Gift Deed – Cancellation – Suspicious Circumstances – It is settled principles of law that negative cannot be proved

Plaintiff filed the suit for declaration that the gift deed dated 09.05.1967 purportedly executed by him in favour of defendant Nos. 2 to 4 is fraudulent, illegal and void. The plaintiff also prayed for cancellation of the gift deed.

The lower court recorded the finding that the plaintiff had no cause of action and, therefore, was not entitled to any relief. The court below also found that the plaintiff failed to prove that the gift deed was obtained from him by fraud and as such, the gift deed is not a fraudulent, fabricated and illegal document. Accordingly, the plaintiff’s suit was dismissed.

The Hon’ble High Court observed that it is settled principles of law that a registered document is presumed to be genuine unless the contrary is proved. However, this presumption is rebutable. Once the plaintiff denied its execution with his knowledge and alleged fraud describing how the fraud was played on him, it was for the defendant to have explained the facts, which have been denied by the plaintiff.

The plaintiff has shown the circumstances and the reason as to why he would have gifted his entire property to the the defendants, who are not close relatives without making any provision either for himself or for his wife and the daughter, grand-daughters etc. When these facts were brought on record, it was for the defendants to have satisfactorily explained the matter.

The court further observed that, it is the case of the defendants that plaintiff has purchased the stamp, therefore, it was for the defendants to prove this fact because the plaintiff has denied in so many words and it is settled principles of law that negative cannot be proved.

Once the plaintiff denied the facts, the presumption of genuineness of the gift deed stands rebutted and the onus shifted on the defendants to prove positively the fact asserted by the defendants.

It is settled principles of law that for proving fraud, the circumstance is to be shown satisfactorily to the conscience of the Court because no direct evidence will be found. Here, the plaintiff has proved the fact that he has his wife, daughter, grand-daughters and son-in-law whom he loves. Now the question is, can it be believed that one person will gift all the properties to some persons, who are either not related or distantly related without making provision even for himself and his wife? The court held that, this cannot be the natural conduct of a person.

This is one of the strong circumstances which raises a strong suspicion about the genuineness of the gift deed as there is no explanation at all. Can it be believed that the plaintiff’s love and affection towards his wife, daughter, grand-daughters and son-in-law and even towards himself was lesser than the love and affection towards the defendants?

The other aspect is that in fact the plaintiff was in need of money when he was ailing and was being treated. In such circumstances, he would have sold the property for arranging money but he did not sell. Rather, he obtained assistance from the defendants and then gifted everything, which again creates a strong doubt.

All these are the circumstances, which have been proved by the plaintiff, which clearly indicate that in fact the defendants played a fraud on the plaintiff and got the gift deed executed by him.

In view of above, the Court held that the plaintiff had been able to prove that the defendants fraudulently got the gift deed executed. As such the gift deed was not a genuine document and no title passed on the defendants on the basis of this gift deed.