1999 (2) TMI 65 - SC - Income Tax

Whether the right of maintenance given to a widow would crystallise into a full-fledged right by virtue of section 14(1) of the Act? Held that - In the present case, the widow was conferred the limited right in lieu of maintenance in recognition of her pre-existing right. The limited interest conferred upon her by virtue of the will being in lieu of maintenance and in recognition of her pre-existing right, the said right transformed into an absolute right by virtue of section 14(1) of the Act. The said right was not conferred on her for the first time. Thus sub-section (2) of section 14 of the Act has no application to the present case. Under such circumstances, the widow became the absolute owner of house No. 27 and was fully competent to execute the gift deed in favour of her daughter. The gift deed executed by the widow was thus valid. Appeal allowed.

Summary

Issues:
Interpretation of Hindu Succession Act, 1956 - Application of section 14(1) and 14(2) - Validity of gift deed executed by widow in favor of daughter.

Analysis:
The case involved a dispute regarding the validity of a gift deed executed by a widow in favor of her daughter concerning a property owned by her late husband. The key issue was whether the widow's right to possession of the property, granted in lieu of maintenance, transformed into an absolute right under section 14(1) of the Hindu Succession Act, 1956, thereby allowing her to gift the property. The plaintiff argued that the widow's rights fell under section 14(2) as they were conferred for the first time by the will. The court analyzed the historical context of Hindu marriage and maintenance laws, emphasizing the statutory recognition of a widow's right to maintenance as a pre-existing right.

The court referred to previous judgments, including V Tulasamma v. Sesha Reddy, which clarified that section 14(1) applies when the widow's right is in recognition of a pre-existing right or in lieu of maintenance, transforming her limited interest into absolute ownership. Conversely, section 14(2) applies when a new right is conferred for the first time with restrictions. The court in Raghubar Singh v. Gulab Singh further emphasized that section 14(1) automatically enlarges a widow's limited interest into absolute ownership despite any restrictions.

Applying these principles to the case at hand, the court found that the widow's right to possession of the property was granted in recognition of her pre-existing right and in lieu of maintenance. Therefore, her limited interest transformed into absolute ownership under section 14(1), making her competent to execute the gift deed in favor of her daughter. Consequently, the court set aside the judgments of the lower courts and dismissed the suit filed by the plaintiff-respondent, ruling the gift deed as valid.