R. Kuppayee v. Raja Gounder (2004) 1 SCC 295
Quick Summary
The father settled a small piece of immovable property with a tiled house in favour of his two married daughters by a registered deed. Years later, he tried to take it back, saying the deed was not genuine and that joint family property cannot be gifted. The Supreme Court held that a father may make a reasonable gift to his daughters from joint family property. There is no fixed limit; reasonableness depends on the family’s status and total holdings. The appeal was allowed and the daughters’ settlement was sustained.
Issues
- Were the courts’ findings vitiated due to misreading PW-2’s evidence, the attesting witness?
- Is a gift/settlement to married daughters of a reasonable extent from joint family property legally valid?
Rules
| Law | Principle | Effect Here |
|---|---|---|
| Hindu Succession Act, 1956 | A father/Karta may make a reasonable gift from joint family property to his daughters. | No hard-and-fast limits; court checks family status, total holdings, and size of the gift. |
Facts (Timeline)
Arguments
Appellants (Daughters)
- Settlement was out of natural love and affection.
- Possession was handed over on the date of deed.
- PW-2 supports execution; father not habitually drunk.
Respondent (Father)
- Denied executing settlement; claims he only went to witness a sale deed.
- Alleges fraud/misrepresentation using his liquor habit.
- Says property is joint family with his son and cannot be gifted.
Judgment
The Supreme Court allowed the appeal. It held that a father can make a reasonable gift to his married daughters from joint family property. There is no rigid cap. Courts must see the family’s position, total immovable property, and the part gifted. Here, the respondent failed to plead and prove unreasonableness. Therefore, the settlement deed stands and the lower courts’ decrees were set aside.
Ratio Decidendi
- A reasonable gift by a father from joint family property to his married daughters is valid.
- No hard-and-fast rule fixes a quantitative limit; it varies with family facts.
- Burden to show unreasonableness lies on the party challenging the gift.
Why It Matters
The case guides how courts test reasonableness in gifts from joint family property to daughters. It supports equitable treatment while protecting the estate from excessive transfers.
Key Takeaways
- Fathers can make reasonable gifts to married daughters from joint family property.
- No fixed percentage; depends on family status and total holdings.
- Challenger must show the gift is excessive or unreasonable.
- Lower courts’ approach can be corrected if they misread evidence like PW-2.
Mnemonic + 3-Step Hook
Mnemonic: “Reason Rules the Gift” — If the gift is reasonable, the deed stands.
- Ask: Is it a gift from joint family property to daughters?
- Assess: Family status, total property, part gifted.
- Answer: If reasonable, the gift is valid; otherwise, not.
IRAC Outline
Issue
Whether the settlement to married daughters from joint family property is valid and whether PW-2’s evidence was misread.
Rule
Hindu Succession Act principles allow a reasonable gift by the father/Karta to daughters; no fixed quantitative cap.
Application
The respondent did not show the gift was unreasonable compared to total holdings; settlement was registered and possession delivered.
Conclusion
Appeal allowed; settlement to daughters stands; lower courts’ judgments set aside.
Glossary
- Settlement Deed
- A registered document transferring property without consideration, often out of love and affection.
- Joint Hindu Family Property
- Property owned by a Hindu undivided family, managed by the Karta.
- Reasonable Gift
- A gift proportionate to family status and holdings; not excessive.
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