Case Details: N. P. Saseendran Vs. N. P. Ponnamma (Civil Appeal No. 4312 of 2025)
Critical Point of Judgement: “the transfer of possession of property is not necessary for the acceptance of a valid gift deed.”
Significant Findings in the Judgment: Language of deed is crucial regarding transfer of ownership. As settled in law, the nomenclature of an instrument is immaterial and the nature of the document is to be derived from its contents.
Important lessons from the Judgment:
- Difference between Will & Gift is based on the time at which the possession of property is handed over.
- Difference between Gift and Settlement Deed is based on consideration i.e. any amount payable or not as well as any act to be performed or not to be performed.
- Section 17 of Registration Act mandates registration of Settlement or Gift Deed for an immovable property, however, just because Will is not registered, it does not mean it is invalid.
Essential Conclusions:
- This judgment highlighted the importance of accurate drafting of documents which are related to transfer of ownership, vague words in the same can affect the case adversely.
- For the document to be valid, it is sufficient if it is proved that the same was acted upon during the life time of the executant.
- Once a gift has been acted upon, the same cannot be unilaterally cancelled. The contention of fraud cannot be helpful. Hence, Sub Registrar had no right to register the cancellation deed.
- The reasons for cancellation or revocation of gift have to be proved in a court of law, and therefore, unilateral cancellation of the Gift Deed is Void.
Judgement Analyzed By,
Shailendra M Deshpande
Advocate & Trademark Attorney
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