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Civil Property & InheritanceSupreme Court of India

N.P. Saseendran v. N.P. Ponnamma

Civil Appeal · 2025 INSC 388Decided 24 Mar 2025
C.A. No.-004312-004312 - 2025 (arising from SLP (C) No. 698 of 2023)
Justice J.B. Pardiwala · Justice R. Mahadevan

Background

A father executed a 1985 registered deed in favour of his daughter (Respondent No.1) over certain property. In 1993 he executed a deed cancelling that document and then sold the same property to his son (the appellant) by a separate sale deed. The daughter sued, arguing the 1985 document was a gift that had already taken effect and could not be unilaterally cancelled, while the son argued it was only a Will (revocable at any time since ownership never actually transferred during the father's lifetime). The trial court and first appellate court both accepted the son's "Will" theory and dismissed the daughter's suit, but the Kerala High Court reversed this, holding the 1985 document was a valid gift/settlement, so the later cancellation and sale to the son were void.

Decision Breakdown

The Supreme Court examined whether the 1985 deed was a Will (which takes effect only on death and is freely revocable) or a gift/settlement (which vests ownership immediately and, once accepted, cannot be unilaterally cancelled). It held that delivery of physical possession is not the only way to prove acceptance of a gift, registering the document and holding the original title deed can also demonstrate acceptance, and the daughter's possession of the original registered deed showed she had accepted it during her father's lifetime. Since the gift had already been acted upon and accepted, the father had no unilateral right to cancel it, making both the 1993 cancellation deed and the subsequent sale deed to the son void. The Court agreed with the High Court that the courts below had wrongly characterised the document as a Will, and dismissed the son's appeal, upholding the High Court's ruling in the daughter's favour.

Lesson Learnt

A registered deed that immediately transfers ownership (even if some rights like income or possession during the giver's lifetime are reserved) is a gift or settlement, not a Will, and once such a gift is accepted (which can be shown through conduct like registering and holding the document, not only by taking physical possession) it becomes legally irreversible and cannot be cancelled by the giver alone.

N.P. Saseendran v. N.P. Ponnamma – Legal Case Shots | LegalAware