Gift acceptance must be proved by clear affirmative act before revocation; fraud evidence from immediate complaint was admissible.

Acceptance of a gift must be shown by a clear affirmative act by the donee during the donor's lifetime; it cannot be inferred from prior negotiations, execution or registration of the deed, or passive acquiescence. On the facts, the deed remained with the donor, possession was not delivered, and no reliable act of acceptance before revocation was proved, so the cancellation was valid in law. Evidence of the donor's immediate complaint after receiving the document was admissible as conduct on discovering the transaction, and the fraud plea was sufficiently supported by the cancellation deed and accepted evidence.

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Issues: (i) Whether the gift deed was accepted before its revocation so as to become irrevocable. (ii) Whether the evidence regarding the donor's immediate complaint after receipt of the document was admissible to support the plea of fraud and misrepresentation.

Issue (i): Whether the gift deed was accepted before its revocation so as to become irrevocable.

Analysis: Acceptance of a gift must be proved by some positive act showing assent after execution and before revocation. Mere antecedent discussions, the execution and registration of the deed, or passive acquiescence do not by themselves establish acceptance. In the present case, the deed remained with the donor, possession of the properties was not delivered to the donee, and there was no reliable evidence of any act by or on behalf of the donee showing acceptance before the deed of revocation.

Conclusion: The gift was not accepted before revocation, and the cancellation was valid in law.

Issue (ii): Whether the evidence regarding the donor's immediate complaint after receipt of the document was admissible to support the plea of fraud and misrepresentation.

Analysis: Statements made immediately after receipt of the document were relied upon not as substantive narration of a dead person's statement, but as evidence of the donor's conduct upon discovering the nature of the transaction. Such evidence was admissible. The plea of fraud was also sufficiently pleaded through the cancellation deed and supported by the evidence accepted by the trial court.

Conclusion: The evidence was admissible, and the objection to the fraud finding could not sustain the decree in favour of the plaintiff.

Final Conclusion: The second appeal succeeded, the decree of the lower appellate court was set aside, and the trial court's dismissal of the suit was restored with costs.

Ratio Decidendi: A gift becomes complete and irrevocable only when it is accepted by the donee through a clear affirmative act during the donor's lifetime, and acceptance cannot be inferred merely from prior negotiations, execution, registration, or passive presence.

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