Court rules that absence of registered gift deed invalidates state's claim over land initially given for school purposes
In a significant judgment, the Himachal Pradesh High Court has directed the State Education Department to return a piece of land to Rattan Sain, the grandson of the original owner, after it was found that the land was never legally transferred through a registered gift deed. The land, situated in District Shimla, was initially given by Sain’s grandfather approximately 50 years ago for the establishment of a government school, which has since been closed.
Presiding Judge, Jyotsna Rewal Dua, ruled that the absence of a registered gift deed signed by the donor and attested by two witnesses, as mandated by Section 123 of the Transfer of Property Act, renders the gift incomplete. Consequently, the ownership rights remain with the original owner, the court concluded.
The State Education Department had argued that the land was gifted to them and used for running a government school for about five decades. However, with the closure of the school in 2024 due to low student enrollment, the department had merged it with a nearby school. The petitioner, Rattan Sain, sought the return of the land, arguing that the purpose for which it was given—running a school—was no longer being fulfilled.
The court observed that even though the land was in possession of the State Education Department, the ownership still reflected in the name of the petitioner's family in the revenue records. The court emphasized that without a legally executed gift deed, the department could not claim ownership rights.
Additionally, the court considered provisions under the Indian Easements Act, 1882, noting that if the land was used under a license for a specific purpose, that purpose having been abandoned, the license becomes revocable.
The judgment underlines the importance of proper legal documentation in the transfer of property rights and sets a precedent in cases where land is given for public welfare purposes without formal registration.
The High Court has ordered the State Education Department to hand over possession of the land back to the petitioner within four weeks, marking a significant win for Rattan Sain and setting a legal precedent regarding the requisites for valid property transfers.
Bottom line:-
Transfer of Property Act, 1882 - Gift of immovable property - Valid transfer of immovable property by way of gift requires a registered instrument signed by the donor and attested by at least two witnesses. Absence of such a registered document renders the gift incomplete, and ownership rights remain with the original owner.
Statutory provision(s): Transfer of Property Act, 1882 Section 123, Section 126; Registration Act, 1908 Section 17; Indian Easements Act, 1882 Section 60, Section 62.
Rattan Sain v. State of H.P., (Himachal Pradesh) : Law Finder Doc id # 2941082
