Accepted gift deed and possession transferred: revocation is barred absent reserved power, and limitation follows possessory relief.

A registered gift deed that is expressly accepted by the donee, followed by mutation and taking of possession, operates as an absolute transfer when no power of revocation is reserved. Revocation is permissible only within the limited contingencies in Section 126 of the Transfer of Property Act, 1882, and mere non-use of the gifted property does not create a right to revoke. In a suit seeking declaration of title with recovery of possession, limitation is assessed by the substantive relief claimed: the possessory claim is governed by Article 65 of the Limitation Act, 1963, so it is not barred merely because the suit was filed after the alleged revocation.

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Issues: (i) Whether the registered gift deed was duly accepted and acted upon so as to confer absolute title on the donee and whether the donor could revoke it in the absence of any reserved right of revocation; (ii) Whether the suit for declaration of title and recovery of possession was barred by limitation.

Issue (i): Whether the registered gift deed was duly accepted and acted upon so as to confer absolute title on the donee and whether the donor could revoke it in the absence of any reserved right of revocation.

Analysis: The gift deed expressly recorded acceptance by the donee from the date of the gift, the property was mutated in the donee's favour, and possession was taken over and acted upon. The deed was found to be an absolute gift with no clause reserving any power of revocation. Under Section 126 of the Transfer of Property Act, 1882, a gift can be revoked only within the limited contingencies recognised by that provision, none of which was attracted. Mere non-use of the property for the stated purpose did not create a right of revocation.

Conclusion: The gift deed was validly accepted, acted upon and could not be revoked; the revocation deed was void and of no effect.

Issue (ii): Whether the suit for declaration of title and recovery of possession was barred by limitation.

Analysis: Once the gift was held valid and irrevocable, the revocation deed could not be treated as the starting point for limitation. A declaration of title ordinarily falls within Article 58 of the Limitation Act, 1963, but where the suit also seeks recovery of possession based on title, Article 65 governs the possessory relief. The possession claim was therefore not barred merely because the suit was instituted more than three years after the alleged revocation.

Conclusion: The suit was not barred by limitation.

Final Conclusion: The decree in favour of the plaintiff was upheld and the appeal failed on both the validity of revocation and the plea of limitation.

Ratio Decidendi: A gift deed that is expressly accepted and acted upon, and that contains no reserved power of revocation, cannot be revoked except within the limited grounds specified in Section 126 of the Transfer of Property Act, 1882; where a suit for declaration is coupled with recovery of possession based on title, limitation is determined by the substantive possessory relief.

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