Transfer of Property Act, 1882 – s.122 – Document styled as gift deed but executed for consideration with the executant retaining possession and reserving her right over the property concerned – Such document if can be treated as instrument of gift – Appellant executed a purported gift deed in favour of her nephew i.e. the respondent, for consideration (partly paid) inter alia stating therein that the gift would take effect after the death of the appellant and her husband – Later, appellant cancelled the gift deed – Cancellation deed executed by the appellant, whether null and void – Held: Gift means to transfer certain existing moveable or immoveable property voluntarily and without consideration by one person called the donor to another called the donee and accepted by or on behalf of the donee – A conditional gift with no recital of acceptance and no evidence in proof of acceptance, where possession remains with the donor as long as he is alive, does not become complete during lifetime of the donor – Conditional gift only becomes complete on compliance of the conditions in the deed – When a gift is incomplete and title remains with the donor, the deed of gift might be cancelled – In the instant case, admittedly, the deed of transfer was executed for consideration and was conditional subject to the condition that the donee would look after the appellant and her husband and that the gift would take effect after the death of the donor – There was no completed gift of the property in question by the appellant to the respondent and the appellant was within her right in cancelling the deed.
Allowing the appeal, the Court
HELD: 1.1 Gift means to transfer certain existing moveable or immoveable property voluntarily and without consideration by one person called the donor to another called the donee and accepted by or on behalf of the donee. A conditional gift with no recital of acceptance and no evidence in proof of acceptance, where possession remains with the donor as long as he is alive, does not become complete during lifetime of the donor. When a gift is incomplete and title remains with the donor the deed of gift might be cancelled. [Paras 14, 15] [558-G-H; 559-A-C]
1.2 The conditions precedent of a gift as defined in Section
122 of the Transfer of Property Act must be satisfied. A gift is transfer of property without consideration. Moreover, a conditional gift only becomes complete on compliance of the conditions in the deed. In the instant case, admittedly, the deed of transfer was executed for consideration and was in any case conditional subject to the condition that the donee would look after the appellant and her husband and subject to the condition that the gift would take effect after the death of the donor. There was no completed gift of the property in question by the appellant to the respondent and the appellant was within her right in cancelling the deed. [Paras 18, 19] [559-F-H; 560-A]
Naramadaben Maganlal Thakker v. Pranivandas
Maganlal Thakker and Others (1997) 2 SCC 255 : [1996] 5 Suppl. SCR 780 – relied on.
Reninkuntla Rajamma v. K. Sarwanamma (2014) 9 SCC
445 : [2014] 8 SCR 890 – referred to.
As published in the Supreme Court Reports, Supreme Court of India. Text from the Indian Supreme Court Judgments open data set (Dattam Labs), CC BY 4.0.
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