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- In the present case, all the beneficiaries of purported "settlement deed" were settlor's own relatives - The deed declaring that thenceforth the property shall be enjoyed by settlor and beneficiaries without creating any encumbrance or making any alienation -

Reserving settlor's right to income from the property during his lifetime, the deed requiring that after settlor's death, all the beneficiaries should sell the property, spend the specified portion of sale proceeds for certain purposes and divide the remainder among themselves in the manner specified - The deed denuding the settlor of right to cancel it or alter its terms

Specifying the amount of K's debt, the deed required the said beneficiaries to discharge the undischarged portion thereof, if any. The settlor finally recorded that he shall have no right to cancel the "settlement deed" or alter the terms thereof.

The question before the Supreme Court was: whether the deed executed by K was a "settlement deed" and was therefore irrevocable and denuded K of any right to execute a subsequent will in favour of Respondents 1 and 2 as held by the trial court and first appellate court or it was merely a will as held by the High Court in the second appeal?

A careful reading of the document in question shows that in the title itself the document has been described as a settlement deed. By executing that document, K expressed his intention, in no uncertain terms, to settle the property in favour of sixteen persons who were none else than his own relatives and declared that "from this day onwards I and you shall enjoy the land and house without creating any encumbrance or making any alienation whatsoever". That was an unequivocal creation of right in favour of sixteen persons in praesenti. Though, the beneficiaries were to become absolute owners of their respective shares after https://www.mhc.tn.gov.in/judis/ S.A.Nos.1087 & 1088 of 2008 the death of the settlor, the language of the document clearly shows that all of them were to enjoy the property along with the settlor during his lifetime and after his death, each of the beneficiaries was to get a specified share. In the concluding portion, the settlor made it clear that he will have no right to cancel the settlement deed for any reason whatsoever or to alter the terms thereof.