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Validity of father's gift of joint family property to daughters and daughter's daughter under Hindu Law. Analysis: Issue 1: Power of Father to Make Gift of Joint Family Property The case involved the power of a father to gift a portion of joint family property to his daughters and daughter's daughter. The father made gift deeds in favor of the plaintiffs, who were sisters and daughter of another sister of the second defendant. The lower courts declared the gift deeds not binding on the second defendant's share due to his indebtedness and impending insolvency. The District Judge applied Section 53 of the Transfer of Property Act, stating that the gifts would prevent the property from being available to creditors. However, the Judge found the gifts reasonable in proportion to the family property but doubted their bona fide nature due to the son's financial situation. Issue 2: Application of Hindu Law on Gifts by Father The judgment emphasized that the validity of the gifts should be judged based on Hindu Law principles, not the Transfer of Property Act. It highlighted the moral obligation of a father to provide a reasonable portion of family property as a marriage portion to daughters. The judgment cited previous cases stating that such obligations continue even after the father's death and can be fulfilled by the managing member. It clarified that a father can make a gift to daughters without reference to the son, subject to restrictions imposed by Hindu Law. Issue 3: Reasonableness of the Gift and Financial Circumstances The judgment discussed the reasonableness of the gift, considering factors like family property extent, indebtedness, and family obligations. It argued that the father's power to gift should not be hindered by a son's financial situation. It rejected the argument that the gift lacked bona fides due to potential impact on the son's creditors, stating that creditors have no claim on the joint family property until seizure. The judgment upheld the gifts to daughters as reasonable and binding on the family property but deemed the gift to the daughter's daughter invalid under Hindu Law. Conclusion: The judgment allowed the second appeals, reversing lower court decisions and granting decrees in favor of the plaintiffs regarding the gifts made by the father to his daughters. It dismissed one appeal concerning the gift to the daughter's daughter, stating that such gifts are not binding under Hindu Law. The judgment clarified the father's power to gift family property under Hindu Law principles, emphasizing the continuing moral obligation to provide for daughters.
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