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Narayani Bhanumathi & Anr. v. Karthyayani Lelitha Bhai

Kerala High Court
Oct 30, 1972
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Factual and Procedural Background

The dispute arises from a settlement deed dated 1-6-1963 (ex. P1) executed by defendants 2 and 3 in favor of the plaintiff and the 4th defendant. Defendants 2 and 3 are the parents of the 4th defendant, who is said to have married the plaintiff. The 4th defendant contests the marriage's validity, alleging the plaintiff had a living husband at the time. The settlement deed was premised on the plaintiff and the 4th defendant living or intending to live as husband and wife, and it is said the plaintiff bore a child by the 4th defendant. Subsequently, the 4th defendant left the plaintiff, and defendants 2 and 3 allegedly executed a new settlement deed in favor of the 1st defendant, purportedly disregarding the earlier settlement. This led to the suit concerning the validity and acceptance of the original settlement deed.

The legal question centers on whether the original settlement deed (ex. P1) was accepted by the plaintiff and the 4th defendant. The defendants argue that the deed was not accepted and was effectively revoked by a subsequent deed dated 25-7-1964 in favor of the 1st defendant. The suit challenges the validity of this later deed given the earlier gift.

Legal Issues Presented

  1. Whether the settlement deed dated 1-6-1963 (ex. P1) executed by defendants 2 and 3 in favor of the plaintiff and the 4th defendant was accepted by the plaintiff and the 4th defendant.
  2. Whether the subsequent settlement deed dated 25-7-1964 revoking the earlier deed is valid in the absence of acceptance of the original deed.
  3. The implications of acceptance or non-acceptance of a gift deed on the rights of the parties involved.

Arguments of the Parties

Defendants' Arguments

  • The original settlement deed (ex. P1) was not accepted by the plaintiff and the 4th defendant.
  • Because of non-acceptance, the subsequent settlement deed dated 25-7-1964 in favor of the 1st defendant effectively revoked the earlier deed.
  • The 4th defendant did not fulfill assurances made at the time of the original deed, justifying its cancellation.

Plaintiff's Position

  • The plaintiff was aware of and accepted the original settlement deed, as indicated during cross-examination.
  • The plaintiff's father was taken to the sub-registry office for execution, and the 4th defendant's consent was obtained, evidencing acceptance.
  • The arrangement was integral to the marital relations between the plaintiff and the 4th defendant, implying acceptance of the gift deed.

Table of Precedents Cited

No precedents were cited in the provided opinion.

Court's Reasoning and Analysis

The court analyzed the acceptance of the gift deed (ex. P1) by examining the circumstances surrounding its execution and subsequent conduct of the parties. It emphasized that acceptance of a gift deed is generally presumed when the donee knows of the gift, especially where the gift is not onerous. The court noted that the interval of over a year between the two settlement deeds and the reasons given for the second deed (non-fulfillment of assurances by the 4th defendant) imply that the earlier deed was accepted rather than rejected.

The plaintiff’s awareness of the gift deed and the evidence from cross-examination, including the plaintiff’s father’s involvement and the 4th defendant’s consent, supported the inference of acceptance. The court held that the arrangement related to the marital relationship and was sufficient to establish acceptance of the gift deed. Consequently, the subsequent settlement deed attempting to revoke the original deed could not bind the plaintiff or affect her rights.

However, the court found that the decree of the lower court went beyond the findings by granting the plaintiff possession rights prematurely, as the right to possession would only arise after the death of the surviving donor (the 3rd defendant). Therefore, the decree required modification accordingly.

Holding and Implications

The second appeal was DISMISSED except for the modification that no decree for recovery of possession is granted at this stage. The plaintiff’s right to recover possession will arise only upon the death of the surviving donor, the 3rd defendant. The plaintiff is entitled to a declaration of rights under the original settlement deed (ex. P1), and the subsequent settlement deed (ex. D2) will not affect those rights.

Both parties were directed to bear their respective costs. The decision does not establish any new precedent but clarifies the application of acceptance principles in the context of gift deeds and their revocation.

Show all summary ...

1. There is only a short question for decision in this second appeal and that concerns whether ex. P1 settlement deed dated 1 - 6 - 1963 executed by defendants 2 and 3 in favour of the plaintiff and 4th defendant has been accepted by the plaintiff. Defendants 2 and 3 are the parents of the 4th defendant who is said to have married the plaintiff. Apparently ex. P - 1 settlement deed refers to the plaintiff as wife of the 4th defendant though 4th defendant disputes the factum of the marriage and the validity of the marriage because, According to the 4th defendant, Plaintiff had a husband living on the date of the alleged marriage. Whatever that be, It is clear that the settlement deed ext. P - 1 was executed on the basis that the plaintiff and the 4th defendant were living or proposing to live as husband and wife. It is said that the plaintiff has a child by the 4th defendant. The 4th defendant apparently left the plaintiff later in search of pastures new. Thereafter, Defendants 2 and 3 are said to have been persuaded to ignore the settlement already effected and to execute a new settlement deed in favour of the 1st defendant, The daughter, And that is said to be the provocation for the suit.

2. That the settlement deed of 1964 in favour of the 1st defendant would not stand in case property had been already gifted admits of no doubt. No vitiating circumstance is pleaded in regard to ex. P - 1. But it is said that though it was executed it was not accepted by the plaintiff and the 4th defendant, So much so, That when a new settlement deed was executed, Ex. P - 1 stood revoked. That is how the question of acceptance of ex. P - 1 becomes relevant.

3. Between the date of ext. P - 1 and subsequent settlement deed dated 25 - 7 - 1964, There was an interval of more than one year. When the fresh settlement deed was executed, The reason shown for its execution was that the 4th defendant did not look after defendants 2 and 3 as assured to them earlier when executing ex. P - 1, And therefore the document was being cancelled. Apart from the fact that at the earliest point of time when they could have said that there was no acceptance of the settlement if that was the truth, They did not do so what is more important is that the statement in the fresh settlement deed ex. D - 2 goes to negative a case of absence of consent. If the earlier settlement deed was executed on an assurance that defendants 2 and 3 will be looked after, That presupposes the knowledge of the gift by the donees and an understanding reached between them at the time of execution of the settlement deed which could be sufficient to support the plea of acceptance especially when there is no question of the donee getting possession of properties since there was reservation of right to enjoy the property in the donors during their life time.

4. The evidence bearing on the question of acceptance of the gift deed will have to be appreciated in the background of the circumstance relating to the execution of such a deed. There may be cases where slightest evidence of such acceptance would be sufficient, There may be still cases where the circumstances themselves eloquently speak to such acceptance. Normally, When a person gifts properties to another and it is not an onerous gift, One may expect the other to accept such a gift when once it comes to his knowledge, Since normally, Any person would be only too willing to promote his own interests. May be in particular cases there may be peculiar circumstances which may show that the donee would not have accepted the gift. But these are rather the exceptions than the rule. It is only normal to assume that the donee would have accepted the gift deed. One would have to look into the circumstances of the case in order to see whether acceptance could be read. Mere silence may sometimes be indicative of acceptance provided it is shown that the donee knew about the gift. Essentially, This is a question of fact to be considered on the background of circumstances of each case.

5. In a case, Such as the one before me, Where the execution of the gift deed was apparently to satisfy the plaintiff and the 4th defendant, Who had either married or were intending to marry and the evidence indicates that the plaintiff and the 4th defendant were aware of this gift deed, One would not be wrong in assuming that the gift would have been accepted by them. It is true that while the one and rather the only question in the case is of acceptance of the gift and therefore plaintiff as pw. 1 has, In the box, To swear about it when she was examined by her counsel she has failed even to advert to it. Possibly, If the matter was left there, Plaintiff could have had a bad time in attempting to support her case. Counsel for the defence has obliged the plaintiff by a rather elaborate cross - examination on acceptance and brought out that the plaintiff had accepted the gift deed. In fact, The cross - examination offered occasion for the plaintiff to say that her father had been taken to the sub - registry office for the purpose of execution of the settlement deed and that the 4th defendant's consent also was taken. The fattier is apparently as attestor of ext. P - 1. These circumstances are more than sufficient to show that the plaintiff was aware of the gift when it was executed and possibly she submitted herself to the 4th defendant on the faith that she was going to get the suit property as one of the donees after the life time of defendants 2 and 3. It would appear that this arrangement was an integral part of the arrangement reached between plaintiff and 4th defendant in regard to the proposed marital relations. This would be sufficient to spell out acceptance of the gift deed. Once that is so found, I have necessarily to declare the right of the plaintiff under ext. P - 1 gift and to hold that ex. D - 2 executed as if ex. P - 1 gift had not come into effect or was not valid will not bind the plaintiff or her rights in the suit property.

6. The court below has, By decreeing the suit in terms of the plaint, Gone far beyond what would be justified by the findings which i have entered here. There is a prayer in the plaint that in case the 1st defendant gets possession, Plaintiff must be given a decree for possession. Whether 1st defendant is in possession or not is immaterial. The right to come into possession will arise only after the death of the 3rd defendant. Therefore, The plaintiff will have no cause of action for recovery until after the death of the 3rd defendant. To that extent, The decree of the court requires modification.

in the result, The second appeal is dismissed except in regard to the modification that there will be no decree for recovery in this suit. The right of the plaintiff for recovery will arise only on the death of the surviving donor, Namely, The 3rd defendant. Plaintiff will have to be satisfied with such a declaration. In the circumstances of the case, I direct both parties to suffer costs.