A mother, fully aware of the implications, transferred a significant portion of her property........explain the validity of mother's intelligent transfer of property...

Question: A mother, fully aware of the implications, transferred a significant portion of her property to her stepson, through a gift deed. This transfer was executed with a complete understanding of its impact on her financial stability and the interests of her other heirs, particularly her biological son The biological son challenged the validity of the transfer, alleging that the mother was unduly influenced or lacked the capacity to make such a decision, and he is the sole heir of the property as a biological son. Discuss the relevant Sections of the Transfer of Property Act, 1882, and related legal principles that would apply to determine whether the gift deed is valid or voidable. Also, explain the validity of mother's intelligent transfer of property to her stepson with full appreciation of its effect over her interests. [OJS 2023]

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Answer

To determine the validity of the mother’s gift deed in favour of her stepson and assess the biological son’s challenge under Indian law, particularly under the Transfer of Property Act, 1882 (TPA) and related legal doctrines, the following legal principles are applicable:

1. Essentials of a Valid Gift under Section 122 of the TPA

Section 122 of the Transfer of Property Act, 1882 defines a "gift" as the transfer of certain existing movable or immovable property made voluntarily and without consideration, by one person (the donor) to another (the donee) and accepted by or on behalf of the donee.

For a gift to be valid, the following essential elements must be present:

• The donor must be competent to contract;
• The gift must be made voluntarily (free from coercion, undue influence, fraud, or misrepresentation);
• The gift must be accepted by the donee during the lifetime of the donor;
• It must be made through a registered instrument if the subject matter is immovable property.

In the present case, if the mother was of sound mind and executed the gift deed voluntarily and it was duly registered and accepted by the stepson, then prima facie, the gift deed is valid under Section 122.

2. Competency of the Donor and Mental Capacity

Section 7 of the TPA, read with the Indian Contract Act, 1872, stipulates that the transferor must be competent to contract. Therefore, the donor must be of sound mind and must understand the nature and effect of the transaction.

If the mother executed the deed fully understanding its implications, particularly its impact on her financial stability and other heirs, then it shows she acted with a clear and sound mind. The mere fact that the transfer was in favour of her stepson does not render it void or voidable unless evidence of fraud, coercion, or undue influence is established.

3. Undue Influence and Burden of Proof

Under Section 16 of the Indian Contract Act, 1872, a contract is said to be induced by undue influence where the relationship between the parties is such that one is in a position to dominate the will of the other and uses that position to obtain an unfair advantage.

In this scenario, the biological son bears the burden of proof to show:

• That the mother was under the influence of the stepson;
• That such influence caused her to transfer the property unfairly.
• Unless this is proved by cogent evidence, the transfer cannot be invalidated merely on suspicion or dissatisfaction by other heirs.

4. Rights of Legal Heirs and Testamentary Freedom

The mother's action to gift her self-acquired or separately owned property, even to a stepson, is not barred by law. Under Hindu Succession Law, a person is free to dispose of their self-acquired property as they wish, even excluding biological heirs.

Therefore, the biological son does not acquire an automatic right to property gifted by his mother unless he proves that the property was ancestral or joint family property or the gift was executed under suspicious circumstances.

5. Judicial Precedents Supporting Freedom of Disposition

Courts in India have consistently upheld that:

A person has complete freedom to dispose of their self-acquired property by way of gift or will (e.g., S.R. Srinivasa v. S. Padmavathamma, AIR 2010 SC 2102).
A validly executed gift deed, once accepted and registered, cannot be revoked unless fraud or undue influence is established (K.B. Saha and Sons Pvt. Ltd. v. Development Consultant Ltd., AIR 2008 SC 741).

If it is established that:

• The mother was of sound mind,
• The gift deed was registered and voluntarily executed,
• The donee accepted the gift,
• There is no proof of undue influence,

then the gift is valid and not voidable under the Transfer of Property Act. The mother's intelligent and voluntary transfer of property to her stepson, despite knowing the consequences, reflects her autonomy and cannot be questioned merely due to dissatisfaction from the biological son.

He has no enforceable claim unless the core legal requirements of undue influence or incapacity are successfully established. The mother’s decision stands as a lawful exercise of her right to alienate her property.