Validity of Gift Deeds Under Muslim Law: Supreme Court Overturns Lower Court Ruling

The case of Khursida Begum (D) By LRS. & Ors. vs. Mohammad Farooq (D) By LRS. & Anr. revolves around the validity of a gift deed under Muslim law. The dispute centered on whether the gift of an undivided share in a property, which was under tenancy, was legally valid. The Supreme Court ruled in favor of the donee, overturning the decisions of the lower courts.

Background of the Case

The dispute arose over a gift deed executed on February 24, 1976, by Hazi Azimuddin in favor of his son, Rafiuddin. The gift covered one-third of a tenanted property in Jaipur. After the gift deed, Rafiuddin was to receive one-third of the rent. However, from January 1, 1977, the defendants (his brothers) collected the entire rent and refused to give him his share.

The plaintiff, Rafiuddin, filed a suit for recovery of rent, but the trial court ruled against him, stating that the gift was invalid under the concept of hiba-bil-musha (a gift of an undivided share in divisible property) and that possession had not been delivered.

Petitioner’s Arguments

The appellants contended that:

• The gift was validly executed by their father and was registered.
• The property was under tenancy, and hence, actual possession was not required. The transfer of rent collection rights constituted constructive possession.
• The courts erred in holding the gift invalid due to hiba-bil-musha, as exceptions exist where property is freehold and located in a large commercial town.

Respondent’s Arguments

The respondents argued that:

• The father was old and ailing at the time of execution.
• The gift was invalid because possession was not handed over.
• There was an oral family arrangement where the plaintiff’s father relinquished his rights.

Supreme Court’s Judgment

The Supreme Court ruled that the gift was legally valid. Key findings included:

• Since the property was tenanted, delivery of possession was not necessary for a valid gift.
• The right to collect rent was transferred, which constituted constructive possession.
• The property was located in Jaipur, a large commercial town, making it an exception to the hiba-bil-musha rule.
• The lower courts erred in ignoring these legal principles and not giving effect to a genuine gift deed.

Thus, the Supreme Court allowed the appeal and ruled in favor of the plaintiff.

Conclusion

This judgment clarifies the application of Muslim law on gift deeds, particularly the exceptions to hiba-bil-musha. It sets a precedent for similar disputes, emphasizing the legal validity of gifts involving tenanted properties.

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