Senior Citizens Can Revoke Gift or Settlement Deeds if Neglected by Children: Madras High Court
Moneylife Digital Team 20 March 2025
In a landmark judgement, the Madras High Court has ruled that senior citizens are entitled to revoke gift deeds if their children fail to take care of them, even in the absence of an express condition in the deed. The ruling came in response to an appeal challenging the cancellation of a property settlement deed executed by an 87-year-old woman in favour of her deceased son and his wife, who neglected her.
 
The Court held that under Section 23(1) of the Maintenance and Welfare of Parents and Senior Citizens Act, 2007, the transfer of property made with the expectation of care and maintenance by the transferee can be revoked if the transferee fails to fulfil that obligation. 
 
The bench, comprising justice SM Subramaniam and justice K Rajasekar, says, "The love and affection being the consideration, which can be traced out in the settlement deed, would be sufficient to hold that such love and affection is an implied condition that the senior citizen will be taken care of by the beneficiary of the settlement or gift deed."
 
"In the present case, the senior citizen, both in her complaint and before the revenue divisional officer (RDO), categorically deposed that she was completely neglected by her son during his lifetime and by her daughter-in-law. The senior citizen has three daughters, but she executed the settlement deed in favour of her only son, denying equal property rights to her daughters. Therefore, it would be a natural expectation that her son and daughter-in-law would take care of her till her life time. Such a condition being implied under section 23(1) of the Senior Citizens Act, the decision of the competent authority annulling the settlement deed is in consonance with the spirit and objectives of the Senior Citizens Act," the bench says.
 
The judgement was pronounced in the case of S Mala vs District Arbitrator and others, where the late S Nagalakshmi, an older woman, had settled her property in favour of her only son, S Kesavan, hoping to be looked after during her old age. Following the death of Kesavan, however, she was neglected by her daughter-in-law, prompting her to seek annulment of the settlement deed.
 
The RDO of Nagapattinam conducted an inquiry and found that the senior citizen had been neglected and left uncared for, especially after her son's demise. Consequently, the RDO ordered the cancellation of the settlement deed. Ms Nagalakshmi's daughter-in-law contested the cancellation, arguing that the deed did not expressly stipulate any maintenance obligation. However, the Court observed that the lack of an explicit clause in the deed does not invalidate the senior citizen's right to revoke it when there is sufficient evidence of neglect.
 
The Court stressed that the intention behind the Maintenance and Welfare of Parents and Senior Citizens Act, 2007, is to ensure the welfare and dignity of older people. It noted that the very act of executing a gift or settlement deed out of love and affection implies an expectation of care and support. The judgement emphasised that the law should be interpreted liberally to protect senior citizens from neglect and exploitation.
 
Quoting precedents from various judgements, the HC observed that even in the absence of an express clause, the purpose of the Act is to safeguard the elderly from being abandoned after parting with their property. 
 
The ruling sets a significant precedent by reinforcing the legal right of senior citizens to revoke property transfers if they are not adequately cared for, thereby reaffirming their right to live with dignity.
 
This judgement not only upholds the rights of senior citizens but also emphasises the moral obligation of children to care for their parents. It serves as a reminder that emotional bonds and familial duties must not be overlooked when property transactions are executed within the family.
 
(Case No. WA No3582 of 2024 and CMP Nos27835 & 27838 of 2024   Date: 6 March 2025)
Comments
KKZ
4 weeks ago
How is this case different from the case of a senior textile magnet being driven out of his house in Mumbai after he settled in favour of his son?
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