KC Laxmana vs KC Chandrappa Gowda ( 2022)

This question is not new and has been dealt by hon’ble courts including Hon’ble Supreme Court of India many a times. It is recently seen in the case of KC Laxmana vs KC Chandrappa Gowda ( 2022) where the hon’ble apex court has dealt it again and reiterated that ” It is well settled that a hindu father or any other managing member of a HUF i.e. Hindu Undivided Family has a power to make a gift of ancestral property only for a ‘pious purpose’ and what is understood by the term ‘pious purpose’ is a gift for charitable and/ or religious purpose. Therefore, a deed of gift in regard to the ancestral property executed ‘out of love and affection’ does not come within the scope of term ‘pious purpose’. It is irrelevant if such gift or settlement was made by donor i.e. the first defendant, in favour of a donee who was raised by the donor without any relationship i.e. the second defendant.”

It is clear from the above mentioned observation of the Hon’ble Supreme Court of India that if a karta or manager of the property gifts the property which is a HUF property or ancestral property that too out of love and affection, then that particular transaction can be disputed and may be set aside.

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