1953 (3) TMI 49 - HC - Indian Laws

Court overturns decision, finding gift deed tainted by fraud, property reverts to original owner.

Chennupati Venkatasubbamma Versus Nelluri Narayanaswami

The High Court set aside the District Judge's decision and restored the Subordinate Judge's judgment. It was found that the gift deed was not accepted ... - Issues Involved:1. Declaration of title and permanent injunction.2. Validity of the gift deed.3. Allegations of fraud, undue influence, and misrepresentation.4. Acceptance of the gift deed before revocation.5. Validity of the deed of revocation.Issue-wise Detailed Analysis:1. Declaration of Title and Permanent InjunctionThe plaintiff sought a declaration of his title to the suit properties and a permanent injunction to restrain the defendants from interfering with his possession and enjoyment of the properties. The plaintiff based his title on a gift deed executed by Ramachandriah on 15-5-1930.2. Validity of the Gift DeedThe gift deed, Ex. S-6, dated 15-5-1930, purported to transfer properties to the plaintiff. However, the defendants contended that the deed was vitiated by fraud, undue influence, and misrepresentation. The trial court found that the gift deed was indeed vitiated by these factors and was not accepted before its revocation by Ramachandriah on 19-5-1930.3. Allegations of Fraud, Undue Influence, and MisrepresentationThe defendants argued that Ramachandriah was misled by Subbaiah, the plaintiff's father, into believing that the document was a will, not a gift deed. The trial court agreed, finding that the deed was executed under fraudulent circumstances. The appellate court, however, reversed this finding, deeming the evidence of fraud insufficient.4. Acceptance of the Gift Deed Before RevocationThe trial court concluded that the gift was not accepted before its revocation. The deed remained with the donor, and possession of the properties continued with Ramachandriah. The appellate court initially found that there was acceptance by the plaintiff's father, Subbaiah, but this was overturned on further scrutiny. The higher court emphasized that acceptance must be explicit and occur after the execution of the deed but before its revocation.5. Validity of the Deed of RevocationThe deed of revocation, Ex. B-8, dated 19-5-1930, was executed by Ramachandriah, citing that he was misled into executing the gift deed. The trial court upheld the revocation, finding that there was no acceptance of the gift before it was revoked. The appellate court initially disagreed but was ultimately overruled, reinstating the trial court's decision that the revocation was valid.Conclusion:The High Court set aside the decision of the District Judge and restored the judgment of the Subordinate Judge. The court found that the gift deed was not accepted by the donee before its revocation and was vitiated by fraud and misrepresentation. Consequently, the property continued to belong to Ramachandriah and, after his death, devolved upon his daughter, the first defendant. The plaintiff's suit was dismissed, and the costs were awarded to the appellant.