A three-judge bench of the Supreme Court has held that the acceptance of a gift can be implied from the conduct of the donee. Such acceptance has to be implied from surrounding circumstances such as the donee taking possession of the gifted property or the donee possessing the gift deed itself.

In this case, a single bench of the Rajasthan High Court had held that land had been transferred by way of a registered gift deed by the owner of that land to his son. In appeal, a division bench of the High Court set this order aside by declaring that the gift deed did not show acceptance of the gift by the donee. In fact, it showed that the donee was unaware of the gift deed itself.

Setting the division bench’s judgement aside, the Supreme Court observed that the facts and circumstances depict implied acceptance of the gift by the donee. The Court noted that that the gift deed had been validly registered and contained signatures of both, the donor and the donee, which implies acceptance of the gift.

The Court held that since the gift deed met with all requirements of gift as per the Transfer of Property Act, it can be declared to be valid and legal. The only other relevant requirement is that the gift must be accepted during the lifetime of the donor, which can be implied from surrounding facts and circumstances.

Judgement details :

• Daulat Singh (dead) though L.R.s v. State of Rajasthan (Civil Appeal No. 5650 of 2010).

Judgement link :
https://main.sci.gov.in/supremecourt/2009/20316/20316_2009_32_1501_25002_Judgement_08-Dec-2020.pdf