2024 (10) TMI 1329 - SC - Indian Laws

Suit for title declaration and possession recovery filed in 1991 not time-barred under Article 65

The SC held that a suit for declaration of title and recovery of possession filed in 1991 was not time-barred. The plaintiff's gift deed from 1983 was ... Validity and acceptance of a registered gift deed - effect of acting upon a gift (change of possession and mutation) on acceptance - revocation of gift and exceptions under Section 126 of the Transfer of Property Act - when a gift may be suspended or revoked - limitation for declaration with consequential relief for recovery of possession (Articles 58 and 65, Schedule to the Limitation Act, 1963) - ancillary nature of declaration where further relief is claimedValidity and acceptance of a registered gift deed - effect of acting upon a gift (change of possession and mutation) on acceptance - The registered gift deed dated 05.03.1983 was duly acted upon and accepted and conferred absolute right and title on the plaintiff-respondent. - HELD THAT: - The gift deed (Exhibit A-1) expressly states acceptance by the plaintiff-respondent from the date of the deed. Evidence including application for mutation and Exhibit A-4 demonstrating possession and construction establishes that the donee took possession and acted upon the gift. The courts below correctly found that acceptance and acting upon the gift precluded invalidity for want of acceptance and that the plaintiff-respondent thereby acquired absolute title. [Paras 6, 8, 9, 10]Gift deed was accepted and acted upon; plaintiff-respondent acquired absolute right and title.Revocation of gift and exceptions under Section 126 of the Transfer of Property Act - when a gift may be suspended or revoked - The revocation deed dated 17.08.1987 is void and ineffective because none of the contingencies in Section 126 permitting suspension or revocation are attracted. - HELD THAT: - Section 126 permits revocation only in specified contingencies: (i) agreement between donor and donee for suspension or revocation on happening of an event not dependent on donor's will; (ii) where parties agree the gift is revocable at donor's mere will (which renders it void); and (iii) where the gift is in the nature of a contract capable of rescission. The gift deed contains no reservation of a right to revoke nor any agreed condition permitting revocation. Non-use of the property for the stated purpose does not, in absence of a stipulation, amount to a contingency permitting revocation. Thus the purported revocation is void ab initio and must be ignored. [Paras 12, 14, 15, 16]Revocation deed is void; original gift continues unaffected.Limitation for declaration with consequential relief for recovery of possession (Articles 58 and 65, Schedule to the Limitation Act, 1963) - ancillary nature of declaration where further relief is claimed - The suit was not barred by limitation; the claim for recovery of possession based on title governs limitation and is governed by Article 65 (12 years), making the declaration ancillary. - HELD THAT: - While Article 58 prescribes three years for a suit for declaration of title, where a declaration is accompanied by a consequential relief the limitation applicable to the further relief governs. The present suit sought recovery of possession based on title; limitation for possession is under Article 65 (12 years) from when possession becomes adverse. Moreover, where title continues to subsist the right to seek declaration is not barred. Consequently the Trial Court erred in dismissing the suit as time-barred. [Paras 21, 22, 23, 24]Suit for declaration and recovery of possession is not barred by limitation; dismissal on that ground was incorrect.Final Conclusion: The appeal is dismissed. The registered gift deed of 05.03.1983 was accepted and acted upon, conferred absolute title on the plaintiff-respondent, the attempted revocation dated 17.08.1987 is void, and the suit for declaration and possession was not barred by limitation. Issues:Validity of registered gift deed and acceptanceRevocation of gift deedLimitation for filing the suitValidity of registered gift deed and acceptance:The plaintiff filed a suit based on a registered gift deed dated 05.03.1983 for a property measuring 3750 square feet. The Trial Court dismissed the suit citing lack of acceptance of the gift deed. However, the District Judge allowed the appeal, decreeing the suit. The High Court upheld the decision, stating the gift was valid and accepted. The plaintiff's possession and actions post-gift deed, including applying for mutation, proved acceptance. The gift deed was absolute, with no revocation clause, establishing the plaintiff's title over the property.Revocation of gift deed:The question was whether the gift deed could be revoked via a revocation deed dated 17.08.1987. Section 126 of the Transfer of Property Act, 1882, was cited, stating a gift can only be revoked under specific circumstances. The exceptions to revocation were analyzed, concluding that none applied in this case. The revocation deed was deemed void, as the gift was validly executed and not subject to revocation.Limitation for filing the suit:The issue of limitation was raised, with the court of first instance holding the suit barred due to not being filed within three years of the alleged revocation. However, as the gift was found valid, the revocation deed was deemed irrelevant for calculating the limitation period. The suit for possession, governed by Article 65 of the Limitation Act, had a 12-year limitation period, ensuring the suit was not time-barred. The appeal was dismissed, affirming the lower courts' decisions in favor of the plaintiff.