Citation : 2022 Latest Caselaw 8654 Guj
Judgement Date : 30 September, 2022
C/SA/101/1994 JUDGMENT DATED: 30/09/2022
IN THE HIGH COURT OF GUJARAT AT AHMEDABAD
R/SECOND APPEAL NO. 101 of 1994
FOR APPROVAL AND SIGNATURE:
HONOURABLE DR. JUSTICE A. P. THAKER
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1 Whether Reporters of Local Papers may be allowed No
to see the judgment ?
2 To be referred to the Reporter or not ? Yes
3 Whether their Lordships wish to see the fair copy No
of the judgment ?
4 Whether this case involves a substantial question No
of law as to the interpretation of the Constitution
of India or any order made thereunder ?
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PARVATIBEN ISHWARBHAI
Versus
KASHIBEN CHATURBHAI PATEL & 8 other(s)
==========================================================
Appearance:
MR HR PRAJAPATI(674) for the Appellant(s) No. 1.1,1.2,1.3,1.4,1.5
DECEASED LITIGANT for the Respondent(s) No. 8
MR BS PATEL(602) for the Respondent(s) No. 1,3
MR CHIRAG B PATEL(3679) for the Respondent(s) No.
2,4,5,6,7,8.1,8.2,8.3,9
MRS RANJAN B PATEL(646) for the Respondent(s) No. 1,2,3,4,5,6,7,9
==========================================================
CORAM:HONOURABLE DR. JUSTICE A. P. THAKER
Date : 30/09/2022
ORAL JUDGMENT
1. The present Second Appeal under Section 100 of the
Code of Civil Procedure is preferred by the original
defendant against the judgment and decree dated
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28.12.1993 passed by the Assistant Judge, Bharuch
in Regular Civil Appeal No.95 of 1988 reversing the
judgment and decree passed by the learned Civil
Judge, Junior Division at Bharuch in Regular Civil
Suit No.374 of 1984 dismissing the suit of the
plaintiff. It is contended that the Appellate Court has
erred in reversing the judgment and decree of the
Trial Court which has dismissed the suit of the
plaintiff. It is contended that the Appellate Court has
erred in holding that the predecessor of the original
plaintiff had no right, title or interest, to execute the
gift deed of his share in favour of the original
plaintiff. It is contended that it ought to have been
held that the plaintiff is the owner of the one half of
the suit property and he is entitled to get his share
by metes and bounds of the suit properties. It is also
contended that the Appellate Court ought to have
held that the original defendants have failed to prove
that the suit property has come to them by process
of oral partition. It is also contended that the
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Appellate Court has not properly considered the oral
evidence as well as not interpreted the gift deed at
exhibit 55. It is also contended that the Appellate
Court has failed to hold that the executor of the gift
deed Mr.Mohanlal was having right title or interest
to gift the suit property in the year 1979. It is also
contended that the Appellate Court has erroneously
held that the properties were partitioned prior to the
year 1975 between the predecessors of both the
sides and that what ever portion remains
unpartitioned was finally partitioned by family
arrangements as per exhibit 52 and as such the gift
deed by Mr.Mohanlal has no right to execute the
same.
2. It appears from the record that one Ms.Parvatiben
has filed a Civil Suit No.374 of 1984 before the Court
of Civil Judge at Bharuch contending that the
property in question was jointly belonging to her
father-in-law Mr.Mohanlal and their defendant
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Mr.Chaturbhai Amardas Patel. It is also alleged that
all are Hindu and therefore Hindu Succession
Act,1956 applies. It is contended that Mr.Mohanlal
and the defendant Mr.Chaturbhai had one half share
in the suit property. It is contended by the plaintiff
that on 14.05.1979, by a registered gift deed,
Mr.Mohanlal has given it to her and she is in
possession. It is contended that she is having equal
half share and enjoying it with the defendant. It is
contended that on the said, she has informed the
defendant for actual partition of the property. The
defendant denied to do so. On this basis, the plaintiff
has filed the suit for actual partition of the said
property and for possession of her share.
3. The defendant has resisted the suit. It appears that
during the pendency of the proceedings, the
defendant has died and therefore their heirs came to
be joined in the suit. The defendant side have filed a
written statement, at exhibit 20 wherein they have
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denied the correctness of the plaintiffs averments.
According to the defendants, the property nos.214
and 185 were mutually divided among them by oral
partition on 08.12.1975 and out of property no.185,
the plaintiff's father-in-law were given 102/33 feet
while the defendant's father was given 88/33 feet
and as the defendant's father was given less land
area from the property no.185 and with a view to
divide the equal share, property no.214 was given to
the defendant's father by mutual partition of both
these properties, the remaining property was
divided among the brothers on 08.12.1975 in
presence and by beneficiary of one Mr.Veribhai
Prabhudas and Mr.Chaturbhai and writing was also
made to that effect and after that no property was
left undivided among the brothers. According to the
defendants, the property nos.185 and 214 were
mutually divided on 08.12.1975. It is also the stand
of the defendants that merely because the suit
property runs in the joint name in records, the
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plaintiff had compelled her father-in-law to execute a
gift deed in her favour to harass the defendants. The
defendant has also stated that the plaintiff has also
served him notice and it was replied and thereafter,
the defendant has made constructions of residences
on the disputed property and at that time, the
plaintiff has not raised any objections. It is the stand
of the defendants that the suit is barred by law of
limitations and as the property no.214 was given to
the defendant by mutual partition, the donor has no
right to give a very property to the plaintiff in gift
and therefore the defendants have requested to
dismiss the suit with cost.
4. On the basis of the pleadings, the Trial Court has
framed following issues at exhibit 21:-
(i) Whether the plaintiff proves that he is the owner
of the half share of the suit property?
(ii) Whether the plaintiff is entitled to get his share
by metes and bounds?
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(iii) Whether the defendants prove that they are the
owners of the suit property as it has come to them in
the oral partition?
(iv) Whether the plaintiff proves that the ownership
of the suit property in view of the gift deed dated
14.05.1979?
(v) What order?
5. On the basis of the evidence on records and the
submissions made on behalf of both the sides,
affidavits, the Trial Court has answered the issue
nos.1, 2 and 4 in affirmative and no.3 in negative
and has ultimately decreed the suit of the plaintiff
and directed the defendants to put the plaintiff in
possession of one half share of the suit property i.e.
gabhan no.214. He has also directed the Collector,
Bharuch to divide the property in question by metes
and bounds in the equal share as decreed.
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6. Being aggrieved and dissatisfied with the judgment
of the Trial Court, the original defendants have
preferred Regular Civil Appeal No.95 of 1988 before
the District Court, Bharuch. The said appeal came to
be heard by the learned Assistant Judge, Bharuch
who by its impugned judgment and decree dated
28.12.1993 allowed the appeal and set aside the
judgment and decree passed by the learned Civil
Judge, Junior Division, Bharuch in Regular Civil Suit
No.374 of 1984 and the suit of the plaintiff ordered
to be dismissed. It appears from the impugned
judgment of the Appellate Court that while deciding
the appeal, the Appellate Court has framed the
following points of determination in para 3, thereof:-
(i) Whether the appellant proves that the judgment
of the Trial Court is illegal, arbitrary one and not at
law? Whether it requires any modification?
(ii) Whether the appellant proves that the
respondents have no right title or interest in the suit
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property?
(iii) Whether the appellant proves that the
predecessors of respondent i.e. Mr.Mohanbhai was
having no right title or interest to execute the gift
deed of his share in favour of the respondent?
(iv) Whether the appellant proves that the defendant
was not competent to file the suit?
(v) What order and decree?
7. The Appellate Court has decided the aforesaid point
no.1, 2 and 3 in affirmative and point no.4 in
negative and has ultimately passed the order of
dismissing the suit and alienate the appeal.
8. Being aggrieved with the aforesaid judgment and
decree of the First Appellate Court, the original
plaintiff has preferred the present Second Appeal.
9. The present Second Appeal has been admitted to
decide the following substantial questions of law:-
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"Whether in the facts and in the circumstances of
the case, lower Appellate Court erred in construing
and interpreting the gift deed at exhibit 55 as well
as the deed of partition at exhibit 62?"
10. For the brevity and convenience, the parties are
referred to herein as plaintiff and defendant as per
their status before the Trial Court.
11. Heard learned advocate Mr.H.R.Prajapati for
the appellant-plaintiff and learned advocate
Mr.C.B.Patel for the respondent-defendant at length.
Perused the judgment of both the Courts below as
well as material placed on record and the decisions
cited at bar.
12. Learned advocate Mr.H.R.Prajapati for the
plaintiff has submitted that the plaintiff has filed the
suit for partition for the two plots. He has submitted
that the plaintiff is daughter-in-law of the donor. He
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has stated that the land is known as gabhan and
there were two gabhans. According to him, there
was a joint possession of both the parties to both the
gabhan nos.185 and 214. He has submitted that as
per the exhibit 55 registered gift deed, the deceased
has given half portion of the gabhan land which was
of his share in the joint property to the plaintiff by
gift deed. He has submitted that the defence of the
defendant is regarding oral partition in the year
1975 and there was a writing to that effect wherein
there is no mention of gabhan no.214. He has also
submitted that according to the defendant as land of
said gabhan no.214 was already partitioned orally
between two brothers, same was not mentioned in
the writing executed for partition of the property. It
is submitted that this is not believable. According to
him, the story put up by the defendant regarding
excess land given to the plaintiff's father-in-law, for
other land is concocted one and the story of prior
oral partition is also not believable. According to
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him, the learned Trial Court has rightly not believed
the oral partition and has rightly passed the decree
in favour of the plaintiff-appellant. Learned advocate
has vehemently submitted that the First Appellate
Court has completely loss sight of this fact that there
is no evidence of any oral partition between the two
brothers regarding the disputed property. He has
also submitted that as per Section 122 of the
Transfer of Property Act, 1882, the deceased has
validly gifted the land in question in favour of the
plaintiff which is registered one. He has submitted
that even in case of gift deed, there is no need of
actual possession of immovable property given to
the donee. It is his submission that since it is
registered gift deed, there is no need of any actual
possession of property to be handed over to the
donee by the donor at the time of execution of gift
deed. He has submitted that the Appellate Court has
clearly misread the evidence on record and has
committed error of facts and law in reversing the
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decree passed in favour of the plaintiff and
dismissing the suit of the plaintiff. He has prayed to
allow the present appeal and set aside the impugned
order of the First Appellate Court and to restore the
decree of the Trial Court in favour of the plaintiff. He
has relied upon the decision of the Apex Court in
case of Renikuntla Rajamma (D) By Lrs. V/s K.
Sarwanamma reported in 2014 (9) SCC 445 for
his proposition regarding the gift deed, especially in
para nos. 6, 7, 8, 9, 10,11, 13 and 15 as under:-
"6. When the special leave petition came up
for preliminary hearing before a Division
bench of this Court, the only question which
was urged on behalf of the appellant was
whether retention of possession of the gifted
property for enjoyment by the donor during
her life time and the right to receive the
rents of the property in any way affected the
validity of the gift. That a gift deed was
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indeed executed by the donor in favour of
the donee and that the donee had accepted
the gift was not challenged and the finding
to that effect has not been assailed even
before us. So also the challenge to the gift on
the ground of fraud, misrepresentation and
undue influence, having been repelled by the
Courts below, the gift stands proved in all
material respects. All that was contended on
behalf of the appellant was that since the
donor had retained to herself the right to use
the property and to receive rents during her
life time, such a reservation or retention
rendered the gift invalid. A conditional gift
was not envisaged by the provisions of the
Transfer of Property Act, argued the learned
counsel of the appellant. Inasmuch as the
gift deed failed to transfer, title, possession
and the right to deal with the property in
absolute terms in favour of the donee the
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same was no gift in the eyes of law,
contended learned counsel for the appellant.
Reliance in support of that submission was
placed by the learned counsel upon the
decision of this Court in Naramadaben
Maganlal Thakker v. Pranjivandas Maganlal
Thakker and Ors. (1997) 2 SCC 255.
7. On behalf of the respondents it was per contra argued that the validity of the gift having been upheld by the Courts below, the only question that remains to be examined was whether a gift which reserved a life interest for the donor could be said to be invalid. That question was, according to the learned counsel, squarely answered in favour of the respondents by the decisions of this Court in K. Balakrishnan v. K. Kamalam & Ors. (2004) 1 SCC 581.
8. Reliance was also placed by the learned counsel upon Bhagwan Prasad & Anr. v. Harisingh AIR 1925 Nagpur 199, Revappa v.
Madhava Rao AIR 1960 Mysore 97 and Tirath Singh v. Manmohan AIR 1981 Punj. &
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Haryana 174 in support of the submission that transfer of possession was a condition under the Hindu Law for a valid gift which Rule of Hindu Law stood superseded by Section 123 of The Transfer of Property Act.
9. Chapter VII of the Transfer of Property Act, 1882 deals with gifts generally and, inter alia, provides for the mode of making gifts. Section 122 of the Act defines 'gift' as a transfer of certain existing movable or immovable property made voluntarily and without consideration by one person called the donor to another called the donee and accepted by or on behalf of the donee. In order to constitute a valid gift, acceptance must, according to this provision, be made during the life time of the donor and while he is still capable of giving. It stipulates that a gift is void if the donee dies before acceptance.
10. Section 123 regulates mode of making a gift and, inter alia, provides that a gift of immovable property must be effected by a registered instrument signed by or on behalf of the donor and attested by at least two
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witnesses. In the case of movable property, transfer either by a registered instrument signed as aforesaid or by delivery is valid under Section 123. Section 123 may at this stage be gainfully extracted:
"123. Transfer how effected - For the making of a gift of immoveable property, the transfer must be effected by a registered instrument signed by or on behalf of the donor, and attested by at least two witnesses.
For the purpose of making a gift of moveable property, the transfer may be effected either by a registered instrument signed as aforesaid or by delivery.
Such delivery may be made in the same way as goods sold may be delivered."
11. Sections 124 to 129 which are the remaining provisions that comprise Chapter VII deal with matters like gift of existing and future property, gift made to several persons of whom one does not accept, suspension and revocation of a gift, and onerous gifts
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including effect of non-acceptance by the donee of any obligation arising thereunder. These provisions do not concern us for the present. All that is important for the disposal of the case at hand is a careful reading of Section 123 (supra) which leaves no manner of doubt that a gift of immovable property can be made by a registered instrument singed by or on behalf of the donor and attested by at least two witnesses. When read with Section 122 of the Act, a gift made by a registered instrument duly signed by or on behalf of the donor and attested by at least two witnesses is valid, if the same is accepted by or on behalf of the donee. That such acceptance must be given during the life time of the donor and while he is still capable of giving is evident from a plain reading of Section 122 of the Act. A conjoint reading of Sections 122 and 123 of the Act makes it abundantly clear that "transfer of possession" of the property covered by the registered instrument of the gift duly signed by the donor and attested as required is not a sine qua non for the making of a valid gift under the provisions of Transfer of Property Act, 1882. Judicial pronouncements as to the
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true and correct interpretation of Section 123 of the T.P. Act have for a fairly long period held that Section 123 of the Act supersedes the rule of Hindu Law if there was any making delivery of possession an essential condition for the completion of a valid gift. A full bench comprising five Hon'ble Judges of the High Court of Allahabad has in Lallu Singh v. Gur Narain and Ors. AIR 1922 All. 467 referred to several such decisions in which the provisions of Section 123 have been interpreted to be overruling the Hindu Law requirement of delivery of possession as a condition for making of a valid gift. This is evident from the following passage from the above decision where the High Court repelled in no uncertain terms the contention that Section 123 of the T.P. Act merely added one more requirement of law namely attestation and registration of a gift deed to what was already enjoined by the Hindu Law and that Section 123 did not mean that where there was a registered instrument duly signed and attested, other requirements of Hindu Law stood dispensed with:
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"7. Dr. Katju, on behalf of the appellant, has strongly contended that by Section 123 it was merely intended to add one more requirement of law, namely, that of attestation and registration, to those enjoined by the Hindu Law, and that the Section did not mean that where there was a registered document duly signed and attested, all the other requirements of Hindu Law were dispensed with. Section 123 has, however, been interpreted by all the High Courts continuously for a vary long period in the way first indicated, and there is now a uniform consensus of opinion that the effect of Section 123 is to supersede the rule of Hindu Law, if there was any, for making the delivery of possession absolutely essential for the completion of the gift. We may only refer to a few cases for the sake of reference, Dharmodas v. Nistarini Dasi (1887) 14 Cal. 446, Ballbhadra v. Bhowani (1907) 34 Cal. 853, Alabi Koya v. Mussa Koya (1901) 24 Mad. 513, Mudhav Rao Moreshvar v. Kashi Bai (1909) 34 Bom. 287, Manbhari v. Naunidh (1881) 4 All. 40, Balmakund v. Bhagwandas (1894) 16 All.
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185, and Phulchand v. Lakkhu (1903) 25 All.
358. Where the terms of a Statute or Ordinance are clear, then even a long and uniform course of judicial interpretation of it may be overruled, if it is contrary to the clear meaning of the enactment but where such is not the case, then it is our duty to accept the interpretation so often and so long put upon the Statute by the Courts, and not to disturb those decisions, vide the remarks of their Lordships decisions, of the Privy Council in the case of Tricomdas Cooverji Bhoja v. Sri Sri Gopinath Thakur AIR 1916 P.C. 182. We are, therefore, clearly of opinion that it must now be accepted that the provisions of Section 123 do away with the necessity for the delivery of possession, even if it was required by the strict Hindu Law."
13. A plain reading of the above made it manifest that the "rules of Hindu law" and "Buddhist Law" were to remain unaffected by Chapter VII except to the extent such rules were in conflict with Section 123 of the Transfer of Property Act. This clearly implied
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that Section 123 had an overriding effect on the rules of Hindu Law pertaining to gift including the rule that required possession of the property gifted to be given to the donee. The decisions of the High Courts referred to in the passage extracted above have consistently taken the view that Section 123 supersedes the rules of Hindu law which may have required delivery of possession as an essential condition for the completion of a gift. The correctness of that statement of law cannot be questioned. The language employed in Section 129 before its amendment was clear enough to give Section 123 an overriding effect vis-a-vis rules of Hindu Law. Section 129 was amended by Act No. 20 of 1929 whereby the words "or, save as provided by Section 123, any rule of Hindu or Buddhist Law" have been deleted. Section 129 of the T.P. Act today reads as under:
"129. Saving of donations mortis causa and Muhammadan Law - Nothing in this Chapter relates to gifts of moveable property made in contemplation of death, or shall be deemed to affect any rule of Muhammadan law."
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15. The matter can be viewed from yet
another angle. Section 123 of the T.P. Act is
in two parts. The first part deals with gifts of
immovable property while the second part
deals with gifts of movable property. Insofar
as the gifts of immovable property are
concerned, Section 123 makes transfer by a
registered instrument mandatory. This is
evident from the use of word "transfer must
be effected" used by Parliament in so far as
immovable property is concerned. In
contradiction to that requirement the second
part of Section 123 dealing with gifts of
movable property, simply requires that gift of
movable property may be effected either by a
registered instrument signed as aforesaid or
"by delivery". The difference in the two
provisions lies in the fact that in so far as the
transfer of movable property by way of gift is
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concerned the same can be effected by a
registered instrument or by delivery. Such
transfer in the case of immovable property
no doubt requires a registered instrument
but the provision does not make delivery of
possession of the immovable property gifted
as an additional requirement for the gift to
be valid and effective. If the intention of the
legislature was to make delivery of
possession of the property gifted also as a
condition precedent for a valid gift, the
provision could and indeed would have
specifically said so. Absence of any such
requirement can only lead us to the
conclusion that delivery of possession is not
an essential prerequisite for the making of a
valid gift in the case of immovable property."
13. Per contra, learned advocate Mr.Patel for the
respondent-defendant has supported the impugned
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judgment of the Appellate Court and has submitted
that the partition deed at exhibit 62 dated
08.12.1975, has not been challenged by the plaintiff
in any manner. He has submitted that the family
arrangement was already made in the year 1975 i.e.
prior to the alleged gift deed. He has also submitted
that the notice issued by the plaintiff has already
been replied by the defendant in the year 1979. He
has also submitted that even in the year 1981, the
panchayat has permitted construction over the land
to the defendant and it was never objected by the
plaintiff. He has also stated that even in the year
1981, there was a construction made of three storey
building and this was erected with the permission of
panchayat. He has also submitted that thereafter
suit came to be filed in the year 1984 without
challenging the family arrangement made in the
year 1975. He has submitted that since there was
already family arrangement made in the year 1975,
now the plaintiff cannot claim any one half share in
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the property. He has submitted that the plaintiff is
relying upon the gift deed of 1979 whereas the
entire land was in possession of the defendants and
on that basis, he has got the necessary permission of
construction in the year 1981 and the construction
was made therein by the defendants. He has also
submitted that father-in-law of the plaintiff was
never in possession of the land no.214 after the oral
partition in the year 1975. He has submitted that the
earlier decision relied upon by the learned advocate
Mr.Prajapati of (2014) 9 SCC 445 has been recently
considered by the Hon'ble Apex Court in the
decision reported in (2021) 3 SCC 459 and earlier
decision has not been endorsed by the Apex Court in
the recent decisions. Learned advocate Mr.Prajapati
has also relied upon the decision reported in (2020)
9 SCC 706. He has prayed to dismiss the appeal and
has submitted that the judgment of the Trial Court
was perverse one and therefore the First Appellate
Court has rightly passed the impugned order
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allowing the appeal of the defendant respondent and
dismissed the suit of the plaintiff.
14. In rejoinder, Mr.Prajapati has submitted that
the as there was joint possession of both, there is no
need of seeking any possession at the relevant point
of time. He has prayed to allow the present appeal.
(i) The Apex Court in case of Ravinder Kaur
Grewal And Others Vs. Manjit Kaur and Others
reported in (2020) 9 SCC 706 in para 25, 26, 28
and 30 held as under:-
"25. Be that as it may, the High Court has
clearly misapplied the dictum in the relied upon
decisions. The settled legal position is that
when by virtue of a family settlement or
arrangement, members of a family descending
from a common ancestor or a near relation
seek to sink their differences and disputes,
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settle and resolve their conflicting claims or
disputed titles once and for all in order to buy
peace of mind and bring about complete
harmony and goodwill in the family, such
arrangement ought to be governed by a special
equity peculiar to them and would be enforced
if honestly made. The object of such
arrangement is to protect the family from long
drawn litigation or perpetual strives which mar
the unity and solidarity of the family and create
hatred and bad blood between the various
members of the family, as observed in Kale
(supra). In the said reported decision, a three-
judge Bench of this Court had observed thus:-
"9. ..... A family arrangement by which the property is equitably divided between the various contenders so as to achieve an equal distribution of wealth instead of concentrating the same in the hands of a few is undoubtedly a milestone in the administration of social justice.
That is why the term "family" has to be
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understood in a wider sense so as to include within its fold not only close relations or legal heirs but even those persons who may have some sort of antecedent title, a semblance of a claim or even if they have a spes successionis so that future disputes are sealed for ever and the family instead of fighting claims inter se and wasting time, money and energy on such fruitless or futile litigation is able to devote its attention to more constructive work in the larger interest of the country. The courts have, therefore, leaned in favour of upholding a family arrangement instead of disturbing the same on technical or trivial grounds. Where the courts find that the family arrangement suffers from a legal lacuna or a formal defect the rule of estoppel is pressed into service and is applied to shut out plea of the person who being a party to family arrangement seeks to unsettle a settled dispute and claims to revoke the family arrangement under which he has himself enjoyed some material benefits. ....."
26. In para 10 of the said decision, the Court has delineated the contours of essentials of a family settlement as follows:- "10. In other words to put the binding effect and the
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essentials of a family settlement in a concretised form, the matter may be reduced into the form of the following propositions: "(1) The family settlement must be a bona fide one so as to resolve family disputes and rival claims by a fair and equitable division or allotment of properties between the various members of the family;
(2) The said settlement must be voluntary and should not be induced by fraud, coercion or undue influence;
(3) The family arrangement may be even oral in which case no registration is necessary; (4) It is wellsettled that registration would be necessary only if the terms of the family arrangement are reduced into writing. Here also, a distinction should be made between a document containing the terms and recitals of a family arrangement made under the document and a mere memorandum prepared after the family arrangement had already been made either for the purpose of the record or for information of the court for making necessary mutation. In such a case the memorandum itself does not create or extinguish any rights in immovable properties and therefore does not fall within the mischief of Section 17(2)of the Registration Act and is, therefore, not compulsorily registrable;
(5) The members who may be parties to the family arrangement must have some antecedent title, claim or interest even a possible claim in the property which is acknowledged by the parties to the settlement. Even if one of the parties to the settlement has no title but under the arrangement the other party relinquishes all its claims or titles in
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favour of such a person and acknowledges him to be the sole owner, then the antecedent title must be assumed and the family arrangement will be upheld and the courts will find no difficulty in giving assent to the same; (6) Even if bona fide disputes, present or possible, which may not involve legal claims are settled by a bona fide family arrangement which is fair and equitable the family arrangement is final and binding on the parties to the settlement."
28. While rejecting the argument regarding inapplicability of principle of estoppel, the Court observed as follows: -
"38. ... Assuming, however, that the said document was compulsorily registrable the courts have generally held that a family arrangement being binding on the parties to it would operate as an estoppel by preventing the parties after having taken advantage under the arrangement to resile from the same or try to revoke it."
And in paragraph 42, the Court observed as follows:-
42. ..... In these circumstances there can be no doubt that even if the family settlement was not registered it would operate as a complete
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estoppel against Respondents Nos. 4 and 5. Respondent No. 1 as also the High Court, therefore, committed substantial error of law in not giving effect to the doctrine of estoppel as spelt out by this Court in so many cases."
30. A priori, we have no hesitation in affirming
the conclusion reached by the first appellate
Court that the document Exhibit P6 was
nothing but a memorandum of a family
settlement. The established facts and
circumstances clearly establish that a family
settlement was arrived at in 1970 and also
acted upon by the concerned parties. That
finding of fact recorded by the first appellate
Court being unexceptionable, it must follow
that the document Exhibit P6 was merely a
memorandum of a family settlement so arrived
at. Resultantly, it was not required to be
registered and in any case, keeping in mind the
settled legal position, the contesting
defendants were estopped from resiling from
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the stated arrangement in the subject
memorandum, which had recorded the
settlement terms arrived at in the past and
even acted upon relating to all the existing or
future disputes qua the subject property
amongst the (signatories) family members
despite absence of antecedent title to the
concerned property."
(ii) The Apex Court in case of Daulat Singh (Dead)
through Legal Representatives Vs. State of
Rajasthan And Others reported in (2021) 3 SCC
459, in para 24, 25, 26 AND 30 has held as under:-
"24. At the outset, it ought to be noted that
Section 122 of the Transfer of Property Act,
1882 neither defines acceptance, nor does it
prescribe any particular mode for accepting the
gift. The word "acceptance" is defined as "is
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the receipt of a thing offered by another with
an intention to retain it, as acceptance of a
gift." (See Ramanatha P. Aiyar: The Law
Lexicon, 2nd Edn., page 19).
25. The aforesaid fact can be ascertained from the surrounding circumstances such as taking into possession the property by the donee or by being in the possession of the gift deed itself. The only requirement stipulated here is that, the acceptance of the gift must be effectuated within the lifetime of the donor itself.
26. Hence, being an act of receiving willingly, acceptance can be inferred by the implied conduct of the donee. The aforesaid position has been reiterated by this Court in the case of Asokan v. Lakshmikutty, (2007) 13 SCC 210
14. Gifts do not contemplate payment of any consideration or compensation. It is, however, beyond any doubt or dispute that in order to constitute a valid gift acceptance thereof is essential. We must,
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however, notice that the Transfer of Property Act does not prescribe any particular mode of acceptance. It is the circumstances attending to the transaction which may be relevant for determining the question. There may be various means to prove acceptance of a gift. The document may be handed over to a donee, which in a given situation may also amount to a valid acceptance. The fact that possession had been given to the donee also raises a presumption of acceptance.
30. Therefore, the abovementioned
circumstances clearly indicate that there was
an acceptance of the gift by the donee during
the lifetime of the donor. Not only the gift deed
in itself contained recitals about transfer of
possession, but also the mutation records and
the statements of the both the donor and donee
indicate that, there has been an acceptance of
the gift by conduct."
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15. Having considered the submissions made on
behalf of both the sides coupled with the material
placed on record and the decisions cited at bar. It is
found that there is no dispute of relationship
between the parties. There is also no dispute
regarding the factum of two properties being 185
and 214 of gabhan land. The dispute is revolving
upon the facts as to whether there was prior oral
partition between the parties in respect of the
properties between the father-in-law of the plaintiffs
and defendants. If the factum of prior partition
between the parties are proved then there would be
no question of gift of property by the father-in-law to
the plaintiff subsequently.
16. In this regard, on perusal of the evidence on
record it transpires that the plaintiff herself has not
come into the witness box, in her behalf one
Harmanbhai Chaturbhai and Chandubhai Asavbhai
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have been examined. On perusal of the evidence of
Ishwar Mohan at exhibit 53 reveals that he has
admitted that his wife-plaintiff is mentally sick and
suffering from hysteria since last 10 years.
According to this witness, his wife was admitted in
the mental hospital at Baroda as well as Surat also.
However, he has stated that at the time of filing of
the suit she was not lunatic on the date of filing of
the suit. However, whether the plaintiff was lunatic
or not is not a question to be decided in the present
appeal as the question posed for determination in
this appeal is regarding the consideration and
interpreted the gift deed at exhibit 55 as well as
deed of partition at exhibit 62.
17. In this regard, it reveals from the record that
the case of the plaintiff is that her father-in-law
Mohanbhai and predecessor of Chaturbhai were
having equal share in the property known as gabhan
no.214 admeasuring 748 squareyards situated at
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village Vagra. Against this, the stand of the
defendant is that gabhan no.214 came to the share
of the deceased defendant after partition. In this
regard, on perusal of the evidence of Harman
Chaturbhai at exhibit 67, reveals that the original
owner of the suit gabhan was Amidas Kalidas who
was having two sons Monahbhai and Chaturbhai
admittedly, Mohanbhai was father-in-law of the
plaintiff while Chaturbhai was the predecessor of the
defendants. Witness has also stated that
subsequently partition was to be placed between the
two brothers Mohan and Chaturbhai in the year
1975 to substantiate this stand, the partition deed
has been produced at exhibit 62. It is on the plain
paper. It appears that it is a family arrangement.
This document shows that there were some clauses
subsequent to the partition and further
arrangements were made pertaining to
unpartitioned properties. This family arrangement
took place on 08.12.1975, the same has been singed
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by the deceased Chaturbhai as well as the plaintiff
along with the attesting witness. Even the evidence
of Ishwar Mohanbhai at exhibit 53 reveals that the
said gabhan was partitioned between 1975 and
therefore it was not referred to in exhibit 62.
18. It also appears from the record that the plaintiff
has heavily relied upon the gift deed at exhibit 55,
which is made by the father-in-law of the plaintiff in
favour of the plaintiff. This gift deed is dated
14.05.1979. Now, it appears from exhibit 73 that the
gram panchayat allowed the deceased Chaturbhai to
construct the house in his own property on
06.01.1981 and exhibit 75 is a certificate to that
effect and it is in the name of Kashiben Chaturbhai
and others. It also reveals from the exhibit 72 that
Mr.Chaturbhai sought permission to construct a new
house on 04.12.1980.
19. On perusal of the exhibit 62, it clearly reveals
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that it was a family arrangement only for the
properties which remained unpartitioned between
the parties. Under these circumstances, there might
be earlier oral partition between the parties before
the date of this document i.e. 08.12.1975. As
observed hereinabove, even the plaintiff witness at
exhibit 53 has admitted in his cross-examination that
the suit gabhan was partitioned prior to the year
1975. Thus, when the alleged gift deed at exhibit 5,
which was executed on 14.05.1979, there was no
any proprietory right pertaining to the suit gabhan
in favour of the father-in-law of the plaintiff. Under
these circumstances, on conjoint reading of both the
documents coupled with the admission on the part of
the plaintiff witness, it clearly transpires that when
the alleged gift deed came to be executed by the
father-in-law, exhibit 55 dated 14.05.1979, in favour
of the plaintiff, in reality he had no any right title
over the suit gabhan land as prior to that there was
a partition of the property.
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20. It is the stand of the plaintiff that by the virtue
of gift deed, she was in possession of the suit gabhan
and has one half share thereof. Even, if the legal
aspects that there is no need of handing over of the
property where the registered gift deed is executed
in favour of the donee is accepted, the facts and
circumstances of this Case, clearly reveals that even
on the date of execution of such gift deed, deceased
Mohanbhai was not having any right title or even
possession of the suit gabhan land. Had really, the
plaintiff was in possession of the suit gabhan on the
basis of the gift deed as alleged by her, when the
panchayat granted permission of construction of
house in favour of deceased Chaturbhai, she would
have definitely objected to, and have taken recourse
thereof. However, no such sought of thing has
happened in the matter. It appears from the records
that the defendant is in possession of the land in
question and has also constructed a house over it.
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21. On perusal of the entire material placed on
record and the impugned judgment of the Appellate
Court, it clearly transpires that the Appellate Court
has not committed any error of facts and law in
interpreting the documents of gift deed at exhibit 55
as well as family arrangement deed at exhibit 62.
The Appearance Court has properly considered the
entire facts and circumstances of the case and has
properly passed the impugned judgment and decree
and has rightly dismissed the suit of the plaintiff as
the donor i.e. father-in-law of the plaintiff had no
right title or interest in the property at the time of
executing gift deed in favour of the plaintiff.
22. Therefore, in view of the above discussions, my
answer to the substantial question posed in para 9
above is in negative.
23. In view of the above discussions, I pass the
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following final order in the interest of justice.
ORDER
(i) The present Second Appeal stands dismissed.
(ii) Parties are directed to bear respective cost of
this appeal.
(iii) Decree to be drawn accordingly in this
appeal.
(iv) Along with the copy of this judgment and
decree, Records and Proceedings be sent back to
the Trial Court.
(DR. A. P. THAKER, J) URIL RANA
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