P.K. Mohan Ram v. B.N. Ananthachary

Quick Summary

The Court had to decide what the 1969 instrument really was. Was it a settlement deed with immediate effect, or a will that works only after death?

Reading the document as a whole, the Supreme Court held it was a settlement deed. It created present rights, barred revocation, and let beneficiaries enjoy the property with the settlor during his life. Later revocation and will could not undo it.

Issues

• Whether the 1969 instrument titled “Settlement Deed” was truly a settlement or in substance a will.
• Whether the settlor kept any right to revoke or alter after execution.
• Whether fraud or misrepresentation in making the deed was proved.

Rules

• Settlement vs Will: A settlement creates rights in praesenti; a will is revocable during life and speaks only on death.
• Vested vs Contingent: Vested rights arise now and survive the transferee’s death; contingent rights depend on an uncertain future event.
• Fraud/Misrepresentation: The accuser carries the burden of proof.

Facts (Timeline)

Arguments

Judgment

The Supreme Court allowed the appeal and restored the trial court view.

• The instrument was a Settlement Deed, not a will.
• The settlor kept no power to revoke or alter after execution, as the deed itself declared.
• Fraud/misrepresentation was not proved; the burden lay on the alleging party.
• The High Court erred by reinterpreting the clear text and structure of the deed.

Ratio Decidendi

Look at the document as a whole. Clear words giving present enjoyment with the settlor and explicit bar on revocation point to a settlement. A will, by contrast, is ambulatory and revocable till death.

Why It Matters

• Guides drafters on wording that clearly creates a settlement.
• Clarifies that a no-revocation clause carries real legal weight.
• Reaffirms the burden of proof for fraud claims.

Key Takeaways

1. “Present rights + no revocation” → Settlement, not will.
2. A will speaks after death and is revocable while alive.
3. Fraud needs proof; suspicion alone is not enough.

Mnemonic + 3-Step Hook

Mnemonic: “NOW–NO–WILL”

• NOW: Rights arise now → settlement.
• NO: No revocation power → settlement stands.
• WILL: A will works later and is revocable.

IRAC Outline

Glossary

In Praesenti

Rights start now, at the time of the document.

Ambulatory (Will)

Changeable during the maker’s life; operates only after death.

Irrevocable Clause

Language that removes the power to cancel or alter the deed.

FAQs

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