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Civil Property & InheritanceSupreme Court of India

Randhir Kaur (Deceased) through her Lrs. v. Balwinder Kaur & Ors.

Civil Appeal · 2019 INSC 627Decided 6 May 2019
Civil Appeal Nos. 4629-4630 of 2019
Justice Uday Umesh Lalit · Justice Indu Malhotra

Background

A woman had, by a registered gift deed in 1981, donated land to a public school for educating local children. Years later, the school's Principal and the Society's President purportedly "exchanged" this valuable school land for inferior, unirrigated land elsewhere, without any resolution authorising them to do so, and the Principal then got the school land mutated into his own name. After the donor's death, her legal heirs sued, and the courts below disagreed on whether the exchange was valid.

Decision Breakdown

The Supreme Court found that the First Appellate Court and the High Court had wrongly focused only on whether the donor's heirs could seek possession (which they could not, since the gift was absolute), while overlooking the alternative relief the Trial Court had correctly granted: a declaration that the exchange was illegal and the mutation should be set aside. The Court held the 1988 "exchange" was a wholly collusive and unauthorised transaction by the Principal and Society President, done without the required Society resolution, as confirmed by the fact that the school never actually shifted to the supposedly exchanged land even 31 years later. It therefore quashed the exchange and the resulting revenue entries, restored the land to the school's name, allowed the appeal, and directed the respondents to pay Rs. 1 lakh in costs.

Lesson Learnt

Land or property held in trust for an institution (like a school) cannot be given away or "exchanged" by its managers without proper authorisation, and courts will look past the label given to a transaction to its real substance, especially when the stated purpose of a transfer was never actually carried out.

Randhir Kaur (Deceased) through her Lrs. v. Balwinder Kaur & Ors. – Legal Case Shots | LegalAware