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Issues: Whether, in the case of a registered deed of gift reciting delivery of possession and acceptance by the donee, acceptance can be inferred from the recitals and surrounding circumstances, whether the donor can rely on contrary oral evidence to deny such acceptance, and whether a completed gift can be rescinded for subsequent conduct of the donee.
Analysis: A valid gift under Section 122 of the Transfer of Property Act, 1882 requires acceptance, but no particular mode of acceptance is prescribed. Acceptance may be inferred from the circumstances, including delivery of possession and the terms of a registered document. Where the deed itself recites that possession was handed over and accepted, a presumption arises in favour of the validity of the transaction, and the burden shifts heavily to the donor to prove the contrary. Sections 91 and 92 of the Indian Evidence Act, 1872 do not permit the donors, in the facts of such a transaction, to displace the clear recitals in the registered deeds by setting up a contrary case without adequate proof. The alleged subsequent failure of the donee to perform an asserted promise could not justify rescission of a valid gift, particularly in the absence of proof bringing the case within Section 16 of the Indian Contract Act, 1872.
Conclusion: The recitals in the registered gift deeds, coupled with the surrounding circumstances, were sufficient to establish acceptance and delivery of possession; the contrary findings of the appellate courts could not stand, and the cancellation deeds were unsustainable.
Ratio Decidendi: In a registered gift deed, a recital that possession has been delivered and the gift accepted raises a rebuttable presumption of acceptance, and once the gift is complete, it cannot be rescinded merely because the donor later disputes the transaction or the donee's subsequent conduct changes.