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1981 (3) TMI 250 - SC - Indian Laws

  1. 2023 (1) TMI 337 - SC
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  89. 2019 (10) TMI 571 - AAR
  90. 2019 (6) TMI 1305 - AAR
  91. 2019 (4) TMI 1943 - AAR
  92. 2019 (3) TMI 540 - AAR
Issues Involved:
1. Interpretation of sub-section (6) of Section 5 of the U.P. Imposition of Ceiling on Land Holdings Act, 1960.
2. Validity of the gift deed executed after the due date prescribed by the Act.
3. Whether a gift can be considered a transfer for adequate consideration under the proviso to sub-section (6) of Section 5.

Issue-wise Detailed Analysis:

1. Interpretation of sub-section (6) of Section 5 of the U.P. Imposition of Ceiling on Land Holdings Act, 1960:
The judgment focuses on the interpretation of sub-section (6) of Section 5 of the U.P. Imposition of Ceiling on Land Holdings Act, 1960, which states, "In determining the ceiling area applicable to a tenure-holder, any transfer of land made after the twenty-fourth day of January, 1971, which but for the transfer would have been declared surplus land under this Act, shall be ignored and not taken into account." The proviso to this sub-section carves out exceptions, particularly clause (b), which allows for transfers made in good faith, for adequate consideration, and under an irrevocable instrument, provided they are not benami transactions.

2. Validity of the gift deed executed after the due date prescribed by the Act:
The gift deed in question was executed on January 28, 1972, in favor of the petitioner's granddaughter, Sonia. The Prescribed Authority rejected the gift on the grounds that it was made after the due date of January 24, 1971, as per sub-section (6) of Section 5. The District Judge, however, found the gift to be bona fide and executed in good faith, but the High Court overruled this, stating that a gift, being a transfer without consideration, does not fulfill the requirements of clause (b) of the proviso. The Supreme Court upheld the High Court's decision, emphasizing that the statutory language must be interpreted as it stands, even if it leads to hardship.

3. Whether a gift can be considered a transfer for adequate consideration under the proviso to sub-section (6) of Section 5:
The Supreme Court delved into the legal definitions and interpretations of "gift" and "consideration." It cited various legal dictionaries and precedents to establish that a gift is a voluntary transfer of property without consideration. The Court concluded that the term "adequate consideration" used in clause (b) of the proviso excludes gifts, as gifts are inherently without consideration. The Court rejected the argument that love and affection or spiritual benefit could be considered adequate consideration, stating that such motives do not equate to legal consideration.

Conclusion:
The Supreme Court concluded that the gift deed in question does not satisfy the requirements of clause (b) of the proviso to sub-section (6) of Section 5 of the Act, as it lacks adequate consideration. The Court upheld the High Court's decision to ignore the gift deed in determining the surplus land. The appeal was dismissed, emphasizing that individual hardships must yield to the larger interests of the community as mandated by the social legislation.

Judgment:
The appeal was dismissed without any order as to costs. The Supreme Court affirmed the High Court's decision, thereby upholding the statutory interpretation that excludes gifts from the protective ambit of clause (b) of the proviso to sub-section (6) of Section 5 of the Act.

 

 

 

 

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