The Madras High Court has ruled that senior citizens can cancel the gifts or settlement deeds executed in favour of their children or close relatives if they do not take care of them. The court gave senior citizens the power to execute this right even if it was not explicitly mentioned in the conditions imposed in the deeds.
A two-judge division bench of Justices SM Subramaniam and K Rajasekar dismissed an appeal filed by S Mala, daughter-in-law of deceased S Nagalakshmi.
The case stems from an incident where Nagalakshmi executed a settlement deed in favour of her son Kesavan. She had hoped that her son and daughter-in-law would take care of her until her death. However, Kesavan failed to do so and after his death Mala too did not fulfill her duty.
This prompted Nagalakshmi to approach the RDO, Nagapattinam, where she said she had executed the deed out of love and affection and for the future of her son. After listening and considering both Nagalakshmi and Mala's statements, the RDO cancelled the execution of the deed.
Mala had filed an appeal challenging the decision, which was dismissed.
Thereafter, she approached the high court.
The Madras HC bench observed that section 23(1) of the Maintenance and Welfare of Parents and Senior Citizens Act, 2007 was designed to protect senior citizens in situations where they transfer their property, either through a gift or settlement, with the expectation that the transferee will provide for their basic amenities.
If the beneficiary fails to meet these obligations, the senior citizen concerned has the option to seek a declaration from the Tribunal to void the transfer, the bench said.
The Act acknowledges that property transfers from senior citizens, especially to children or close relatives, were often motivated by love and affection, it said.
The senior citizen's decision to transfer property was not merely a legal act but one made with the hope of being cared for in their old age. This love and affection become implied condition in the transaction, even if the transfer document itself does not explicitly state it, the bench said.
If the transferee does not provide the promised care, the senior citizen can invoke Section 23(1) to have the transfer annulled, it added.
The court futher said the facts established in the present case before the RDO under the Senior Citizens Act reveal that the aged woman, during the relevant point of time, was 87 years old and she was totally neglected by her daughter-in-law.
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