Case Note & Summary
The case involves a dispute over a property donated by Smt. Randhir Kaur to Doaba Public School via a registered Gift Deed dated 27.05.1981 for educational purposes. The property was mutated in the School's name. Subsequently, on 01.08.1988, an oral exchange was made between the School's Principal, Balwant Singh, and the President of the Doaba Education Society, Mohinder Singh, exchanging the School's land (including the donated property) with Balwant Singh's personal land. This was followed by an agreement dated 25.08.1988. The mutation was changed in Balwant Singh's name. After his death, his widow Balwinder Kaur became the owner. The donor filed a suit in 2001 seeking possession or, in the alternative, a declaration that the School is the owner and the exchange mutation is illegal. The Trial Court partly allowed the suit, granting the alternate relief. The First Appellate Court reversed, holding the donor had no locus standi after the gift. The High Court affirmed. The Supreme Court allowed the appeal, holding that the donor's legal representatives have locus to challenge the misuse of the donated property. The exchange was collusive and illegal as no resolution from the Society authorized it. The Court restored the Trial Court's decree, declaring the School as owner and the exchange mutation void.
Headnote
A) Property Law - Gift Deed - Locus Standi of Donor - Donor's legal representatives have locus to challenge misuse of donated property, especially when the gift was for a specific charitable purpose and the donee's actions defeat that purpose. The donor retains an interest in ensuring the property is used for the intended purpose. (Paras 4.1-4.2) B) Property Law - Exchange of Property - Validity - An exchange of property by the Principal and President of a School without a resolution from the governing Society is illegal and void. Such a transaction is collusive and unauthorized, and cannot divest the School of its ownership. (Paras 4.2-4.3) C) Civil Procedure - Alternate Relief - Courts must consider alternate prayers made by the plaintiff. The First Appellate Court and High Court erred by confining their discussion only to the primary prayer for possession and ignoring the alternate prayer for declaration. (Para 4.1)
Issue of Consideration
Whether the donor or her legal representatives have locus standi to challenge the exchange of property donated by her, and whether the exchange of the suit property by the Principal and President of the School without a resolution from the Society was valid.
Final Decision
The Supreme Court allowed the appeals, set aside the judgments of the First Appellate Court and the High Court, and restored the decree of the Trial Court. The Court declared that the Doaba Education Society (School) is the owner in possession of the suit property, the mutation of exchange No.1824 is illegal and void, and the revenue records be corrected accordingly. The respondent No.1 is permanently restrained from alienating the suit property or using it for any purpose other than educational activities of the School.
Law Points
- Locus standi of donor after gift
- Validity of exchange without authority
- Collusive transaction
- Alternate relief
- Gift Deed conditions
