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ASOKAN versus LAKSHMIKUTTY & ORS.

Citation: [2007] 13 S.C.R. 901 · Decided: 14-12-2007 · Supreme Court of India · Bench: S.B. SINHA · Disposal: Appeal(s) allowed

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Judgment (excerpt)

A SO KAN 
A 
v. 
LAKSHMIKUTTY & ORS. 
DECEMBER 14, 2007 
B 
[S.B. SINHA AND HARJIT SINGH BEDI, JJ.] 
Transfer of Property Act; Ss.122 & 123: 
Gift-Donor-parents executed a deed of gift transferring c 
possession of property gifted in favour of his son-donee-Averment 
in a deed of gift in regard to handing over of possession-Whether 
amounts to sufficient proof of acceptance thereof by donee-Held:-
In order to constitute a valid gift, acceptance thereof is essential-Even 
a silence may sometimes indicate acceptance-Overt act not necessary D 
as express acceptance need not be required for completing the 
transaction of gift-When a registered document is executed, 
presumption arises in regard to the correctness thereof-Onus lies on 
the donor and not on the donee-The fact that possession had been 
given to do nee raises a presumption of acceptance-Thus, the gift in E 
question is a valid gift-Once a gift is complete, it cannot be rescinded 
on the ground of subsequent conduct of the donee-Moreover, on facts, 
S.91 of the Evidence Act not attracted-Evidence Act, 1872. 
Evidence Act, 1872; Ss. 91 & 92: 
F 
Gift-Plea against recitals in the deed of gift-Permissibility of 
-Held: Not permissible. 
The question which arose for determination in this appeal was 
as to whether an averment made by the donor-Parents in the deed 
of gift executed in favour of his son in regard to handing over G 
possession of certain property is sufficient proof of acceptance 
thereof by the donee to constitute a valid gift. 
Appellant contended that the first Appellate Court as also the 
901 
H 
902 SUPREME COURT REPORTS 
[2007] 13 (Addi.) S.C.R. 
A High Court had failed to take into consideration the fact that the 
deeds of gift being not onerous ones and the factum of handing over 
of possession of the properties which were the subject matter of the 
gift, having been stated in the deeds of gift themselves, it was not 
necessary for him to prove that he accepted the same; and that 
B keeping in view the provisions of Sections 91 and 92 of the Indian 
Evidence Act, no plea contrary to or inconsistent with the recitals 
made in the deeds of gift is permissible to be raised. 
Respondents submitted that acceptance of gift being a condition 
precedent for a valid gift and the first Appellate Court and the High 
C Court having arrived at a finding that the same was not accepted, 
the impugned judgments should not be interfered with; that the 
recitals made in the deeds of gift are not conclusive and, thus, 
evidence to show that the same were not correct is admissible in 
evidence; and that even assuming that Sections 91 and 92 of the 
D Indian Evidence Act would be applicable, by reason thereof, only 
the onus has shifted on the donor and as they have discharged the 
same, the impugned judgments are unassailable. 
E 
Allowing the appeal, the Court 
HELD: 1.1. Gifts do not contemplate payment of any 
consideration or compensation. It is, however, beyond any doubt or 
dispufo that in order to constitute a valid gift acceptance thereof is 
essential. However, the Transfer of Property Act does not prescribe 
any particular mode of acceptance. It is the circumstances attending 
F 
to the transaction which may be relevant for determining the 
question. There may be various means to prove acceptance of a gift. 
The document may be handed over to a donee, which in a given 
situation may also amount to a valid acceptance. The fact that 
possession had been given to the donee also raises a presumption 
G of acceptance. [Para 14) (907-C-DJ 
Sanjukta Ray v. Bimelendu Mohanty, AIR (1997) Orissa 131; 
Kamakshi Ammal v. Rajalakshmi, AIR (1995) Mad 415 and Samrathi 
Devi v. Parsuram Pandey, AIR (1975) Patna 140, referred to. 
H 
1.2. While determining the question as to whether delivery of 
ASOKAN v. LAKSHMIKUTTY 
903 
possession would constitute acceptance of a gift or not, the A 
relationship between the parties plays an important role. It is not a 
case that the appellant was not aware of the recitals contained in 
deeds of gift. The very fact that the par.ents-donor contended that 
the donee, son, was to perform certain obligations, is itself indicative 
of the fact that the parties were aware thereabout. Even a silence B 
may sometime indicate acceptance. It is not necessary to prove any 
overt act in respect thereof as an express acceptance is not 
necessary for completing the transaction of gift. 
[Para 16] [907-F-G] 
c 
Narayani Bhanumathi and Anr. v. Kart

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