Madras HC: FDs, jewellery qualify as property under Senior Citizens Act

In a recent judgement, the Madras High Court held that fixed deposits (FDs) and jewels come under the definition of property under the Senior Citizen Act, 2007

The Madras High Court recently ruled that fixed deposits (FDs) and jewellery qualify as property under the Senior Citizens Act, 2007. In its judgment, the court upheld an elderly woman's claim against her daughter, referring to Section 23 of the Act, which pertains to the transfer of property.

 

What is the case?

 

According to media reports, the mother initially lodged a complaint with the District Collector against her daughter for failing to provide maintenance, but did not receive any resolution. She then approached the Madras High Court to challenge the decision.

 

As per the mother’s claims, her late husband had two fixed deposits worth ₹80 lakh and ₹90 lakh, for which she was named the nominee. Following his demise, she transferred these deposits to her own name. However, both her daughter and son had previously agreed to divide all assets equally, including the fixed deposits, while continuing to pay the interest to their mother.

 

Despite this agreement, the daughter allegedly misled the mother into signing documents that transferred the fixed deposits into her own name and subsequently stopped the interest payments intended for the mother.

 

Rishabh Gandhi, founder, Rishabh Gandhi and Advocates explains what this law is and what it says?

 

The Maintenance and Welfare of Parents and Senior Citizens Act, 2007 protects elderly people from neglect and financial abuse. Section 23 of the Act allows senior citizens to reclaim property given to their children if they are not cared for. The law applies to both movable and immovable assets. The Madras High Court recently ruled that fixed deposits and jewellery are also considered property under this Act. This means elderly parents can take back these assets if their children fail to support them. The judgement reinforces that courts will protect senior citizens from financial exploitation.

 

“The ruling of the Madras High Court underscores the legal protection available to senior citizens when their financial security is threatened. The Court reaffirmed that elderly individuals should not be deprived of their rightful assets through fraudulent or coercive transfers. It clarified that financial instruments, such as fixed deposits and valuables, are covered under the law, ensuring that senior citizens are protected beyond just real estate disputes,” said Bharath Gangadharan, counsel, SKV Law Offices.

 

“The judgement also establishes that even when no explicit condition of care is mentioned in a transfer document, the very act of transferring assets with the expectation of love and support creates a legal obligation. Neglecting an elderly person after benefiting from their assets can, therefore, amount to a breach of this duty,” Gangadharan said.

 

Aviral Kapoor, partner, Alagh & Kapoor Law Offices explains this ruling has significant implications for senior citizens and their families: 

  The judgment emphasises that the conduct of the parties involved is more important than the specific wording of the transfer deed. This means that even if a deed doesn't explicitly state the conditions of care, a transfer can be voided if the transferee's actions demonstrate a breach of trust.

 

The law serves as a deterrent to those who might exploit senior citizens by taking their property under false pretenses. It reinforces the importance of genuine care and support for the elderly.

 

Senior citizens have legal recourse to reclaim property that has been wrongfully transferred. The Act provides a framework for them to seek justice and ensure their well-being.