Gauhati High Court

Fraudulent execution of gift deeds in lieu of sale deeds vitiates title despite recitals of sound mind.

Nanee Baruah vs On The Death Of Deena Nath Baruah, His Legal Heirs And Ors

Gauhati High CourtJUDGMENT: May 26, 20263 MIN READSOURCE JUDGMENT
THE ORIGINAL LAWLENS SUMMARY
01

Facts

The plaintiff (Deena Nath Baruah) agreed to sell 12 Bighas of land to defendant Nos. 1 and 2 at a rate of ₹8,000 per Bigha, receiving an advance of ₹55,000

Source reference: p. 5

While the plaintiff intended to execute Sale Deeds upon payment of the balance amount, the defendants allegedly prepared three Gift Deeds (Nos. 419/99, 420/99, 421/99) instead

Source reference: p. 6

The plaintiff, an elderly man, signed these documents under the impression they were Sale Deeds without being allowed to read them

Source reference: p. 6, 17

Upon discovering the fraud, the plaintiff filed a suit for declaration of title and cancellation of the Gift Deeds

Source reference: p. 7

Both the Trial Court and First Appellate Court decreed in favor of the plaintiff, holding the deeds fraudulent

Source reference: p. 9

The defendants appealed to the High Court under Section 100 CPC

Source reference: p. 9
02

Issues

1. Whether the Court was justified in cancelling the deeds on grounds of fraud and undue influence despite the recitals stating the plaintiff was of sound mind and in the absence of specific pleadings

Source reference: p. 10 / para 5

2. Whether the Court wrongly shifted the burden of proof to the defendants to prove the transaction was not induced by fraud or undue influence

Source reference: p. 10 / para 5

3. Whether the Court was justified in declaring the deeds invalid without specific findings on the defendants' position to dominate the plaintiff's will under Sections 16 and 17 of the Contract Act

Source reference: p. 10 / para 5
03

Law Applied

The Court applied Section 101 of the Evidence Act, which places the initial burden of proof on the party asserting a fact (the plaintiff), and Section 102, which mandates that the onus shifts once the initial burden is discharged

Source reference: p. 15-16

It relied on Anil Rishi v. Gurbaksh Singh regarding the distinction between the "burden of proof" and "onus of proof"

Source reference: p. 15

The Court referred to Section 34 of the Specific Relief Act, 1963, regarding the requirement for consequential relief in declaratory suits

Source reference: p. 11, 21

It further applied Section 122 of the Transfer of Property Act, 1882, which defines a gift as a voluntary transfer without consideration

Source reference: p. 19

Section 100 of the CPC, which restricts interference with concurrent findings of fact unless they are perverse

Source reference: p. 19-21
04

Reasoning

The Court found that the plaintiff had specifically pleaded fraud in paragraphs 6 and 8 of the plaint, refuting the defendants' claim of inadequate pleading

Source reference: p. 14

On the burden of proof, the Court reasoned that while the plaintiff bore the initial burden, he successfully discharged it by proving he was elderly, was misled into signing documents he could not peruse, and that no consideration was paid for what the defendants termed a "gift" despite an initial sale agreement

Source reference: p. 17-18

Consequently, the onus shifted to the defendants to prove the transaction was voluntary, which they failed to do

Source reference: p. 18

Regarding maintainability, the Court rejected the argument that the suit was barred by Section 34 of the Specific Relief Act for lack of seeking "possession"; evidence showed the plaintiff remained in possession, making a prayer for permanent injunction sufficient consequential relief

Source reference: p. 22

The Court concluded the "Gift Deeds" were a sham because the parties' original intention was a sale (not a gift), and the lack of consideration or voluntary intent invalidated the instruments

Source reference: p. 19, 24
05

Holding

The High Court dismissed the appeal and affirmed the lower courts' judgments

It held that the substantial questions of law were not attracted as the findings were based on concurrent factual evidence of fraud

Source reference: p. 14, 18, 25

The Court declared Gift Deed Nos. 419/99, 420/99, and 421/99 invalid and non-enforceable, confirming the plaintiff's right, title, and interest over the "Ka" schedule land

Source reference: p. 9, 25

No order was made for the return of the advance money as the defendants filed no counter-claim

Source reference: p. 9, 13
Gauhati High Court

Original Court PDF

Nanee BaruahvsOn The Death Of Deena Nath Baruah, His Legal Heirs And Ors

Gauhati High Court · May 26, 2026

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