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Issues:
1. Validity of oral gift by Habib Baksh in favor of Mt. Kulsum Bibi in lieu of her dower. 2. Whether the gift was made with the intent to defraud creditors. Analysis: 1. The trial court initially held that no gift was made by Habib Baksh to Mt. Kulsum Bibi, as the alleged gift was reduced to writing. However, the High Court, in a related case, found that an oral gift had indeed been made by Habib Baksh to his wife, as evidenced by an application to the Cantonment authorities. The High Court upheld this finding and determined that the gift was valid, as it was made in consideration of Kulsum Bibi relinquishing her claim to dower. The court also confirmed that the dower amount was indeed &8377;21,000, as found by the trial court. 2. On the issue of fraud, the trial court had found that the gift was fraudulent and intended to defeat the claims of creditors. However, the High Court disagreed and held that the transaction was a legitimate preference given by the debtor to one creditor, which did not warrant setting aside the gift as fraudulent. The court emphasized that the transaction, properly analyzed, consisted of two distinct gifts: one by Habib Baksh to his wife, and one by Kulsum Bibi of her right to recover dower. The court concluded that the transaction was not a sale but a valid gift, despite the absence of a registered instrument. 3. The court referenced legal principles related to 'hiba-bil-iwaz' and distinguished between a true gift and a transfer for consideration. The court clarified that the transaction in question was a gift, as Kulsum Bibi had effectively transferred her right to dower to her husband. The court also dismissed the argument that the property transferred exceeded the dower amount relinquished, as there was no evidence supporting this claim. Consequently, the High Court allowed the appeal, set aside the lower court's order, and upheld Kulsum Bibi's claim to the property, releasing it from attachment. In summary, the High Court of Allahabad determined the validity of an oral gift by Habib Baksh to Mt. Kulsum Bibi in consideration of her relinquishing her dower amount. The court found the gift to be legitimate and not fraudulent, emphasizing the distinction between a gift and a sale. The court upheld Kulsum Bibi's claim to the property in dispute and released it from attachment, ruling in her favor.
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