1996 (9) TMI 618 - SC - Indian Laws

Summary

Issues involved:
The issues involved in this case are the validity of a gift deed, cancellation of the gift deed, interpretation of the terms of the gift deed, acceptance of the gift, possession of the property, and the rights of the donor and the donee.

Validity of Gift Deed:
The appellant contended that the gift deed was conditional, with the donor reserving life interest in the property and not handing over possession, making the gift incomplete. The donor subsequently cancelled the gift and executed a will in favor of the appellant and her brother. The respondent argued that the gift was complete as per the recitals in the gift deed, and the donor had no power to cancel it.

Interpretation of Gift Deed:
The material part of the gift deed specified the conditions under which the property was gifted, including the right to collect rent for maintenance during the donor's lifetime. The cancellation deed also highlighted the conditions under which the gift was being cancelled, indicating that possession and enjoyment remained with the donor during his lifetime.

Acceptance of Gift:
Section 122 of the Transfer of Property Act defines a gift as the transfer of property voluntarily and without consideration, accepted by the donee during the donor's lifetime. In this case, there was no evidence of acceptance of the gift, and the donor retained possession and enjoyment of the property.

Cancellation of Gift Deed:
The cancellation deed explicitly stated that the conditional gift was being cancelled due to the donee's failure to fulfill oral conditions, and possession would remain with the donor. The donor made it clear that the gift was ineffective and inoperative, leading to the cancellation.

Rights of the Parties:
After the cancellation of the gift deed, the donor executed a will in favor of the appellant and her brother, indicating his intention to transfer the property to them. The court allowed the appeal, setting aside the judgments and decrees of the lower courts, and dismissing the suit with no costs incurred.