N. Thajudeen vs. Tamil Nadu Khadi and Village Industries Board
Background
The Tamil Nadu Khadi and Village Industries Board sued the appellant (the original donor) for a declaration of title and possession over land, based on a registered gift deed of 1983 that it claimed to have accepted. The trial court dismissed the suit, holding the gift deed was never validly accepted or acted upon. On appeal, the District Judge reversed this and decreed the suit in the Board's favour, and the appellant's further appeal was dismissed by the High Court, prompting the appeal to the Supreme Court, which also raised a limitation-law question about how long the Board had to sue.
Decision Breakdown
The Supreme Court examined whether the gift was validly made and accepted, and separately whether the suit was filed in time. On limitation, it held that a suit for declaration of title to immovable property is not time-barred so long as the right to the property continues to exist, and that even though the three-year limitation period under Article 58 applies to a bare declaration, a claim for recovery of possession based on title has a 12-year limitation period, so the suit for possession was not barred. Finding no error in the appellate court's and High Court's reasoning that the gift was validly accepted and irrevocable, the Court dismissed the appeal.
Lesson Learnt
A suit to establish title over property is generally not defeated by delay so long as the underlying right to the property still exists, and once a validly executed and accepted gift deed lacks a revocation clause, the donor cannot unilaterally take back the gifted property later.