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  • B1. S. 126 of the Transfer of Property Act
  • S. 126 of the Transfer of Property Act,
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  • B1. S. 126 of the Transfer of Property Act
  • S. 126 of the Transfer of Property Act,
Smart Summary

Factual and Procedural Background

Arumuga Asari, the owner of the suit property, initially donated it to Kamalakshmi Ammal, his sister-in-law and the plaintiff's mother-in-law, by deed dated 22nd April 1970 (Ex. A1). He subsequently revoked this deed on 24th August 1973 (Ex. B1) and on the same day executed another deed of donation (Ex. A3) in favour of the defendants, who took possession of the property. The plaintiff filed suit challenging the validity of the donation deed dated 24th August 1973 (Ex. A3), alleging it was obtained by coercion and seeking recovery of possession of the property portion occupied by the defendants.

The trial court found that Ex. A3 was not executed under coercion but decreed the suit on the ground that the original gift deed in favour of Kamalakshmi Ammal could not be revoked. The appellate court upheld this decree and dismissed the defendants' appeal. The matter proceeded to this Court by way of a second appeal.

Legal Issues Presented

  1. Whether the revocation of the gift is valid?
  2. Whether the deed of donation dated 24th August 1973 was obtained by coercion and fraud and therefore invalid?

Arguments of the Parties

Defendants' Arguments

  • Ex. A3 was executed voluntarily by the donor and was not obtained by coercion or undue influence.
  • Arumuga Asari initially donated the property to Kamalakshmi Ammal hoping she would maintain him, but revoked the gift as she failed to do so.

Plaintiff's Arguments

  • The deed of donation dated 24th August 1973 (Ex. A3) is null and void as it was obtained by coercion.
  • Claims for recovery of possession of the property portion occupied by the defendants.

Table of Precedents Cited

Precedent Rule or Principle Cited For Application by the Court
Villers v. Beaumont, 1962-1 Vern. 101 Principle that a gift revocable at the mere will of the donor is no gift at all. The Court relied on this precedent to emphasize that a gift cannot be revoked at the donor's pleasure and that a voluntary gift without a reserved power of revocation is binding.

Court's Reasoning and Analysis

The Court analyzed the validity of the revocation under Section 126 of the Transfer of Property Act, which permits revocation only under specific conditions agreed upon by donor and donee, involving a specified event not dependent on the donor's will. The Court noted that Ex. A1, the original gift deed, contained no such condition and that the donor revoked the gift at his pleasure, which is impermissible under the law.

The Court found no evidence that the subsequent donation deed (Ex. A3) was obtained by coercion, fraud, or undue influence, aligning with the trial court’s findings. The four essential conditions for a valid revocation under Section 126 were not satisfied in this case.

Invoking the principle from Villers v. Beaumont, the Court held that a voluntary gift cannot be revoked at the donor's whim, as that would render the gift void. Consequently, the revocation deed (Ex. B1) was invalid.

Holding and Implications

The second appeal is dismissed.

The Court held that the gift deed Ex. A1 could not be revoked at the donor’s pleasure since it lacked any valid condition subsequent as required under Section 126 of the Transfer of Property Act. There was also no evidence of coercion or fraud in the execution of Ex. A3. The decision means that the revocation deed Ex. B1 is invalid, and the original gift stands. No new precedent was established beyond the application of existing legal principles to the facts of this case.

    Jayalakshmi And Others v. Kaliaperumal

    1. The defendants are the appellants. One Arumuga Asari, owner of the suit property, donated it to Kamalakshmi Ammal, his sister-in-law who is also the mother-in-law of the plaintiff under Ex. A1 on 22nd April, 1970, He revoked that deed under Ex. B1 on 24th August, 1973. On the same day he executed another deed of donation under Ex. A3, in favour of the defendants. The defendants have taken possession of the suit property. The plaintiff, in whose favour Kamalakshmi Ammal has executed the gift deed, has filed the suit on the ground that the deed of donation dated 24th August, 1973 under Ex. A3 is null and void and that it was obtained by coercion and for recovery of possession of that portion of the property occupied by the defendants.

    2. The first defendant in her answer stated that Ex. A3 was not obtained by coercion or under undue influence but was executed voluntarily by the donor, that Arumuga Asari donated the property in favour of Kamalakshi in the hope that she will maintain him, but as she has failed to maintain him he has cancelled the deed.

    3. The trial Court found that Ex. A3 was not executed under coercion, but however decreed the suit of the plaintiff on the ground that Arumuga Asari cannot revoke the gift deed in favour of Kamalakshi. The appellate Court confirmed that decree and dismissed the appeal.

    4. A learned Judge of this Court while admitting the second appeal has formulated the following substantial questions of law:

    1. Whether the revocation of the gift is valid?

    2. Whether the deed of donation, dated 24th August, 1973 was obtained by coercion and fraud and therefore invalid?

    5. The second point of law framed by the learned Judge need not detain us any longer in view of the finding of the trial court that Ex. A3 was not obtained by coercion. The appellate Judge does not deal with this point. But, however, there is absolutely no evidence to show that Ex. A3 was executed under coercion or undue influence. In fact P.W 1 does not anywhere say that Ex. A3 was obtained by coercion or by fraud or by undue influence. In the circumstances, the trial Court was correct in coming to the conclusion that Ex. A3 was not obtained by undue influence, coercion or fraud. That disposes of the second question of law.

    6. The deed of gift was cancelled under Ex. B1. S. 126 of the Transfer of Property Act deals with the question of revocation or suspension of the gift. It reads that the donor and the donee may agree that on the happening of any specified event which does not depend on the will of the donor, a gift shall be suspended or revoked The latter part of S. 126 says that a gift which the parties agree shall be revocable wholly or in part at the mere will of the donor is void wholly or in part, as the case may be. The second part of S. 126 says that a gift may also be revoked in any of the cases (save want or failure of consideration) in which, if it were a contract it, might be rescinded. Then follows the more important clause ‘save as aforesaid, a gift cannot be revoked’. That will show that except in the circumstances mentioned in S. 126 of the Transfer of Properly Act, a gift cannot be revoked. A gift may be revoked as if it were a contract, but not on the ground of want of consideration or failure of consideration. A gift may be revoked for coercion, fraud or misrepresentation or undue influence in the same way as a contract may be rescinded. It has already been pointed out that Ex. A3 was not obtained under coercion. The four essential conditions for revocation under S. 126 are:—

    “1. that the donor and the donee must have agreed that the gift shall be suspended or revoked on the happening of a specified event;

    2. such event must be one which does not depend upon the donor's will;

    3. the donor and the donee must have agreed to the condition at the time of accepting the gift;

    4. the condition should not be illegal or immoral and should not be repugnant to the estate created under the gift.”

    In the present case, in Ex. A1 no condition is stipulated. The cancellation deed, Ex. B1, mentions that the donor had the fond hope that Kamalakshi Ammal will maintain him, but he was disillusioned with that hope and that he is therefore revoking the deed Ex. A1 does not contain any condition that Kamalakshi should maintain the donor. It is therefore clear that the donor has revoked the gift under Ex. A1 at his pleasure. As already pointed out, a gift may be revocable by being subject to a condition subsequent, but the condition cannot depend upon the will of the donor, for, a gift revocable at pleasure is no gift at all. In this connection, the observations of Lord Nottingham in the case of Villers v. Beaumont . 1962-1 Vern. 101., which are apt may be extracted:

    “If a man will improvidently bind himself up by a voluntary deed and not reserve a liberty to himself by a power of revocation, this Court will not loose the fetters he hath put upon himself, but he must lie down under his own folly, for, if you would relieve in such a case, you must consequently establish this proposition, namely, that a man can make no voluntary disposition of his estate, but by his wilt only, which would be absurd.”

    It is therefore clear that except in the circumstances mentioned in S. 126 of the Transfer of Property Act, a gift cannot be revoked. Such circumstances having not been made out, the gift under Ex. A1 cannot be revoked. The result is the second appeal fails and is dismissed, but without costs.
    VCS.

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    Comments

    Jayalakshmi And Others v. Kaliaperumal
    (Sep 19, 1984)