2024 (10) TMI 1329 - SC - Indian Laws

Suit for declaration of title over the suit property - recovery of possession - whether the registered gift deed dated 05.03.1983 was duly acted upon and accepted and is a valid document which continue to exist despite its revocation on 17.08.1987 as the donor had not reserved the right to revoke the same? - HELD THAT - Admittedly, the present suit for declaration and recovery of possession of the suit property was filed by the plaintiffrespondent on 25.09.1991. The court of first instance held that as the same was not filed within three years from the date of revocation of the gift deed, i.e., 17.08.1987 (Exhibit B-2), the suit is barred by limitation - Once it is held that the gift deed was validly executed resulting in the absolute transfer of title in favour of the plaintiff-respondent, the same is not liable to be revoked, and as such the revocation deed is meaningless especially for the purposes of calculating the period of limitation for instituting the suit. In the case at hand, the suit is not simply for the declaration of title rather it is for a further relief for recovery of possession. It is to be noted that when in a suit for declaration of title, a further relief is claimed in addition to mere declaration, the relief of declaration would only be an ancillary one and for the purposes of limitation, it would be governed by the relief that has been additionally claimed. The further relief claimed in the suit is for recovery of possession based upon title and as such its limitation would be 12 years in terms of Article 65 of the Schedule to the Limitation Act. Though the limitation for filing a suit for declaration of title is three years as per Article 58 of the Schedule to the Limitation Act but for recovery of possession based upon title, the limitation is 12 years from the date the possession of the defendant becomes adverse in terms of Article 65 of the Schedule to the Limitation Act. Therefore, suit for the relief of possession was not actually barred and as such the court of first instance could not have dismissed the entire suit as barred by time. There are no error or illegality on part of the first appellate court and the High Court in decreeing the suit of the plaintiff-respondent - appeal dismissed.

Summary

Issues:
Validity of registered gift deed and acceptance
Revocation of gift deed
Limitation for filing the suit

Validity of registered gift deed and acceptance:
The plaintiff filed a suit based on a registered gift deed dated 05.03.1983 for a property measuring 3750 square feet. The Trial Court dismissed the suit citing lack of acceptance of the gift deed. However, the District Judge allowed the appeal, decreeing the suit. The High Court upheld the decision, stating the gift was valid and accepted. The plaintiff's possession and actions post-gift deed, including applying for mutation, proved acceptance. The gift deed was absolute, with no revocation clause, establishing the plaintiff's title over the property.

Revocation of gift deed:
The question was whether the gift deed could be revoked via a revocation deed dated 17.08.1987. Section 126 of the Transfer of Property Act, 1882, was cited, stating a gift can only be revoked under specific circumstances. The exceptions to revocation were analyzed, concluding that none applied in this case. The revocation deed was deemed void, as the gift was validly executed and not subject to revocation.

Limitation for filing the suit:
The issue of limitation was raised, with the court of first instance holding the suit barred due to not being filed within three years of the alleged revocation. However, as the gift was found valid, the revocation deed was deemed irrelevant for calculating the limitation period. The suit for possession, governed by Article 65 of the Limitation Act, had a 12-year limitation period, ensuring the suit was not time-barred. The appeal was dismissed, affirming the lower courts' decisions in favor of the plaintiff.