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2009 (3) TMI 596 - SUPREME COURTGenuineness of a Gift – legal or illegal – period of limitation in challenging gift – Held that: - A registered document carries with it a presumption that it was validly executed. It is for the party questioning the genuineness of the transaction to show that in law the transaction was not valid. We have noticed hereinbefore that Razak had been receiving rent from the tenants. In fact, the respondent No. 1 in his suit claimed a decree for apportionment of rent. We would presume that Razak had been collecting rent from the tenants during the life time of his father. The agency to collect rent, however, came to end as soon as an order of mutation was passed in his favour. Apart from the fact that the Razak was allowed to continue to collect rent which having regard to the declaration made in the deed of gift must be held to be on his own behalf and not on behalf of the donor. High court failed to take into consideration the import and purport of the donor's application before the Tahasildar – HC committed a manifest error in holding that the order of mutation on that basis was not decisive. Period of limitation in filing a suit – gift deed dated 21.2.1973 - Article 59 of the Limitation Act - The suit should have been filed within a period of three years from the date of knowledge of the fact that the transaction which according to the plaintiff was void or voidable had taken place. The suit having not been filed within a period of three years, the suit has rightly been held to be barred by limitation.
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