Transfer of Property Act. A conditional gift becomes complete only on compliance of the conditions in the deed.

S. Sarojini Amma vs Velayudhan Pillai Sreekumar, Civil Appeal 10785 of 2018. Decided on 26 October 2018.

Judgment Link: https://main.sci.gov.in/supremecourt/2017/37674/37674_2017_Judgement_26-Oct-2018.pdf?fbclid=IwAR0I-qAA4QYAA7yzrFRl0JA4qmBuov9m6k7Yq2W4YUjOYSVPzBpQLyw7Mz4

Held: 18. We are in agreement with the decision of this Court in Reninkuntla Rajamma (supra) that there is no provision in law that ownership in property cannot be gifted without transfer of possession of such property. However, 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.

19. 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 petitioner and her husband and subject to the condition that the gift would take effect after the death of the donor. We are thus constrained to hold that 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.

Compiled by, S.Basavaraj, Daksha Legal