Gift deed to relatives can be cancelled if senior citizen is neglected: Chhattisgarh HC

Gift deed to relatives can be cancelled if senior citizen is neglected

• Chhattisgarh HC upheld gift deed cancellation for neglecting senior citizens.
• Gift deed can be voided under Section 23 if recipient fails to provide care
• The Senior Citizens Act applies to all religions and overrides other laws

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The Chhattisgarh High Court has ruled that a gift deed executed by senior citizens in favour of a relative can be cancelled under Section 23 of the Maintenance and Welfare of Parents and Senior Citizens Act, 2007, even if the deed does not explicitly contain a clause requiring the recipient to maintain the donor.

What is Gift deed?

It is a legal document a person uses to voluntarily gift a movable or immovable property to another person. A Gift is an absolute transfer of Property, thereby meaning that once the property has been transferred as a gift by way of a registered gift deed, the same cannot be taken away, unless the said deed itself provides for conditions in which it can be done so.

However, the Senior Citizens Act provides for the reversion of the gifted property. “In cases where the elderly senior citizens have gifted their property to their children who, in their later years in life, start avoiding their old parents after receiving the gift. This is to protect such senior citizens of their rightful property who may have gifted their property, though out of their love, but later manhandled by their owns sons and daughters. This is also to avoid any coercive or undue emotional influence that may be used by the children over their elderly parents,” said Shashank Agarwal, Founder, Legum Solis.

What is the recent Chhattisgarh High Court case?

The case before the Chhattisgarh High Court arose from a dispute titled Ramkrishna Pandey & Anr. vs. State of Chhattisgarh & Ors., in which an elderly couple, Sureshmani Tiwari (83) and Lata Tiwari (80), had executed a gift deed in April 2016 transferring their residential property in Bilaspur to their nephew, Ramkrishna Pandey. The transfer was made on the basis of trust and the understanding that Pandey would care for the senior citizens in their old age.

After the gift deed, the Tiwaris continued to live in the property but later alleged that Pandey and his sister Shrimati Shakuntala Mishra subjected them to mistreatment, including harassment, denial of basic amenities, withdrawal of Rs 30 lakh from their bank accounts, and disconnection of electricity and water. According to the couple, these actions forced them to leave their home and move to a old-age home.

The couple approached the Maintenance Tribunal under the Maintenance and Welfare of Parents and Senior Citizens Act, 2007, seeking cancellation of the gift deed under Section 23 on grounds that the transferee had failed to maintain them. The Tribunal declared the gift deed void and directed the return of the property, and the Appellate Tribunal upheld that decision. Pandey and Mishra challenged these orders before the High Court.

A Division Bench of the High Court, presided over by Chief Justice Ramesh Sinha and Justice Ravindra Kumar Agrawal, dismissed the writ petition, holding that even in the absence of an express maintenance clause in the gift deed, an implied obligation of care and support could be inferred from the relationship and circumstances. Because that implied obligation was breached, the court upheld the cancellation of the gift deed under Section 23 of the Act.

What rights do people have after giving their property through a gift deed when the recipient fails to take care of them?

Under Section 23 of the Maintenance and Welfare of Parents and Senior Citizens Act, 2007, a gift deed can be declared void if the recipient fails to provide basic amenities and physical needs. “Crucially, the Chhattisgarh High Court has recently reaffirmed that an 'express clause' for maintenance isn't mandatory in the deed. If the circumstances imply that the gift was made in exchange for future care, and that care is breached, such as forcing a senior into an old-age home, the Maintenance Tribunal has the power to annul the transfer and restore the property to the senior citizen,” said Shweta Tungare, Co-Founder, LawTarazoo.

Does the same rule apply for muslims or is there any other rule?

The same Senior Citizens Act rule applies to Muslims too. “The Maintenance and Welfare of Parents and Senior Citizens Act, 2007 is a religion-neutral welfare law: it extends across India and protects all “parents” and “senior citizens” (no religion-based carve-outs). Most importantly, Section 3 gives it overriding effect so if there is any inconsistency between this Act’s protections (including Section 23 cancellation of a conditional gift/transfer for failure to maintain) and any other law or instrument, the Act of 2007 prevails,” said K. Sai Teja, Advocate, Supreme Court.

The Supreme Court has upheld the power of Maintenance Tribunals to order eviction of children or relatives from a senior citizen’s property where there is neglect, harassment or breach of the obligation to maintain. “The Court has recognised that forcing a parent to leave their own home or live in distress amounts to neglect under the law. It has also clarified that these proceedings are summary in nature and do not require a lengthy civil trial, ensuring timely and effective relief for senior citizens,” said Himesh Thakur, Associate Partner, PSL Advocates & Solicitors.