Supreme Court: In a case where a portion of a joint Hindu Family was alienated ‘out of love and affection’ by way of a gift deed, the bench of SA Nazeer* and Krishna Murari, JJ has explained the scope of powers of members of Joint Hindu Family and has held that a Hindu father or any other managing member of a HUF has power to make a gift of ancestral property only for a ‘pious purpose’.
In the case at hand, a gift deed was executed by the Karta of a Joint Hindi Family in favour of the appellant, who was raised by the Karta, ‘out of love and affection’ and by virtue of which the appellant was given a portion of the joint family property.
The Court, however, held that a Hindu father or any other managing member of a HUF has power to make a gift of ancestral property only for a ‘pious purpose’ and what is understood by the term ‘pious purpose’ is a gift for charitable and/or religious purpose. Therefore, a deed of gift in regard to the ancestral property executed ‘out of love and affection’ does not come within the scope of the term ‘pious purpose’.
Observing that it is irrelevant if such gift or settlement was made by a donor in favour of a donee who was raised by the donor without any relationship, the Court held that the gift deed in the instant case was not for any charitable or religious purpose.
[KC Laxmana v. KC Chandrappa Gowda, 2022 SCC OnLine SC 471, decided on 19.04.2022]
*Judgment by: Justice SA Nazeer
Counsels
For appellant/Donee: Advocate Anand Sanjay M. Nuli
For Respondent/Plaintiff: Senior Advocate Arvind Varma
Can Grandfather gift inherted-immovable-property of only two of many grand children “out of love and affection” which otherwise would be divisible equally between all of his children – being entitled to the estate of mother, whose residential property was allowed to be bequeathed in favour of father through an unregistered Will by way of NOCs from all the children ?