for cancellation was that the settlement deed has not been put into operation and she is in continuous possession and enjoyment of the suit property. The purported cancellation deed was subsequently executed by the plaintiff’s grand mother due to coercion, undue influence of the first defendant on the plaintiff’s grand mother and the same is not valid in the eye of law.

Procedural History

The plaintiff filed O.S.No.4633 of 2019 before the XVIII Additional Judge, City Civil Court, Chennai, seeking declaration that cancellation deed dated 28.10.2008 is invalid, that settlement deed dated 22.10.2008 is valid, and for consequential reliefs. The trial court dismissed the suit on 06.07.2023. The plaintiff filed the present appeal A.S.No.550 of 2023 under Section 96 CPC. The appeal was reserved on 29.07.2026 and pronounced on 07.08.2026.

Acts & Sections

  • Civil Procedure Code, 1908: Section 96
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