Conditions must be met for senior citizens to declare gift deed null and void: HC

A gift deed executed by a senior citizen can be declared null and void if the document mentions the receiver of the gift is liable to take care of the senior citizen in turn, the Karnataka High Court has ruled in the case Nanjappa and State of Karnataka & Others.

The case

MB Nagaraju bought a property in Kunigal under a registered sale deed on December 1, 2006, in the name of Nanjappa with a condition that the same has to be re-conveyed in his name. The entire sale consideration was paid by Nagaraju.  Nanjappa executed a registered gift deed on February 23, 2011, in favour of Nagaraju. On February 25, 2016, Nanjappa filed an application before the assistant commissioner for a declaration that the gift deed was null and void. The assistant commissioner by the order, dated August 20, 2016, allowed the application filed by Nanjappa and cancelled the registered gift deed, with a direction to the sub-registrar, Anekal, to reregister the right in respect of the said property in favour of Nanjappa. This order was challenged by Nagaraju, who filed a writ petition before the HC.

A single-judge Bench of the HC Court after hearing both parties and considering the material on record by the impugned order, allowed the writ petition and quashed the order dated August 20, 2016, stating that the gift deed did not contain any such stipulation that the transferee shall maintain the senior citizen. However, it was observed that Nanjappa would be at liberty to take recourse to such remedy as may be available to him under the law. Following this, an intra-court appeal was filed by Nanjappa.

What the HC said…

“The (gift deed) document does not contain any stipulation that the donee is under the obligation to the appellant. In the absence of any condition stipulated in the documents, the provisions of Subsections (1) and (2) of Section 23 of the Senior Citizens Act are no applied, the HC said while delivering its judgment on an appeal filed by one Nanjappa.

Sub-section (1) of Section 23 of the Senior Citizens Act says any kind of property transfers, by way of gift or otherwise, could be declared null and void if the following conditions are met:

1. The transfer must have been made subject to the condition that the transferee will provide basic amenities and take care of the basic requirements of the transferor;
2. The receiver of the gift refuses or fails to provide such amenities and physical needs to the transferor.

If both the conditions are satisfied, the property transfer will be deemed to have been made by fraud or coercion or undue influence. Such a transfer then becomes voidable at the instance of the transferor and the maintenance tribunal gets jurisdiction to declare the transfer as void.

While relying on the Supreme Court order passed in the Sudesh Chhikara versus Ramti Devi case, the HC said: “Though our conscious is in favour of the welfare of the senior citizens considering the scope and object of Maintenance and Welfare of Parents and Senior Citizens Act, 2007, but our hands are tied in view of the dictum of the Hon’ble Supreme Court in the case of Sudesh Chhikara, wherein while interpreting the very provisions of Sub-section (1) of Section 23 of the said Act, it has been held that the two conditions must be stipulated in the document, which is binding on all including this Court as contemplated under Article 141 of the Constitution of India.”