The Supreme Court of India recently delivered a significant judgment in the case of N.P. Saseendran v/s N.P. Ponnamma & Others (Civil Appeal No. 4312 of 2025), which meticulously examined the distinctions between a "Will," a "Gift," and a "Settlement" in the context of property disposition. This appeal arose from a dispute over a document executed in 1985, with the core question being its true legal character.
The Core Dispute: A Document's Identity
The case originated from a suit filed by Respondent No.1 (daughter) seeking a declaration of her right, title, and interest over a property, claiming it was gifted to her by her father (Defendant No.1) via a registered deed dated June 26, 1985. She also sought to declare a subsequent cancellation deed and sale deed executed by her father in favor of Defendant No.2 (son) as null and void.
The trial court and the first appellate court both concluded that the 1985 document was a "Will," leading to the dismissal of the daughter's suit. However, the High Court overturned these concurrent findings, interpreting the document as a "gift deed" and granting a declaratory decree in favor of the daughter. This led to the appeal before the Supreme Court.
Legal Definitions and Distinctions:
The Supreme Court delved into the legal definitions and characteristics of a gift, settlement, and will:
Gift: As per Section 122 of the Transfer of Property Act, 1882, a gift involves a voluntary disposition of existing movable or immovable property without consideration, where acceptance must occur during the donor's lifetime. Registration is mandatory for immovable property. Crucially, unilateral revocation is barred under Section 126 of the Transfer of Property Act. Delivery of possession is not a prerequisite for a valid gift. Acceptance can be express or implied, including the donee registering the document or possessing it.
Settlement: Defined under Section 2(b) of the Specific Relief Act, 1963, and Section 2(q) of the Indian Stamp Act, a settlement is a non-testamentary instrument disposing of property, often for purposes like family distribution or providing for dependents. While not necessarily monetary, "consideration" in a settlement often includes love, care, affection, or moral obligation, especially within family contexts. A settlor can reserve a life interest, but this doesn't affect the vesting of the property in the settlee. Registration is mandatory for immovable properties. Unilateral revocation is also not permitted unless specifically provided for in the deed.
Will: A testamentary document as per the Indian Succession Act, 1925, a Will is a legal declaration of a testator's intention regarding their property, taking effect only after their death. A key feature of a Will is its revocability or alterability by the testator at any time during their lifetime, provided they are of sound mind. Registration of a Will is not mandatory.
The Supreme Court's Ruling:
The Supreme Court emphasized that the "nomenclature" of a document is not decisive; rather, its true nature must be discerned from its contents, read as a whole to understand the object and intent of the executant. The fundamental distinction lies in whether the disposition of interest in the property is in praesenti (takes effect immediately) or is postponed until the death of the executant.
In this specific case, the Supreme Court upheld the High Court's decision, confirming that the 1985 document was indeed a "settlement". The Court reasoned that once a document is categorized as a gift or settlement, and in the absence of any specific clause reserving the right to cancel, the executant loses the right to unilaterally revoke it. Therefore, the subsequent unilateral cancellation of the deed by the father and the sale deed executed in favor of the son were deemed invalid. The Court also noted that other family members supported the daughter's claim, and the document's recitals satisfied the requirements for classification as a settlement.
Section 122, Transfer of Property Act - 1882
Transfer of Property Act, 1882
Indian Stamp Act, 1899
