New Delhi, Jan 15: In an important judgement, the Supreme Court has ruled that property gifted to minor children by parents cannot be revoked by them at a later stage on the ground that the child did not expressly accepted the gift. Settling a 18 year-old litigation between a brother and sister over the property gifted by their mother, a bench comprising Justice Y K Sabharwal and Justice D M Dharmadhikari said in a recent judgement that "where a gift is made by a parent to a child, there is presumption of acceptance of the gift by the Donee."

In 1945, one Devyani of Mayyanad cherry in Kerala executed a registered gift deed in favour her 16-year-old son and minor daughter giving them one half of the landed property inherited by her from her father.
However, in 1970, she executed a cancellation deed nullifying the gift-deed of 1945 and thereafter executed a will bequeathing the property to her daughter.

The trial court had dismissed the suit filed by the son, K Balakrishnan, claiming title to the suit property on the ground that the Donee was a minor at the time of execution of the gift-deed and no one has accepted the gift on her behalf. Though the district court took a view contrary to the trial court view, the high court had upheld the earlier verdict.
Setting aside the high court view, the apex court said, "Where a gift is made in favour of the donor, who is the guardian of the child, the acceptance of the gift can be presumed to have been made by him or on his behalf without any overt act signifying acceptance by the minor."

Bureau Report