Tuesday 7 November 2023

Senior Citizens: Supreme Court clarifies position on reclaiming conditional gift



Senior citizens who are gifting or transferring property to their child or heir on the condition that the transferee provides basic amenities or caters to their physical needs should include an express provision to this effect in the gift or transfer deed. This will help to ensure that the senior citizen is able to reclaim the property if the child or heir fails to comply with the condition.

Supreme Court of India's judgment in the case of Sudesh Chhikara v. Ramti Devi & Anr clarifies this.

*Main points of the judgment are as follows*:

* Section 23(1) of the Senior Citizens Act allows a senior citizen to reclaim property gifted or transferred to a child or heir if the transferee has failed or refused to provide basic amenities or physical needs to the transferor.
* For section 23(1) to apply, the transfer must have been made subject to the condition that the transferee would provide basic amenities and basic physical needs to the transferor.
* The existence of such a condition in the transfer deed must be established before the Maintenance Tribunal.
* The transfer deed should include an express provision to the effect that the transferee will provide basic amenities and physical needs to the transferor.
* Without an express provision in the transfer deed, senior citizens will be unable to reclaim gifted or transferred property should the child or heir fail to provide amenities or tend to their needs.

This judgment is a significant development as it clarifies the position of senior citizens who are gifting or transferring property to their children or heirs. It is also a reminder to senior citizens to carefully consider the terms of any gift or transfer deed before signing it.

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