Property Inheritance and Gift Deeds: Supreme Court Ruling on Customary Hindu Law

The Supreme Court of India, in the case of Dalip Kaur (D) Thr. Lrs. & Ors. vs. Ram Kishan (D) Thr. Lr(s). & Ors., ruled on the legal validity of a gift deed executed by a widow in favor of her three daughters. The case revolved around property inheritance, family arrangements, and customary Hindu law in Punjab.

The judgment affirms the principle that family settlements and voluntary gifts executed with full consent are legally binding, preventing disputes among legal heirs.

Background of the Case

The dispute centered around property owned by Harnam Singh, who passed away on 12 November 1934. He left behind his widow, Prem Kaur, and three daughters:

• Basant Kaur (married to Ram Kishan, the plaintiff)
• Dalip Kaur (one of the appellants)
• Raj Kaur (another appellant)

Under the customary law prevailing in Punjab at the time, Prem Kaur inherited the property as a limited owner. On 19 September 1951, she executed a registered gift deed, dividing the property equally among her three daughters. This arrangement was recorded in official revenue records through Mutation No. 1555 on 26 June 1952.

When Basant Kaur passed away on 25 March 1975, she left a written will bequeathing her 1/3rd share of the property to her husband, Ram Kishan. Ram Kishan then filed a suit seeking possession of his late wife’s share. However, his sisters-in-law (Dalip Kaur and Raj Kaur) contested his claim, arguing that upon their sister’s death, the property should revert to them as their father’s heirs.

Arguments of the Petitioner (Ram Kishan)

Ram Kishan, the plaintiff, contended:

• Basant Kaur was the legal owner of 1/3rd of the property through the gift deed executed by Prem Kaur.
• Since the property was legally transferred, it could be passed on through a written will.
• As Basant Kaur’s husband and named heir, he had the legal right to inherit her share.
• Dalip Kaur and Raj Kaur’s claim to reversion was legally unsustainable, as the gift deed had granted absolute ownership to all three daughters.

Arguments of the Respondents (Dalip Kaur & Raj Kaur)

The appellants, Dalip Kaur and Raj Kaur, argued:

• Their mother, Prem Kaur, only had a limited estate under customary Hindu law and could not have executed a valid gift deed.
• Upon Basant Kaur’s death, her share should have reverted to the legal heirs of Harnam Singh (i.e., the two surviving daughters).
• Ram Kishan, being an outsider to the family, had no rightful claim to the property.
• The concept of reversion under Hindu law entitled them to inherit the entire estate.

Supreme Court’s Observations

The Supreme Court examined the historical context of property inheritance under Hindu law in Punjab and made key observations:

• “The gift deed executed by Prem Kaur in 1951 was legally valid and had been accepted by all three daughters.”
• “Since the daughters took possession and their names were entered into revenue records, they became absolute owners of their respective shares.”
• “A family settlement aimed at preventing future disputes must be given full legal effect.”
• “The argument of reversion does not hold since the property had already been transferred in full ownership.”

Final Judgment

The Supreme Court upheld the High Court’s ruling and ruled in favor of Ram Kishan:

• Basant Kaur’s 1/3rd share was legally transferred to her through the gift deed.
• Since she executed a valid will in favor of her husband, Ram Kishan was entitled to possession of the property.
• The concept of reversion did not apply since the gift deed created absolute ownership.
• The judgment emphasized that family settlements should be respected to prevent unnecessary litigation.

Impact of the Judgment

This ruling sets a crucial precedent for property inheritance and family arrangements. Key takeaways include:

• Gift deeds executed with consent and recorded in official records are legally binding.
• Reversion claims under Hindu law are not applicable when ownership is legally transferred.
• Courts encourage family settlements to avoid prolonged disputes.
• Beneficiaries of gift deeds hold absolute ownership and can transfer property through wills.

With this ruling, the Supreme Court reinforced the importance of respecting legally executed gift deeds and ensuring that family disputes over inheritance are minimized.

Petitioner Name: Dalip Kaur (D) Thr. Lrs. & Ors..
Respondent Name: Ram Kishan (D) Thr. Lr(s). & Ors..
Judgment By: Justice N.V. Ramana, Justice Mohan M. Shantanagoudar.
Place Of Incident: Punjab.
Judgment Date: 27-09-2018.

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